Blackbird Energy Inc (BBI.V)

Too small and there is too much uncertainty around the prospectivity of their acreage as well as their competitive edge in completion technology, which he thinks they have a 10% interest in.

A natural gas exploration company. It’s relatively early in the development stage. Has very good land acreage in the Montney play. It has shown good promise, but had little set back in applying technology last quarter. They’ve fixed that and are moving forward. The next step is to demonstrate that they are able to use their technology and hit big reserves again. A bit of a wait and see, but the upside is clearly there.

A great little small cap in the energy sector. They own a nice block of land in the Montney, and have done a good job of moving the story forward. Drilling a number of wells this year, and tying in production.

He is very, very disposed to management. They have a spectacular land package and some very recent decent drilling results, but haven’t been in production long enough to establish a decline curve. He is waiting to have enough data so he has an excuse to Buy it. Good management.

Not his normal kind of stock to own, being about a $400 million market cap. A gas producer, producing about 2000 barrels of oil equivalent. Has a great land spread in an area that doesn’t have a lot of activity, so they are pushing the boundaries. They have to de-risk a large land base, which continues to grow. He likes the name and owns it in some of his specialty funds as well as his mainstream funds. This is going to take time. It has been a great performer. Thinks the next 18 months is going to be critical. They have 4 wells on production and has a well program that is fully financed to drill at least 6-10 wells in the next 18 months. He is expecting to see some good results.

They have been acquiring assets. They are surrounded by the big boys. They do a lot of their own drilling. They have cash on the balance sheet from an equity raise they did to do some drilling. She thinks it will likely be taken out.

A gas exploration company focused in the Montney, Canada’s premier gas play. A really good land package and have been working on it for a few years. They finally translated some of the exploration results and have the prospect of getting into production. One issue is access to market. They’ve made some arrangements, so that is coming. This is for people who can take a bit higher risk.

Has a property in Grand Prairie Alberta, where there are liquid rich discoveries. It’s in the Montney play. All the big players are operating around them, and they are in the donut hole. Just tied all their production in recently, so cash flow is just starting up for them. They also have a lot of infrastructure that they bought, and have been acquiring other land. They will get taken out at some point. There is still upside to this company.

They’ve put together a great land package in the Montney in Northern Alberta, a very profitable play. The gas play contains a lot of liquid condensates which can be sold at a premium. They are in the centre of a hot play where companies like Encana (ECA-T), Nuvista (NVA-T), Seven Generations (VII-T) are all around them. This is in the early stages as they have only drilled a couple of wells and are just starting to bring it onto production now. Cash flow has just started to come. Feels the company will get taken out. Fairly inexpensive.

A small emerging Montney producer. He made a small flow-through investment in this company. They have a little over 87 sections of land in an area called Elmworth Pipestone. At Encana’s recent investor day, they highlighted the emerging potential of Pipestone. For a multi-billion dollar company to highlight this, this is a company that has material exposure. For a company this size, it is interesting because of Encana’s interest in this play.

He likes this, but it is speculative. A few years ago they acquired a massive land package in the Montney, a liquids rich gas play. A number of competitors, such as Encana (ECA-T) and NuVista (NVA-T) started making big discoveries around them. They’ve drilled a couple of wells and had some early results. Brought in a new drilling technique which has brought down drill costs dramatically.

She doesn’t own this, because it is essentially a land bank. It is in a good neighbourhood, and could eventually do well. They are going to be drilling a few wells and get some results. If you have a small position, she would hold onto that just for the news flow. She prefers more free cash flow generators.

This would be considered a real estate play of Canadian oil/gas. Has a big land spread in Western Canada in the Montney region, but not a lot of production. The stock has probably doubled in the last few weeks, and thinks it was off the back of enthusiasm on transactions like the one between Seven Generation (VII-T) and Paramount (POU-T). Any time there are these big splashy Montney transactions, you can take those multiples and apply them to a very land-rich production-poor company.

This is a unique one, an early stage Montney player. It is very hard to get into this area because they are very expensive wells and you need a bit of critical mass. The company is relatively well capitalized. Higher risk because of its size.

A pretty interesting little company. Drilled a couple of very expensive, very high impact wells in the Elmworth area near Grand Prairie, and he understands they had fairly good success with these wells. However, the market didn’t view it as that successful, because they didn’t immediately tie these in. It really starts to delineate the property. Just announced a new summer drilling program where they are going to drill a couple of more wells. Thinks they will eventually get acquired, because they don’t have the cash to continue these expensive wells.