Oil Junior Somehow Ekes Out Tremendous Gains in 2021

July 15, 2021 03:37 PM PST

Image source: Edgar Lee Espe, shutterstock.com

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Decklar Resources Inc. (TSX-V: DKL) Term Sheet

  • Type of financing: Non-brokered
  • Gross proceeds: $4.72 million
  • Number of units: 16.87 million
  • Price per unit: $0.28
  • Closing date: 03/08/2021
  • Today's closing price (July 15): $0.89
  • Share appreciation: 235%
  • Warrants: None
  • Net ROI w/ warrants ($100k investment): $235,714

 

Somehow, despite everything, junior oil investments are still managing to occasionally eke out returns in 2021. Back on March 8, Decklar Resources closed a $4.72 million private placement, selling 16.87 million common shares—without any warrants attached—for 28 cents each. As the financing goes free-trading this week, investors in that deal can enjoy a 235% appreciation from that price.

Proceeds from the deal are being used as the company works to re-enter the Oza-1 well in Nigeria, which Decklar hopes will turn it from an oil explorer to an oil producer. 

Shares of the company rocketed following the company's initial update on this re-entry campaign, and haven't declined much since. Time will tell whether the company's strategy of "consolidating and re-establishing production of high-margin, proven undeveloped conventional oil fields in Nigeria" will pay off in the long run.

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