Glenn MacNeill, P.Eng.Centurion Energy InternationalCUX.TOBUYOct 20, 2005
An international company and their properties in Egypt are very good. Had expected they would be able to tie in their production a little sooner than the numbers are indicating. Likes it, but he is more focused on domestic assets. Because it's foreign there is an extra risk. Has some good prospects in front of it.
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.