Spartan Exploration Ltd. is a uniquely positioned oil weighted junior. It has significant exposure to three leading resource plays, strategically focused in Western Canada.
Quick Facts (Q3 2010):
Q3 Average Production: 979 boe/d, 84% Oil + NGL
O/S: 41.5 million FD (management ownership 33%)
Land: 91k gross acres undeveloped
- 62,930 acres (43,307 net acres) in SE Saskatchewan prospective for Bakken and Mississippian; (light oil)
- 15,657 acres (12,900 net acres) in SW Saskatchwan prospective for Upper and Lower Shaunavon; (heavy oil)
- 12,480 net acres in the Pembina area of central Alberta prospective for Cardium oil; (light oil)
Q3/10 production:??+101% Q-Q.
Q3/10 operating netback: $42.11 per barrel +9% Q-Q.
Outlook (updated November 16 2010)
Spartan has exceeded its year end exit target of 1,800 boe/d and is currently producing approximately 1,825 boe/d (82% oil and liquids). For 2011 the company is expecting a similar capex program to 2010 which would increase average production to 2,000-2,250 boe/d. 2011 capex should be confirmed by the end of November or early December of 2010.
The Company has another 2 (0.95 net) Cardium horizontal wells that have been drilled, completed and are awaiting tie-in and is expecting to drill up to another 4 (3.75 net) Cardium horizontal wells prior to the end of the year.
For those amongst you who follow analyst ratings, here are the latest targets:
|Spartan Exp.||Stonecap||$5.90||$5.80||16 Nov 2010|
|Spartan Exp.||GMP Securities||$6.00||$5.50||16 Nov 2010|
|Spartan Exp.||Mackie||$5.00||$4.25||16 Nov 2010|
|Spartan Exp.||Clarus Securities||$6.50||$6.00||16 Nov 2010|
SPE is an excellent company to capitalize on Canadas hottest resource play sectors; The Cardium and the Bakken. Its oil weighting in this low priced natural gas environment is very profitable. Providing oil prices remain above $75 per barrel, the return on this company will be excellent in the near future as they successfully drill one well after another. In my opinion, at $3.45/share SPE is undervalued compared to many of its peers; I expect the market to weigh it properly in the near future providing we dont go through another crash.
I am currently a shareholder of Spartan Exploration. I was not paid any fees to feature this stock. I am just sharing my research. Please do your own due diligence before buying or selling any security.