Dome Energy is a US-focused E&P company producing net ~650boe/d with 1P reserves of ~7.0mill boe as at YE’18. The operations can broadly be divided into unconventional activities in the Illinois Basin and legacy operations, which span across a fairly wide range of operating regions and wells. The Illinois Basin is the core operating area.
If Dome Energy can ramp up its drilling activity, we see a substantial upside to our production estimates and NAV, as capex is the majority of the cost relating to the wells and incremental volumes are high-margin barrels.
Dome Energy is exposed to adverse movements in oil and gas prices. Given the current debt, the company’s ability to meet funding obligations depends on its ability to execute projects according to the schedule, and on budget. The reporting currency is SEK and as such Dome Energy is exposed to adverse currency fluctuations.