PETRO RIVER OIL CO COM USD0.00001 (POST REV SP(OTCBB:PTRC) is one of the hottest movers on the OTC of late. PTRC is bouncing around $2.50 and holds a current market cap of $45.71M. Just factoring the discovery of 2.5 million barrels of oil in just their Osage County, Oklahoma project multiplied by $48, price of oil on 6/1/17, they are sitting at $120 million of undrilled oil alone. That is discounting the California project (Kern County, CA) and their Northern Ireland project of Larne Basin. PTRC may be an undervalued oil play judging by its reported production and reserves.
Petro’s Osage county project has low operating costs ($300,000 per well per year). As per their latest quarterly reports, they have $1,413,443 as cash and cash equivalents and they have receivables totalling $2,748,604. That is a war chest of $4,162,047, which should lower the risk on any of their projects. This is a 106,500 acre project, with Petro River having a 94% controlling interest. What is also interesting is that the wells would be shallow, leading to a lower risk environment and cheaper infrastructure. Following this optimistic news, Petro River President Stephen Brunner commented “This is a significant 2nd discovery for Petro River and we are excited with the initial results”.
Just a few days ago, May 31, 2017, Petro river has shot up by 29.88% due to a very auspicious announcement – they are going for another well this week. “After positive results on our past two wells, which discovered 2 separate chat oil fields, we feel our 3-D seismic technology has been proven to mitigate risk and are moving forward with our plan to drill this third exploratory well,” said Stephen. What is even more promising is that their California project is still on its way, with California having “more significant prospective reserves” as per the Newswire.
With President Donald trump pushing more Deregulatory actions for companies, now is indeed a good time for Oil and gas companies to explore and develop. A March 9, 2017 Newswire article states that:
Trump’s executive orders deregulating many of the hurdles that have stymied exploration over the past 8 years, including the opening of some federal lands that have been restricted, both onshore and offshore has given new hope for big oil and gas producers. Independent oil companies, looking to capitalize on Trump’s de-regulation initiatives are taking the opportunity to flex their own not so dormant muscles, to capitalize on potential momentum in the oil drilling and exploration sector.
Subscribe below and we’ll keep you on top of what’s happening before $PTRC stock makes its next move.
Along with the Trump de-regulation initiatives, U.S. crude production recovery and how competitive domestic exploration and production becomes, seems to come from claims of newer exploration technology, cost savings from improvements and innovation while targeting vast oil reserves, mostly through shale play economics.
At today’s oil prices, it is apparent that economics could play a larger role in oil and gas exploration than politics. OPEC and other non-OPEC nations, and their control on production and pricing, will continue to pressure US oil companies to strike deals with their contractors, and find ways of operating more efficiently at lower prices. Either way these smaller independents are bound to benefit from this new dynamic.
With the recovery of oil prices and increasing political support, Petro River may strike it rich with this Osage County project alone. In fact, the 2.5 million barrels as potential reserve is located on 1,610 acres of the 4,480 structural closures, which constitutes only 36% of the total acreage. Petro River is now on its third exploratory mission just for the Osage County project alone and if they found more potential reserves, the stock price would inevitably shoot up. Even if they don’t, PTRC stock is still technically undervalued, and would be a good value buy on a dip. For more news on PTRC and other fast-moving stocks, please subscribe to FinanceRegistrar.com below.