Undervalued Energy Basins
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Energy Small-Cap Investment

Certain smaller energy companies (generally with market capitalizations below $100 million) are undervalued. Nova Atlantic takes significant partial ownership of these Companies in partnership with Energy Capital firms. We work then to build the investment and broaden the scope of projects available for these Companies. Our primary focus involves stranded natural gas reserves, but can also include inefficient capitalization structures, and/or Companies with low Enterprise Value multiples. We build value by changing strategic emphasis, restructuring Balance Sheets to achieve growth, and by applying new development trends to existing reserves. Technology such as Floating LNG, Methanol derivatives, Integrated Field Management Analysis is used.

In a related effort, work is also done to re-enter Natural Gas fields which have been "prematurely” abandoned are also being undertaken. This, generally, relates to taking over for efficient Operators who have withdrawn from certain fields due for economic reasons such as high unit-cost platforms, high marginal tax rates, and/or lack of scale necessary for new reserve development. Nova Atlantic endeavors to share the value of old field redevelopment through sharing of added reserve value with the original License Holders.