Now that suspension is lifted after all these months, I find that my NCS shares are now in oil which is where the rest of my portfolio is already!!!
For obvious reasons Crosby sees a great future in oil, especially in oil shale over the longer term. Seemingly funded by shorter term revenues from a series of shallow producing wells.
If the Utah oil shale leases have projected oil reserves of approximately 200 million barrels, then at current SP of 2p these are valued at less than 4p per barrel. Has anybody got a feel for typical valuations of oil shale in politically stable areas like N.America, or anywhere for that matter? Sounds incredibly cheap to me given that some of the investment will realise revenue from producing or wells with good quality production prospects.
Having looked at a lot of medium E&P oils like Burren, Dana, Dragon, Tullow, Venture it seems that in round terms 200 million barrels is about the average 2p (prospective and probable) reserves. These are valued at an average market cap of roughly £1,000 million, that is a value of about £5/barrel in round terms. £5/barrel is at a time when the oil sector and oil price is near a recent low. Comparing £5/barrel say for Burren, which operates in relatively politically unstable areas, with 4p/ barrel for Utah shale in a politically stable area, its easy to understand why Crosby thinks he can make Tomco a multi-bagger.
Having bought in at 1.5p per share before suspension, I topped up at 2.2p today, but intend to top up further now the sp is down to
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