CEB Resources are an ex-mining company come investment / Oil & Gas enterprise (shell) led by the infamous David Whitby, not only has Mr Whitby had a plethora of success in major oil & gas he’s proven a quality steward in growing small cap companies with one common denominator, Indonesia. Having climbed up the ranks within the Oil & Gas industry Whitby found himself enrolled into a cultural romance with South East Asia. Throughout his decades operating in Indonesia David has found himself at the front of the pack running the negotiation of the subangas unitization for Pertamina the Indonesian state-owned Oil & Gas company which resulted in the addition of 10,000boed worth in excess of $200million per annum.
Often we see big oil operators struggle to manage with grit and determination down at the tier 3 levels however CEB’s front man appears to be more than adequate after his tenure as managing director of Australian based Nido Petroleum which rocketed from 1.6 cents (2004) to 60 cents (2008) giving a market capitalized growth of $5m to $600m in four years, after the team identified a suitable Australian shell company valued at $1.6m.
Lets not forget Davids roles at ConacoPhilips, Gulf Indonesia or Husky but more focus on today & tomorrow, we are regularly asked which resource stock do you like the most? The simple answer is which do we believe. Often AIM listed Oil & Gas plays have a stand up story although more often than not they each come to the same conclusion. ” Failure ” which arrive as ” Death by a thousand cuts ” or ” Poor management with fingers in the till ” some might say we have grown cynical however we prefer to consider historical fact and statistic when running the rule over a company.
A third of aim stocks have gone pop since the highs of the last 20 years followed by another third of aim listed companies having destroyed value secretion or creation. It’s fair to say showing a cautious eye has now become paramount although we are careful not to throw the baby out with the bathwater in CEB’s case.
In summary CEB are an early stage business that is merely on fleek with investors as they gently outline there future plans in Indonesia. Recently announcing:
CEB’s Managing Director, David Whitby, said, “We have hit the ground running and have already identified multiple opportunities that meet our key criteria, being onshore, active producing fields close to infrastructure where the core competencies of our team will have the greatest impact on increasing oil production. In tandem with the ongoing due diligence, we have held constructive meetings with a number of motivated sellers, with the targets being pursued providing asset depth required for the long-term value growth of the company. I am extremely pleased with the progress made to date and the quality and measure of the opportunities we have uncovered thus far have surpassed my initial expectations”.
By analyzing the structure, strategy and integrity of Whitby’s team both out in country (Indonesia) coupled to there JV partner Corsair it becomes blatantly obvious to investors and observers alike which way CEB are going, following the same charted path to previous successes. There are no guarantees in this business where the first cut can be the deepest however we hope savvy management choices anchored by meaningful relationships will help to steer them home.
” Nobody ever turned their nose up at a little lady luck & good fortune along the way either ”
Doc has spoken to David Whitby (Hear Doc’s most recent interview here) on several occasions which he reports back: ” I’m filled with hope & virtue at the potential of the selamat jalan in which CEB embark. There’s no exact science to selecting good companies although last September (2014) I met in London with investors as the CEO of a Junior O&G company bought a few rounds of drinks whilst sharing his vision, the result was a solid story in which they delivered significant gains to the share price. I believe CEB are at a different stage in the cycle although more than competent, containing as much if not more potential should they delivery results. I wouldn’t be surprised to see CEB at a big premium to todays share price in 12 months time.
At valuethemarkets we look to find interesting content from both hot topic’s and below the radar reviews, however more importantly translating risk against reward, which is often ignored by the bigger publications. We appreciate your ongoing support however urge investors to maintain a measured outlook across the markets.
