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Message: SHP New Highs

 

Black Gold Letter

1:58 PM (1 hour ago)
 
 
 
 
 
 
 
 
SHP New Highs
 
 
 
 
 
 
Good Afternoon,
 
  
 Shoal Point Energy (SHP/SHNPF) looks likely to carve out new highs into the .30's this week. I believe this stock is tightly held and with well #1 looking quite good, most of us are holding for higher prices. Flow rates should be released end of January or first week of February at latest. I have a strong sense that the numbers will be robust and quite possibly better than what SHP modeled in the investor presentation.
 
The next couple of wells will be very compelling targets as well. The seismic shoot from last summer identified a handful of juicy targets that look fantastic. I think we'll see well #2 drilled in about 45-60 days (sometime in March). The economics on these wells have typically been excellent, with net payback to SHP projected within 90 days. This would allow for scaling out of cash flow with no real need to finance.
 
I hope they do finance a bit on the way up, just to keep up the pace on the first 3-5 wells. But, they wouldn't need to raise much money at all if/when they choose to do so. We're looking quite good here folks and a continued steady climb looks to continue in 2020 on top of the strong performance we experienced in 2019. Add on weakness...if there even is any in the near term.
 
I think .20 is gone for good and even buying more in the mid .20's might not present itself....

 

Sincerely,
Eric Muschinski ​
Black Gold Letter
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