Werner Muehelemann
Centurion Energy International
CUX-T
BUY
Apr 12, 2006
Not the cheapest stock out there but there is a lot of growth. They recently announced a joint-venture in an LNG project which will give them much higher prices.
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.