Magnum Gas & Power (ASX: MPE)
Magnum Gas and Power (ASX:MPE) is set to spud the Tulainyo-2 appraisal well by mid-October — just days away.
This appraisal well will test the commercial potential of the Tulainyo Gas Project, which has been independently assessed to host up to 6 trillion cubic feet of recoverable gas.
Based on current prices, this project has a potential in ground value of $6 billion USD.
Given its work to date, MPE thinks that it has a 50/50 shot of achieving a successful flow of gas to surface at commercial rates.
MPE is currently capped at less than $20 million, and with a 20% stake in this project, the size of the potential prize to the company is $1.2 billion.
That small market cap along with the potential to significantly disrupt the supply-demand dynamics of California’s natural gas industry, this tiny stock could make for a remarkable entry point into the oil and gas corridor.
The information on this page should not be the only trigger for your investment decision. Click on the link below for a more in-depth and informed examination of the company. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Spudding of MPE’s much-anticipated appraisal drill in the Sacramento Basin is due to begin in a matter of days.
A flurry of news flow is anticipated over the coming weeks and months, including the Tulainyo-2 drilling itself, log results, and gas flow-rate data. All of these are potential share price catalysts that could well command investor attention.