Josef SchachterCenturion Energy InternationalCUX.TOBUYAug 02, 2005
September, they get 4 rigs coming in, 2 more than they have right now. 2 will be exploration focused and 2 will be development focused, so starting in September they start having a lot more activity. In October, the news window starts picking up. Buy on wewakness.
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.