Welcome To The Shoal Point Energy HUB On AGORACOM
Shoal Point Energy Ltd. is a petroleum exploration and development company
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Shoal Point Energy
Good Morning,
Shoal Point Energy (SHP/SHPNF) has VERY likely bottomed already. The last 3 weeks of weakness was normal considering the huge run up that the stock had and, in particular, the free trading of 8 cent shares from their summer private placement. Profit takers look to be drying up fairly quickly as we expected. Recapturing 20 cents (50 day moving average) will be the next big bullish trigger technically.
That could easily occur this week, as the company has begun spudding of their first well in Mount Evans, Kansas. This first well is huge because if they can prove out their partners model, Shelby Resources, then the share price is going MUCH MUCH higher in 2020! Why? Because these wells (2 out of 3 historically have hit) pay back in 60-90 days!
With such fast pay back on principal investment, at current oil prices, the ability for SHP to scale will be fast and furious. Being up to 5 producing wells by the end of summer is not out of the question and getting to that point with no or little dilution would be amazing! Once we get flow rates back from SHP in January, we can start doing some back of the napkin analysis as to where the stock could go in 2020 based on cash flow.
I think it has very significant potential to be a gem in our portfolios! I'm expecting an update before Christmas, maybe even this week. Stay tuned....
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