$HOCL - Highwood Oil Company Ltd

 $HOCL -  Highwood Oil Company Ltd

About Highwood Oil Company:

Highwood Oil Co Ltd is a public oil and natural gas exploration, development and production company in Canada. The company's projects include Nipisi/Jarvie, Wabasca; and Red Earth Creek located in Alberta; River Pipeline located in Edmonton

Why am I bullish:

I am bullish on Highwood Oil because they are very undervalued! This company has improved a lot over the last year and all of their updates have gone unnoticed which I will bring up below! I like to use March and April stock prices as a bench mark in the industry. This hit a high of $23.25 in March on top of that it has traded above $15.00/share for last couple years. I strongly believe we will see new 52 weeks high with all the improvements the company has accomplished! First alerted at $6.50 currently trading at $7.15

Holders:

Insiders hold almost 77% of the shares and continue adding grant options at $16.50 in December and at $18.00 in November! No recent sells that i can see which is very positive!

Highlights:

December.21 2020

• Highwood is pleased to announce the successful closing of the Clearwater Disposition for $40.8 million . Proceeds will be used to repay amounts owing under the Company's previous credit facility and other working capital deficits. 
• Highwood is now positioned to achieve go forward shareholder value through a cleaner and less leveraged balance sheet.

December.14 2020

• Upon closing of the transaction, the Company is expecting an $8 -10 million pro forma operating facility and will seek to evaluate acquisition opportunities.
• Following the conclusion of the Company's strategic alternatives review process, Highwood emerges with corporate production of 100 bbl/d from producing properties in Western Canada, along with a 100% working, operated interest in the Wabasca River Pipeline System. expected to generate $4 million of base free cash flow in 2021.

November.26 2020

• Average production of 1,585 bbl/d of oil in the third quarter of 2020, an 82% increase from 870 bbl/d in the second quarter of 2020. Production in the month of September was 1,929 bbl/d as the majority of the Company's production has been restored with the slight improvement in commodity pricing.
• Current net production from Highwood is approximately 2,100 bbl/d of oil with production capacity of 2,300 bbl/d.
• Highwood continues to be encouraged by production performance in the Clearwater area, with net production reaching 1,108 bbl/d in the month of September, representing a new high for the Company.
• Highwood began negotiating the disposition of its Red Earth assets, signing a definitive agreement on November 13, 2020 to vend the assets to an Alberta producer for cash consideration of $2.0 million . The disposition will remove $31 million of undiscounted, uninflated decommissioning obligations from its schedule of liabilities, or approximately 90% of the Company's decommissioning obligations.

2020 Third Quarter Overview:

Highwood's third quarter results were highlighted by the increase in production from 870 bbl/d in the second quarter of 2020 to 1,585 bbl/d in the third quarter, an increase of 82% given the Company's decision to restore production with the slight improvement and stabilization of commodity prices.

For the first nine months of 2020, the Company had revenues net of royalty expense (including realized gains on commodity contracts) of $18.7 million compared to $22.9 million for the same period of 2019. Despite increased production capacity from the Clearwater play, 2020 was impacted by the sharp drop in commodity prices that began in March 2020 .

All information has been taken from Stockhouse.com, Yahoo.com and Ceo.ca