David Cockfield
Duvernay Oil Corp
DDV-T
BUY
Nov 25, 2005
This company has continued to deliver, and the deliver, and deliver. They have a good programme this winter. Always seems to move up another 10/20% every time he goes to buy. Had significant weather problems in Alberta, in the 3rd quarter. It will continue to move ahead.
Have a very substantial position in the Montney play in British Columbia, which has better royalties in the gas production than in Alberta. Good management and good assets.
2 key things going for them. 1) Very strong pricing in the commodity and he feels natural gas is going a lot higher. 2) Good production growth. Have exposure to the Montney play in Alberta/B.C. Could be a takeover.
Massive gas company. Acreage is among the absolute top deciles in gassy plays in the Montney region. An expensive multiple stock but the growth profile is an extremely impressive.