Bill Harris, CFACenturion Energy InternationalCUX.TOHOLDMay 11, 2005
Pieces are moving so fast in this company, this is real exploration drilling in northern Africa. It is moving so fast that he would put a value somewhere between $10 and $14. Has no idea where it's going as there is no real value in what they are doing. They are spending a lot of money and he hopes they'll find something.
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.