International E&P firm Crudecorp ASA (OSE: CRUDE) has started trading on Oslo Axess today. The company acquires, develops and operates oil and natural gas properties with focus on old abandoned resources from which it aims to increase recovery rates using Enhanced Oil Recovery(EOR) techniques. The company was founded 5 years ago and merged with U.S. company STL Energy LLC soon after. Trading has been sporadic now at 8 NOK with the current market cap hovering around 720 million NOK, somewhat over 3 times its book value, with just over 91 million issued shares. The largest shareholder is YMIR ENERGY AS that holds just over 40% of shares.
Currently the company owns a 90% interest in Chico Martinez oilfield in California, which was discovered around 100 years ago. It lies next to South Belridge Field and Cymric Field. Crudecorp’s 640 acre property possesses an estimated 20-40 million barrels of recoverable heavy crude oil with 26 producing wells. The production from the field has historically been very limited. Crudecorp plans to develop the asset through a steam injection programme.
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