Rodin
09-02-2013, 09:05 PM
Strata X Energy (SXA) is an upcoming IPO (ASX: SXA) which could be well worth watching when it lists in less than 2 weeks time on February 20.
http://www.strata-x.com/
SXA management has an excellent track record of creating substantial shareholder in their previous ventures (Arrow and Bow Energy, Senex/Royal Resources). The company has a diversified portfolio of shale oil and gas projects in some of the hottest areas at the moment (Eagle Ford, Texas; Canning Basin).
On listing, SXA will have a market cap and EV of about $38 million and $23 million respectively - IMO an undemanding valuation given the substantial acreage position in prospective basins and high growth potential of each project.
A number of wells are planned between listing and June including initial proof of concept vertical/horizontal/multi frac wells at the Maverick Project, Eagle Ford and Vail Project, Illinois Basin. This means plenty of activity and hopefully positive newsflow over coming months.
Below is a link to an initial research report on SXA which highlights the potential short to medium upside possible for SXA from its IPO price of 30 cents...
"Strachan Corporate assesses a risk adjusted after tax target value of $217 million or $1.16 per share, but over time any of its four main projects holds potential for a 5 to 10 fold value expansion with success."
http://strachancorporate.com.au/wp-content/uploads/2013/01/Strata-X-Strachan-Corporate-Report-Jan-20131.pdf
http://www.strata-x.com/
SXA management has an excellent track record of creating substantial shareholder in their previous ventures (Arrow and Bow Energy, Senex/Royal Resources). The company has a diversified portfolio of shale oil and gas projects in some of the hottest areas at the moment (Eagle Ford, Texas; Canning Basin).
On listing, SXA will have a market cap and EV of about $38 million and $23 million respectively - IMO an undemanding valuation given the substantial acreage position in prospective basins and high growth potential of each project.
A number of wells are planned between listing and June including initial proof of concept vertical/horizontal/multi frac wells at the Maverick Project, Eagle Ford and Vail Project, Illinois Basin. This means plenty of activity and hopefully positive newsflow over coming months.
Below is a link to an initial research report on SXA which highlights the potential short to medium upside possible for SXA from its IPO price of 30 cents...
"Strachan Corporate assesses a risk adjusted after tax target value of $217 million or $1.16 per share, but over time any of its four main projects holds potential for a 5 to 10 fold value expansion with success."
http://strachancorporate.com.au/wp-content/uploads/2013/01/Strata-X-Strachan-Corporate-Report-Jan-20131.pdf