- Nexera Energy (TSXV:NGY), a mispriced oil stock, has increased its ownership in the Marpat leases in the Somerset field of Bexar County, Texas, from 25 to 100 per cent
- The company’s experienced management and strategic holdings, detailed below, put it in a position to realize considerable upside form its current share price
- Nexera Energy is a microcap energy stock with oil-producing properties in southwest Texas, including interests in 540 wells
- Nexera Energy stock (TSXV:NGY) has lost 33.33 per cent year-over-year and 91.30 per cent since 2018
Nexera Energy (TSXV:NGY), a mispriced oil stock, has increased its ownership in the Marpat leases in the Somerset field of Bexar County, Texas, from 25 to 100 per cent.
The US$160,000 acquisition consisted of four leases with four oil wells per lease, each of them accretive to daily production according to management’s assessment, adding credence to the undervaluation of NGY shares.
The company immediately consolidated the leases into one lease with 17 wells, and sold 50 per cent of its interest for C$300,000, which it will use to bring all Marpat wells on production, in addition to optimizing its other wells in the Somerset field.
“We are thrilled to have reached these agreements as we take advantage of high oil prices. Acquisitions such as these are a key part of Nexera’s strategy to grow daily production using our company’s unique ability to operate shallow oil wells efficiently and cost effectively,” Shelby Beattie, CEO of Nexera Energy, said in a statement.
The Marpat acquisition adds to Nexera’s attractive collection of assets backed by a management team that has drilled more than 200 wells in south Texas since 1981. Standout assets include:
- The Stockdale Horizon projects, which offer 10 vertical well targets, three of which contain up to a combined 600,000 barrels of oil (bbls) in estimated recoverable reserves
- The Lavernia projects, which house their own vast array of vertical and horizonal exploration opportunities
- The Wooden Horse projects, which are producing about 25 bbls per day from wells 3, 4 and A5 in the Austin Chalk formation
- Production Resources, the 100-per-cent-owned operator of Nexera’s properties, whose shallow producing oil wells enjoy long-life reserves of more than 30 years and numerous secondary recovery opportunities
- The DCRC project, where five wells drilled to date are producing 73 bbls per day of oil, with 11 additional locations surveyed for future drilling
With a business structured to maximize exploration upside, including a consistently high gross profit margin to stabilize cash generation upon a potential discovery, investors have every reason to believe Nexera Energy stock will rebound from its 33.33 per cent loss year-over-year and 91.30 per cent loss since 2018.
Nexera Energy is a microcap energy stock with oil-producing properties in southwest Texas, including interests in 540 wells.
Nexera Energy stock (TSXV:NGY) is unchanged, trading at C$0.02 per share as of 9:44 am ET.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.