Hyperion is a publically traded, high growth junior oil and gas company resulting from the recapitalization of Triple 8 Energy Ltd. in July 2010. Hyperion’s business strategy is to grow through acquisitions which lead to lower risk, scalable and repeatable development of light oil drilling projects.
Last Price: HYX.V 0.33 [+0.02]
Shares O/S: 54.1 MM
Production (2011 exit): 1,500 boe/d (69% Oil+NGL)
Cardium Land: 35.77 net sections
Hyperion Exploration is the latest Cardium focused company to emerge thanks in part to their recent acquisitions. They currently own more than 23,000 net acres of land in Pembina, Buck Lake and Garrington, Alberta.
The company has a second oil play in Paradise, B.C where it assembled 9,000 acres net of undeveloped land prospective for Charlie Lake formation oil. This is a low risk shallow light oil play where each vertical well costs about $1 million dollar, produces 30-35 bopd with an EUR of 70k barrels of oil per well.
HYX assembled an inventory of 68 net drilling locations of which 56 targeting oil. The company is under the leadership of veteran CEO Trevor Spagrud who previously worked with Richard McHardy (current CEO of Spartan Oil) and built Titan Exploration from the ground up selling it successfully.
Hyperion is confident it will meet or exceed its 2011 operational guidance of an exit production of 1,500 boe/d (67% liquids) which is a 50% increase to Q2 production volumes of 950 boe/d. For the balance of 2011, HYX will be drilling 5.2 net Caridum HZ light oil wells which will double production from Q1 levels and increase NAV substantially as reserves get booked. If oil prices hold above $80 per barrels, netbacks will average more than $35 per barrel as oil production grows. I have a feeling the company will over deliver on its production because in my opinion they under promised.
(Obviously, I am sharing my opinion based on my investment thesis for this early play. There is no guarantee oil prices won’t crash or the economy doesn’t double dip before the end of the year or insert <unknown black swan> event. Patience is the name of the game as the company executes its program throughout the year)
Hyperion Exploration: Confident to Meet or Exceed 2011 Guidance (August 24, 2011)
Hyperion Exploration: Smooth Sailing Ahead (September 19, 2011)
Hyperion Exploration Likely To Exceed 2011 Guidance (October 6, 2011)
Hyperion Exploration Carries Strong Operational Momentum into 2012 (January 20, 2012)
I was not paid any fees to feature this stock. I am just sharing my research and I do not guarantee the accuracy of the information presented above. Please do your own due diligence before buying or selling any security.