Stockchase Opinions

Peter Hodson Arawak Energy Ltd. AAK-T HOLD Nov 17, 2005

The international oil game is still very much intact from the fundamental point of view. Drilling results are decent. Valuation is decent. The sector's rolled over a little bit. Have some great assets in the right areas of the world.
$1.210

Stock price when the opinion was issued

oil gas
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BUY
Likes the management team. Required to do a work commitment to secure the licenses of the development fields and that is now down. A solid long-term play. Maybe quiet for a while.
BUY
Very active in the whole Caspian Sea region. A potential doubling of the gas flow that they thought they would have.
BUY
Ultimately, this is the whole Caspian Sea, whole central Asian story which is being rediscovered. Sees nothing but potential upside for it.
BUY
Stock is down, so opportunity knocks. Has serious production which should grow. Has very important international shareholders. Decent cash flows.
BUY
In the Caspian Sea area. Has done pretty well in the last 2/3 weeks. Has fairly good production and is starting to meet its targets. The biggest issue has been geopolitical uncertainty.
WAIT
Great management team. Nice asset base. Has done so well, then it has to take a pause. Nothing wrong with the company. It just has to settle down for a while.
TOP PICK
Oil play in Kazakhstan. Producing 7000 barrels a day. Stock is discounting that they are going to do 12,000/14,000 next year. Will be a low-cost producer with a pipeline in Kazakhstan.
TOP PICK
Has gone sideways for 2 years. Oil production in the former Soviet Union. Hates to go to that part of the world, but this is a very clean story. They have the ability to triple production over the next 3 years. Expects 1st quarter 09 the pipeline will get hooked into their fields.
PAST TOP PICK
(A Top Pick Jan 17/08. Down 57.6%.) Was trading at 2X cash flow. Very cheap if the world had worked out all right. Major shareholder bought them out.