Josef Schachter
Centurion Energy International
CUX-T
PAST TOP PICK
Apr 12, 2006
(A Top Pick Sept 26/05. No change.) Massive land spread in Egypt. Been spending a lot of time on facilities which are coming on now. The big thing is the exploration in front of them. Have 3 rigs working. Exploration will get oilier.
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.