Peter HodsonCenturion Energy InternationalCUX.TOTOP PICKDec 20, 2004
Had a huge run with a lot of attention when it was added to the TSE. Assured production growth. Right now at 15,000 barrels equivalent and can go as high as 48/49 by the end of next year if they have some good production/exploration success. Good management team. If First Calgary gets sold, this company will get the benefit of money moving. Intend to own for a good 6 months to a year minimum, but would trade around positions if it decided to spike up.
The company has had execution problems. If they can overcome these problems there will be an upside. At $7.00 it is a buy and he recommends buying it. Target price is $15.00.
Has dropped because of 3 dry and abandoned wells. Going to try and get bigger, stronger casings that can handle the pressures. Going to restart in Q1. With their 32,000 BOE's a day should do about $1.35 annualized cash flow. Under $6, it is very cheap. Buy in Q4 of 06.
Chart is pretty ugly on this name. 3 of their Algerian wells will need specialised equipment that won't arrive until September. Avoid it until you have a better feeling of the direction where things are going.