According to data from stock trading platform CMC Markets, oil stocks are winning big in the S&P 500 with an increase of over 100 percent thus far in 2022. If this trend continues and %OilStocks keep rising, investors with an eye for trends could reap great rewards from crude oil stocks.
Though there is concern about the global economy slowing down, Brent crude barrel costs currently sit around $92 – and have remained in the range for some time now. Added to that, OPEC+ reported a production cut at the beginning of October that should prevent prices from falling sharply even if major economies in the world go into recession.
At this point, some of the emblems that most benefitted from the rise in oil stocks are:
– Occidental Petroleum (NYSE: OXY) with 126.8% stock gains.
– Coterca Energy (NYSE: CTRA) with 61% gains.
– Hess (NYSE: HES) clocked 51.9% gains.
– %ExxonMobil ($XOM) with 58.4% gains.
On the horizon, the landscape looks increasingly ripe for sustained growth. This could be the sign of a great entry point to invest in the oil market, especially when scouting for early-stage prospects with high upside that are not on the same level as large producers yet. This leads us to %MarksmenEnergy : a %CanadianJunior ready to hop on the wave.
Introducing Marksmen Energy Inc.
Marksmen Energy Inc., ($MAH) is an emerging energy company that specializes in discovering and developing light oil assets in Ohio. Their objective is to tap into areas that are yet to be explored but that show high potential, with a track record of reliable and continous oil production.
The company aims to accomplish its objective by leveraging modern exploration technology in areas that haven’t seen much industry activity. The Marksmen Energy team has vast experience in oil and capital markets, and its crew is known for finding overlooked opportunities. The team is prepared to make MAH an industry leader in Ohio.
Ohio’s Untapped Potential
Marksmen Energy is planning to tap into areas with 140 years of historic oil and gas production from over 350,000 WILDCAT wells that have only been drilled on private properties by small companies. These areas are brimming with oil and gas, and there’s a multitude of local refineries in the region. Additionally, competition is limited since other operators interested in the area are open to joint venture partnerships.
Moreover, fracturing is not required for most of the wells in the area and they have a relatively long life expectancy of up to 20 years. Marksmen Energy has also been collaborating with a world-class scientific research company to introduce carbon sequestration in their operations.
Marksmen Energy’s operations in the area are exclusive since it’s the only public company that’s currently active in the area. However, there are more than 5,800 small and private companies operating in the area that lack access to capital. Here are a few numbers to paint a picture:
– Projected revenue growth between 2021 and 2023 is approximately 2,200%.
– BOE daily production is projected to reach 1,000+ by the end of December 2023.
– Currently, the operating netback per barrel is $65 – based on $100 WTI.
Fine-tuning the crosshairs
Close to the end of August 2022, the company got started in Pickaway County, Ohio, with three well development drilling programs in the Cambrian Knox formation. By October 7, 2022, these wells had been fully drilled and acidized, and swab testing was conducted. Each swab showed that there’s excellent oil on the surface pits/tanks.
These initial results are comparable with the best well the company owns, the Holbrook Davis #1 (HD1), which was drilled in July 2016, and is located in the same formation. This well produced more than 26,000 barrels of light sweet Pennsylvania crude. That’s 75 barrels produced every day in its first year of operation with a payout in less than 3 months. It’s still producing oil today – and the company expects the three new wells to be just as productive.
The CEO and President of Marksmen Energy Inc., Archie Nesbitt, shared his satisfaction with being able to drill three wells in such a short time. Especially, he added, considering that drilling rigs and other important services and goods are not currently abundant. He was pleased to report that the initial testing of the wells was completed and he looks forward to the way these wells will boost production and cash flow for the company.
Additionally, Marksmen is partnered with PEP Drilling LLC and they have fully reconditioned the Clinton Sandstone area of the Reese #1 gas and oil well, with Marksmen owning 80% of the business interest before payout. The well is currently producing gas and oil, but it’s still retrieving completion fluids
Marksmen is also partnered with Houghton Investments LLC. The two firms have a long-standing partnership. They’re currently in the process of drilling Cambrian Knox offset wells. Moreover, the Holbrook Davis #2 well has yielded the same logging and swabbing operations results as the HD1 well, so the company has a 75% business interest in it.
HD2 is quite an exciting project because there’s an upper zone that hasn’t been fully developed in any of the other wells Marksmen has in Pickaway County. The upper zone is thick and, when it was drilled, revealed significant oil flow. The zone is cased, isolated, and awaiting more exhaustive logging with a more advanced system.
The lower zones in HD2 have similar thickness and depth as other wells currently going through drilling and that will be soon logged and swab tested. Marksmen Energy Inc. has 100% business interest in the well until it covers 125% of capital costs. After that, business interest will be dialed back to 75%.
Privileged logistics, a knowledgeable team and major production potential with a low risk profile make MAH a potentially prime early-stage light oil play.
About Marksmen
Marksmen Energy Inc., (TSX.V: MAH.V) an oil and natural gas company, engages in the acquisition, development, and production of crude oil from properties in Ohio, the United States; and Alberta, Canada. The company was formerly known as Marksmen Resources Ltd. and changed its name to Marksmen Energy Inc. in August 2010. Marksmen Energy Inc. was incorporated in 1997 and is headquartered in Calgary, Canada.
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