Value Microcaps Junior Energy

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ROE.V - THE oil play on Mexico?

Per my last two posts. Here are my notes from subscriber summit. ROE.V is betting big on Mexico and were the largest successful bidder in the first Mexico onshore oil block auction. Mexico is undergoing a hige change of course liberaliIng their entire energy sector from electrical generation, transmisson, distribution to oil and natural gas production to midstream. ROE.V is a way tonplay the production side. These are my notes. I have never looked at company before somI have nonidea about capital structure and balance sheet. Reply to this tbread with comments. 10 minute CFO presentation:

ROE Renaissance Oil
- Mexico state oil production peaked at 3.5M boepd 10 years ago. 2M boepd now
- Pemex focused offshore and neglected onshore historically
- 160 on-shore farmouts to come in next few years
- 200 blocks designated for auction in next 5 years
- 2015 ROE.V locked up 3 of best properties including almost half of OOIP in auction, most of production too. Leaped into being largest independent producer in country at 1600 boepd after auction. This is small.
- LucOil partnership hopefully sitting in middle of next big shake play.
- Starting to recomplete and do workovers this month. Low hanging fruit
- Will start to lay first pads in Nov and Dec for 'transformational' wells into their shale play.
- Ian Telfer is biggest backer. Founded goldcorp as a mexican focused miner
- Amatitlan could be shale sweet spot. ROE is operator but partnered with LucOil
- Upper Jurrasic shale 3X thicker than US. They think big potential of courae.
- Need to drill first horizontal in Mexico.
- 1550 boepd from Chiapis. Think they can double or triple production in next few years here. Pretty easy. No modern optimization or workovers