Three-peat, is a trademarked term by LA Lakers, Pat Riley during their attempt at a third consecutive NBA championship during the 88-89 season. Although unsuccessful in their attempt that season, the term quickly became synonymous with winning and success. The genesis of the term was sports but a three-peat in business may be just as significant. Three consecutives wins for an oil exploration company is clearly a three-peat with three oil discoveries in the past 60 days.
While oil discovery news is a compelling driver for investors, case in point, ExxonMobil and their announced discovery offshore Guyana. How does the investor value each discovery? Exxon is still hampered by high debt and low expected production growth — only 1% compounded annually between now and 2020, analysts estimate.
So why is this micro cap oil discovery company’s three-peat so significant? Low debt – low cost conventional shallow drilling – historically prolific fields and already pumping oil.