TPD's market cap is around $6 million, which is less than what they have in the bank, and they're debt free.
TPD's management has a history of being great at getting oil out of the ground (admittedly, a poor record of selling acreage, but that doesn't seem important now - they're now playing a game of proving up land and producing oil, not selling acres)
TPD holds over 15,000 net working acres in two great areas of Texas. This is a brilliant asset on top of their cash which itself is over the market cap!
TPD already has production of 27 BOPD from existing wells on their land. This isn't much, but for a company so small in terms of overheads and market cap, it is considerable in terms of funding general company expenses.
Currently, TPD is looking at 79 potential undeveloped well locations, with the possibility of there being more. Estimated NPV is around $3-9million per well.
To me, the above is compelling, particularly the first and last points - market cap of around $6 million, 79 well locations of average estimated NPV around $5 million.
The obvious downside is that TPD only has enough money in the bank to drill one well, and if it happens to be a duster they'll need to search for some funding in a situation of putting their hand out to to fund something unproven (which will be possible but obviously not ideal). On the other hand, the team is experienced and looking at a low risk strategy rather than highly prospective exploration so with any luck this won't be necessary. Of course, even if every well is a success (which won't be the case), they're going to need to raise capital which will probably cause dilution. Even so, it would take a heap of dilution to tip the balance.
The upside is certainly considerable if everything goes to plan!
TPD is a new company, under the radar, and many (most?) holders have their shares simply because they were handed them as an almost afterthought in the TXN demerger. If the first well they drill goes well it should certainly bring some attention.