Proactive Investors - Run By Investors For Investors

Mackie repeats 'buy' on Point Loma ahead of first high impact well spud

Expected to spud is the 5-10 well in the Lower Mannville horizontal oil well, which lies south of the company’s producing Paddle River oil development.
Mackie repeats 'buy' on Point Loma ahead of first high impact well spud
Point Loma has "multi-bagger" return potential, says the broker

Broker Mackie has repeated a 'buy' on junior oiler  Point Loma Resources Ltd (CVE:PLX), which is due to start a high impact multi-well drill program this month.

Expected to spud is the 5-10 well in the Lower Mannville horizontal oil well, which lies south of the company’s producing Paddle River oil development targeting the new pool.

"The new horizontal well location is keying off bypassed oil shows in the 02/10-10 well," said analyst Bill Newman.

"The target has the potential for larger oil pay than its current producing Paddle River oil pool to the north and management sees up to 10 horizontal well locations. We expect the 5-10 well to spud in November."

moreover, Point Loma has "multi-bagger" return potential from its Banff and Rex oil plays, and the Duvernay shale oil resource play, reckons Newman.

This first well will likely target  the low risk new Lower Manville oil pool, followed by the Rex oil play (Upper Mannville) or Banff play.

"Success on just one play would unlock significant value and be a game changer for the stock," says Newman.

Mackie says the firm remains highly undervalued trading at around 60% of its 1P reserves value of $0.37per share,  with 2P reserves valued at $0.58 per share for Mannville only (not including the new Lower Mannville oil play, Rex Oil, Banff or Duvernay shale play).

Mackie targets $1.10 for the shares, which are currently at $0.23 - up 2.22% on the  day.

View full PLX profile View Profile

Point Loma Resources Timeline

Related Articles

1556564353_pulse---drew-and-garth.jpg
April 30 2019
The company was founded by industry professionals Garth Johnson, who is CEO, and Drew Cadenhead, president and chief operating officer
Drill ship
Thu
The Irish company is waiting for US$10mln from Chinese partner APEC to start exploration and appraisal work
Oil infrastructure
July 02 2019
The company controls 150,000 net acres, with over 230 (net to Point Loma) drilling opportunities in multi-zones.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use