Peter Hodson
Centurion Energy International
CUX-T
BUY
Jul 26, 2005
He is currently buying this stock. Market is a little bit bored. The company is at full production and they're waiting for some additional pipeline capacity and some government contracts. They will easily do 24,000 barrels equivalent a day this year. They don't have a big well to be drilled until mid-September.
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.