Value Microcaps Junior Energy

[cartonet]

DXE.V / DALXF (Dualex Energy)
http://www.dualexen.com/index.php


This is my "lottery stock" for 2013:

Roughly 100 O/S at 0.14 USD = 14M market cap

DXE (NO DEBT) has production of gas in Hungary which provides roughly about 2 USD M of funds flows which are more than enough to "keep the lights on". That might be worth a (very) few cents per share, allright...

Now for the lottery part....

Drilling to begin ( has actually already begun for 3 weeks now ) in Tunisia:

http://africahydrocarbons.com/wp-content/uploads/2013/04/Africa-Hydrocarbons-April-2013-website-Presentation.pdf

I am presenting their partner´s (NFK, 49% interest) presentation since DXE hasnt bothered to show a new presentation for ages.

John Nelson is the CEO for DXE and CFO for NFK (Africa Hydrocarbons) and he was involved ( or was it the other way around? I just dont remember)

http://www.huffingtonpost.com/james-burgess/is-tunisia-the-new-hot-sp_b_3063836.html

But this the key issue:

John Nelson is CEO of Canadian-listed Africa Hydrocarbons Inc. (NFK). A veteran geologist, Nelson spent much of his career in East and Central Africa--much of it for Mobil Oil--studying regional and mapping rift basins at a time when no one else was shopping around in Africa's interior. Over his 27 years in the industry, Nelson has also had junior E & P experience, recently serving as CEO for Lion Energy Corp., which was bought out by Africa Oil Corp 'AOI' in 2011 as a way for AOI to gain access to their impressive Kenyan land package that John had put together.

Now, If we look at the cumulative current market cap of DXE ( about 14M USD) and NFK (about 9M USD) = USD 23M


Think of PEC´s last well with market cao going close to 50M !!!



As seen in the presentation this is no "Wildcat" drill.....

* BNH target has close analoge at 25km which has been one of Tunisia´s largest producers for 30 years

To add to excitement:

* As seen in presentation, Shell has absolutely stacked ALL land surrounding DX/NFK´s concessions

* In case of "any" success, there is plenty of infrastruture available.... from BNH well location to the Sidi El Kilhani pipeline there is only a few kilometers....

WEll... I am not presenting this in a very well logical way and wanted to put out a lot more stuff, wanted to put out a better presentation but I am very tired now... Think those experienced on the oil patch can get enough clues from here on....

Here´s another better written piece on it by Keith Schaefer

http://www.oilandgas-investments.com/info/?p=85



Even 10M barrel (which is half of what is being targeted..) discovery net to DXE has to be 1 buck to DXE price, so 85c upside....

In case of a dust, you get what? 10c downside? ( remember DXE, NOT NFK, has the Hungary cashflow plus some cash at hand...)

Better than going to Las Vegas ....

Just have to figure out how much you can afford to lose on it...

BTW I expected the share price to run up on spud announcement but it has done nothing but tank... just something to do with the current state of the markets, no way for the current info we have to tell anything yet...

http://finance.yahoo.com/news/dualex-announces-operational-bhn-1-120000715.html

So the lower it drifts... ( and it has from about 24 to 14 cents) , the better buy for late birds who might be facing a multibagger runner just like Nelson´s latests success with AOI....)

Or a nasty gap down....


Place your bets....

I have done so

NO wildcat here.... better than 50/50 odds in Vegas ?

Maybe

:)