Headwater Exploration Inc. (CDDRF)

[geodan]

Had good talk with CEO Steve Moran

Steve was kind enough to call me being the IR person was on vacation. Was very impressed. First he is a good guy, honest, trust him after the talk. We discussed a bunch of things maybe 45 mins or so.

Yes Bill 106 legalizes Fracking. And they already have permission for 3 Fracks on Anticosti. JMHO there is little doubt Anticosti is a big profitable field waiting for drilling. The issue now those putting up the bucks want more commitment from gov that they can drill up the whole island. That is good and bad. It has delayed drilling, but pressuring for more commitment is good on other hand. To be determined what will happen on that.

NB is off limits fracking wise, ban now.

Old Harry is likley the biggest undrilled structure in the world. It is 5 times bigger than https://en.wikipedia.org/wiki/Hibernia_oil_field which is 2 billion barrels produced or in reserves. So Old Harry could at upper limit be 10 billion barrels. But costly to drill and hard to get a drilling permit as offshore. As they have said, looking for partner. By chance who I suggested would be a good partner has actually shown some interest in years past. Again his honestly came through, said mostly likely the structure will not have oil, but sure is worth finding out, being what the upside is.

So they have a pile of cash they would like invest in some cash flowing western Canada assets/companies and their existing production is doing very nicely.

My bottom line is that CDH is worth its current price plus some, if it did not have Anticosti or Old Harry. Again JMHO Canada gov saying it has billions of barrels is correct at Anticosti and Old Harry could be amazing. Bottom line is that it is maybe the most exciting upside you can buy in as sub $100 million oil company.