Thoughts About Serica Energy

Serica Energy (SQZZF) provides some interesting black swan optionality.

Mkt Cap = $53MM
EV = $29MM
2P PV10 = $100 million

The 2P PV10 value is for non-producing assets in the North Sea.

Giant Cretaceous Oil Prospects offshore Namibia are 'free'.

Prospect B is mapped on 3D seismic and high-graded for drilling
C.O.S. = 16%
P90 resources = 138 mmbbls
P50 resources = 662 mmbbls
P10 resources = 2810 mmbbls
85% working interest (undoubtedly will be farmed down)

This looks like dead money for a while, but I will definitely keep tabs on this stock.