Joanne A. Hruska, CFA
Bronco Energy
BCF-T
WAIT
Jan 04, 2008
Focused on heavy oil sands production. In the early stage of delineating their resources. Have about 8 wells planned for this winter and are in the early stages. Hoping to get 400 to 600 barrels a day from each of these wells. If they don't have what the market has factored in, there could be some risk to the downside. Suggests that you buy a basket of oil sand stocks.
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.