Sacramento, CA, Jan. 18, 2018 (GLOBE NEWSWIRE) -- A new report has been published on Advantagewon Oil Corp. ANTGF. Advantagewon Oil Corp. is a Toronto, Canada-based company that is engaged within oil exploration and production, which has operations across Texas.
The company focuses on low-cost and low-risk oil opportunities that will help build consistent cash flow. Using its enhanced recovery strategy, Advantagewon Oil Corp. seeks to increase oil recovery from 10-15% to as much as 75% for each well. The company utilizes this strategy across its oil pool in order to help maximize output and minimize the cost and risk.
The report provides an overview of Advantagewon Oil Corp., its oil properties/leases, financials, industry analysis, and more. The content also covers the outlook of the U.S. oil markets for 2018.
Goldman Sachs Forecasts Strong Oil Markets Throughout 2018
The oil markets have performed well over the past year, after several years of bearish fundamentals. WTI Crude Oil has seen one-year returns greater than 21%, as prices hit the highest levels since 2014. Another positive factor working for crude oil is the fact that institutional traders and commercial hedgers are continuing to increase their position sizes, which are both at new 52-week highs. The Commitment of Traders (COT) report can be used to watch the trend in the positions held by commercial hedgers and large speculators, which can help determine how "smart money" is positioning within the commodity.
According to a recent report from Goldman Sachs, the global oil markets are expected to remain strong throughout 2018 as the supply glut continues to be worked down. The investment bank is bullish on the prospect of strengthening compliance among Organization of Petroleum Exporting Countries (OPEC) to continue following oil production cut guidelines. OPEC has also announced it will extend its production cut program through the end of 2018. Goldman states that as global oil demand continues to strengthen and OPEC nations sticks to production cuts, we could see lower oil inventories by the end this year.
As a result of its forecast, Goldman estimates that the oil market will face steeper backwardation (near-term futures contracts are priced higher compared to futures contracts for a later delivery date).
"Greater backwardation will, in turn, provide long investors with positive returns despite a spot forecast near current levels and we forecast +9% crude total returns over the next 12 months," detailed the report.
Improving Market Fundamentals And Robust Oil Production Growth Have Advantagewon Oil Corp. Positioned For Success In 2018
Advantagewon Oil Corp. has two main oil properties in Texas: La Vernia, and Saratoga. The company holds leases covering 3,500 plus acres on the La Vernia field, 400 acres on Saratoga property. Currently, Advantagewon Oil Corp. has operational oil wells at its La Vernia and Saratoga properties, where the company has production costs of $11 per barrel and $12 per barrel respectively.
In July 2015, Advantagewon Oil Corp. appointed MKM Engineering with commissioning an independent NI 51-101 report on its Saratoga property. The independent report determined that the Saratoga property's proven and probable reserves have an undiscounted net present value (NPV) of $36 million.
Similarly, the company had a NI 51-101 independent report commissioned on its La Vernia acreage, which was completed by MKM Engineering in February 2017. According to the independent report, the company's La Vernia proven and probable reserves have an undiscounted net present value (NPV) of $96.70 million.
Recently, Advantagewon Oil Corp. released oil production numbers for December 2017, which saw 1,191 barrels of oil produced at a rate of 38.50 barrels of oil per day (BOPD) during the month. Management notes that as of January 12, 2018, it estimates that its current production rate is around 45 BOPD. This is a 10% increase from the company's production rate high of 41 BOPD that was reached in November 2017.
Overall, Advantagewon Oil Corp.'s low-cost, low-risk, and lean business model has helped the company survive and thrive during the recent energy slowdown. Furthermore, the company will look to continue expanding its oil production capabilities through further development of its properties and acquiring additional leases/properties. In December 2017, Advantagewon Oil Corp. closed a non-brokered private placement that generated gross proceeds of $637,000 CDN, which will be used for "both acquisitions and for working capital purposes."
For more information on Advantagewon Oil Corp., please visit https://www.aoc-oil.com and http://spotlightgrowth.com/index.php/2018/01/17/advantagewon-oil-corp-otcqb-antgf-cse-aoc-overlooked-low-cost-oil-producer-expanding-production-output/
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