Josef SchachterCenturion Energy InternationalCUX.TOHOLDMar 23, 2005
Have done a fabulous job of execution. Sold their Tunisian assets which they were having some problems growing. Involved in an Egyptian area that's very prolific. If they find the Jurassic and drill a well in Q3/Q4 through the crutaceous 10,000 meters, it could be a home run and a $100 stock. Would love to buy on a correction.
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.