Peter Hodson
Arawak Energy Ltd.
AAK-T
WAIT
Mar 27, 2006
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.
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.
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.
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.
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.