David Cockfield
Centurion Energy International
CUX-T
DON'T BUY
Apr 21, 2005
His big concern is that it's a company operating in Egypt and had some high international risk to it. It's a one-story company and you can't cooberate the story effectively.
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.
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.