Gavin GrahamCenturion Energy InternationalCUX.TOBUYAug 08, 2005
Doesn't participate with the price of oil because it's an exploration play in Egypt and maybe Libya. It's a bet on how stable are their existing fields in exciting parts of the world. Cheap. It's one of the things you want to have in your portfolio because you could get the big 10 bagger move.
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.