Stockchase Opinions

Michael SmedleyCenturion Energy InternationalCUX.TOWAITMay 10, 2006

Dropped on news that 3 of their Egyptian wells have been abandoned. Wait for further news before buying.
$9.26

Stock price when the opinion was issued

oilgas
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PAST TOP PICK
(A Top Pick Jan 11/06. Down 4.8%.) Has been acquired.
HOLD
Gas in Egypt. Has gone through a troubled time. There is reasonable speculation going on that there might be someone else to make a bid.
SELL
Normally, the stock would trade at $12.25 if the market thought there was a chance of another offer. Feels there’s a very low chance of another offer.
PAST TOP PICK
(A Top Pick Nov 11/05. Up 13.8%.) Being acquired at $12, which is a fair bid.
BUY
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.
HOLD
Changed the operating chief. Not a favourite buy at the moment.
HOLD
Starting to improve again. It has to come with bigger and better results. Will have to share a light of its production with the Egyptian government.
HOLD
For a prospective development, it looks very promising. Doesn't follow closely but isn't a big fan of foreign entities.
WAIT
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.
DON'T BUY
Drilled some dry holes and there is some worthy now that if they drill a couple of more, then Shell International would pull out of the project.
SELL
Haven't liked the deals they have signed with the Egyptian government. Have done quite well with their drilling programs until recently.
DON'T BUY
When you are in some of the foreign countries, you have to be very careful of the risk profile.
SELL
Have drilled some dry holes and the stock price has reflected that. Valuation is too high.
DON'T BUY
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.