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.
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.
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.
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.
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.
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.