John O'Connell, CFA
Bronco Energy
BCF-T
TOP PICK
Dec 10, 2007
Rapidly growing production profile. No debt. Exiting next year at 10,000 BOE a day. Could drill 300 or 400 similar wells in the next year. Not affected by the Alberta oil review program.
Had experienced some delays and facilitate constraints in production. The play itself makes a lot of sense. Could get to $15-$16 on success of execution. If you believe in heavy oil and the differential, which is very narrow right now, management is one of the better ones.
New management team raised a convertible debenture. An issue would be their asset base. It will be a struggle as other companies have tried to drill it up but have abandoned it because of too much water.