Corridor Resources: CSEM Survey Almost Underway

Electromagnetic Geoservices ASA and its wholly owned subsidiary Electromagnetic Geoservices Canada Inc. (together, “EMGS”) have initiated preparations for carrying out a pre-funded multi-client survey west of Newfoundland, Canada. The survey represents a minimum level of revenues to EMGS of approx. USD 2.5 million.

The survey is expected to be executed in the fourth quarter of 2017.

EMGS Press Release

Corridor hired EMGS, from Norway, to do the study. The work amounts to C$3.3M, as disclosed previously by Corridor.

The study is almost underway. The vessel Atlantic Guardian is sailing to the Old Harry site. The vessel crossed the Atlantic earlier in October. It was moored of St-John’s until last week when it sailed to the Gulf of St-Lawrence. It is now off the coast of Nova Scotia, near Cape North.

Atlantic Guardian Location November 11

Source: MarineTraffic.com

There were many studies realized throughout the years in the Western Newfoundland and Labrador Region (Petro-Canada, Mobil Oil, Marathon Petroleum, Talisman Energy, BHP Petroleum, etc). Petro-Canada wasn’t far from the underground structure in 1981.

Petro-Canada Survey 1981 November 11

Source: C-NLOPB

Corridor has done a very similar study in 1998.

Corridor Resources Survey 1998 November 11

Source: C-NLOPB

The focus was on the Western structure of Old Harry, in Quebec’s territory. This time, Corridor will focus on the Eastern structure.

Corridor has now C$47M in working capital, or C$0.53 per share. I am still holding a reduced position in Corridor since Value Digger’s article on August 3.

Disclosure: I am long CDH. Not for republication on Seeking Alpha.

Corridor Resources: The Numbers

Here is what happened since we know that Hydrocarbons Anticosti LP is negotiating with the government.

CDH StockCharts.com April 12

Source: StockCharts.com

Corridor’s (CDH) stock went from C$0.42 to close at C$0.45/share at 5.5X average volume for total upside of C$2.7M.

PEA StockCharts.com April 12

Source: StockCharts.com

Petrolia’s (PEA) stock went from C$0.14 to close at C$0.18/share at 7.0X average volume for total upside of C$4.3M.

These gains have evaporated since.

Disclosure: I am long CDH. Not for republication on Seeking Alpha.

Portfolio Update: Aggressive Moves To Start 2017

Here are my trades to start the year:

  • I added to my position in Amaya (AYA). Indeed, bad names will stop appearing in bad actor clause negotiations now that both David Baazov and Daniel Sebag are gone. Plus Amaya’s operations are coming out as very strong.
  • I bought back shares in Corridor Resources (CDH), as you know. It’s now or never for Corridor to move west and grab assets on the cheap before oil heads substantially higher. I need to go long before reading about the acquisition in a press release.
  • I added to my position in MEG Energy (MEG) after the company announced a major refinancing plan.
  • I added to my position in Painted Pony Petroleum (PPY). The company is still undervalued despite being up 60% since I bought it nine months ago.

I also went long lithium by buying all the junior exploration companies operating in Quebec: Critical Elements (CRE), Nemaska Lithium (NMX) and Natan Resources (NRL). I’ll let you know shortly how I narrowed it down to those three companies.

Disclosure: I am long AYA, CDH, CRE, MEG, NMX, NRL, PPY. Not for republication on Seeking Alpha.

Corridor Resources: Unloved, Unknown, With 2 Golden Options

  • Corridor’s natural gas business in New Brunswick will be profitable, despite the moratorium.
  • The company has a pristine balance sheet, with no debt and over $23M in cash.
  • It has a quick ratio of over 29, which indicates absolutely no financial pressure in the short term.
  • The market is completely ignoring the tremendous Old Harry and Anticosti Island prospects.

Click here to read the entire article on Seeking Alpha.