Andrew McCreathCenturion Energy InternationalCUX.TOWAITFeb 18, 2005
Had a big run over the last year, but an incredibly large run in the last week or two. Have a couple of mini-elephant wells they will be drilling this year. There'll also be a material increase in their oil production. What is really getting the stock going is the perceived buy-out of First Calgary (FCP-T) and this company will be next. Wait for it to settle down.
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.