BRK (ASX) – All in my own opinion. This company has some serious potential as a long term stock and is super cheap at the moment. The idea of the business is to accumulate land that is mineral rich (oil/shale), place some wells on the land to show its potential and sell it off once the land values increase. In the meantime, they will produce their own oil from the wells to turn a profit. The company has nine wells that it started setting up in May last year. It plans to add another 14 to take production up to 1000 BOE/day. Plenty more good reading on this stock with a google search. Granted, this stock hasnt seen much movement over the past 12 months and I think largely due to the understanding of the business model but when the market realizes the land values and readjust them to reflect their true value, no doubt the share price will re-rate accordingly. To top it all off, oil prices are strong at the moment which should help to increase BRKs productivity, cashflow and so on. The next quarterly report should be interesting. Please DYOR.
Jada Franklin: In these also mate. Been a pretty slow 6 months since i purchased
Jocelyn Mckinney: Completely agree – very slow. Lots more wells coming online in the next 12 months though so should see a bit more happening soon. Still in the infancy stages which one could argue is the best time to be in. 🙂
Jada Franklin: Get in before everyone realises the potential. Patience isnt my best strength
Kathryn Barber: Good choice hold it till Aug….
Jada Franklin: Why aug kiet? You a holder?
Kathryn Barber: Pipeline finish in Aug up NT holding a few mils
Jada Franklin: Thanks for the info mate
Kathryn Barber: Jada Franklin: good for DT for now after Aug that when it pumping
Jada Franklin: Im holding LT kiet. Hopefully she pays off
Emily Campbell: Which pipeline Kathryn Barber:? Dont they just acquire land?
Kathryn Barber: Emily Campbell: Mcconnelldowell.com
Jemena awards key Northern Gas Pipeline contract toâ€¦
Emily Campbell: But mate BRK operates in US. How will pipeline in Northern Territory help?
Kathryn Barber: Read the Anns matey NT Fracking Ban Lifted
Kathryn Barber: This stock will be at 0.039 in no time now NT Fracking Ban Lifted!
Jocelyn Mckinney: Are you referring to BKP Kathryn Barber:?
Kathryn Barber: CTP,MAY,AJQ, EEG and BKP are the stock to watch now NT lift the ban
Kathryn Barber: Jocelyn Mckinney: Yes BKP
Emily Campbell: This is BRK thread mate Haha
Kathryn Barber: Emily Campbell: Oh!
Kathryn Barber: I need to Wear Glasses
Emily Campbell: All good mate. Love your enthusiasm Haha … keep it up!
Presley Fletcher: They only have $27k and debt of $5.2m. Cash out estimate next qtr $1.59m. They dont have money and will need CR soon. Wait for that before jumping on board. AIMO. dYOr.
Emely Ramos: Yep – needs cash fast
Jocelyn Mckinney: It appears that way but they have only just completed a CR for the acquisition of more land recently. They have interests in a lot of wells and an income with very little overheads. All money generated goes back into paying off the initial wells and loans. I think this is why the stock is a bit misunderstood. Check back over previous quarterly reports. 🙂
Emily Campbell: Yes they just had CR. Dont think cash is a problem.
Jocelyn Mckinney: To further clarify, last quarterly report, they had 9 wells producing – this quarter they have 12 wells producing of which they have a working interest in each. Many more wells to come online this year. They expect to have 2 million generated in net ca…See more
Emily Campbell: Jocelyn Mckinney: Im in BRK not my biggest holding though. This stock reaches you serious patience haha.
Jocelyn Mckinney: Emily Campbell: haha yes it does! It owes me more than the current price but I have faith in the FA. I doubled down recently as I believe it is way undervalued at the moment. Hopefully were on a winner!
Emily Campbell: Jocelyn Mckinney: good luck to us mate. Cheers.
Presley Fletcher: Jocelyn Mckinney: I dig it. Waiting for the bottom before jumping on-board if I still have capital (lots of losses these days). My question is, when do they stop acquiring and just keep producing? Cant sustain acquiring and acquiring without substantial cashflows that can benefit shareholders.
Jocelyn Mckinney: Presley Fletcher: they will keep acquiring land and plonking down more and more wells without a lot of production with the exception of some small percentages in each well to keep generating $$. The real value comes from the land they have acquired in the meantim…See more
Kyla Hunt: Might needs some toes Lane Guzman:
Lane Guzman: On it Rubster!
Jocelyn Mckinney: Starting to get interesting: Buy side is starting to build. POO price just cracked $70. More wells coming online very soon…
Presley Fletcher: Anyone holding options? I havent held any and considering them for brk
Peyton Foster: Where do you find strike price for listed options?
Presley Fletcher: Peyton Foster: I was asking commsec about it. Yet to receive a reply. Some are in here Ozstockstats.com am new to optios too
ASX – Option information, strike price, expiry and details.
Peyton Foster: Sweet cheers dude!
Emily Campbell: Strike price is $0.02 before December 2018. Stated in companys 06/04/2018 ann.
Angel Warren: So basically their market cap will be defined once they are taken over/sell the land and they will make a few cents on the dollar in royalities/workable percentage of the wells they work? With the cash they receive from land sales they will just rinse/repeat?
Jocelyn Mckinney: Yes, thats about the gist of it. They completed a strategic divestment to show the land values recently – sold 11 acres for around 28k per acre. Considering they now own the leaseholds for 3000 acres, this would put the land leased value at 84 million….See more
Angel Warren: And this would also need to assume that all land actually has to have oil underneath it?
Jocelyn Mckinney: Yes exactly – although they would certainly be doing their homework in this regard. It would be silly to lease land that does not have oil beneath it. They are also targeting much smaller acreages than bigger competitors so they would be zeroing in on the sweet spots.
Emily Campbell: When this cash flow register in next quarterly?
Jocelyn Mckinney: Emily Campbell: Id say next year would be more likely. Based on the previous well permits to completion, mid – late next year possibly for all wells currently permitted to come into production. That being said, their that are wells currently near completi…See more
Emily Campbell: Jocelyn Mckinney: yes patience is required with this one. I am holding heads as well as options. Hopefully options strike price is hit by December. Looks uphill if balance sheets dont start looking good. Fingers crossed.
Jocelyn Mckinney: Emily Campbell: the new wells and the price of oil (if it continues upward) should definitely see BRK over 2c by December imo. They are currently on track to majorly overshoot their 2 million cash flow projection for the year based on last quarters results …See more
Emily Campbell: Jocelyn Mckinney: Thanks for the positivity and best of luck 🙂 I will top up along the way.