Update on "10x or Bust" Oil Producer Stock Idea

Distressed oil stock update: high risk, high upside potential.

So far on Bison Insights, I’ve shared 15 investment ideas, 14 of which have gone up since publication:

The one loser so far is #12. I first wrote about this company in March in a piece titled 10x or Bust: An Asymmetric Distressed Oil Company Idea in the Midst of Soaring Oil Prices.

So far, it’s been a bust. The stock is down 43% since I first wrote about it. My thesis was that the company had a good chance of completing a key refinancing that would remove a major overhang on the equity. That hasn’t happened yet, but its not over.

The company still has roughly a month and a half to complete the refinancing before the next major dilution trigger. If it succeeds, I think the stock could breathe again and begin to receive credit from the market for the value of its underlying assets.

The upside is evident - the latest PV-10 value from the company’s latest reserve report helps illustrate why I’m still interested in the stock:

I just left an energy conference where I spoke with management. They are focused on the refinancing, which left me encouraged, and I recently added to my position.

In this article, I’ll provide an update on the company’s Q1 results and share what I learned from meeting with management at the conference this week.

Disclaimer: This is for informational and educational purposes only. This is not an offer, solicitation, or investment recommendation. Please consult an advisor and do your own diligence. Past performance may not be indicative.