David BurrowsDuvernay Oil CorpDDV.TOTOP PICKApr 18, 2008
Stock has come a long way in a short period of time, but they are involved in the play in B.C. called the Montney, which by many views could be as much as 17 PCF trillion cubic feet of gas. Increased their proven and probable reserves by 47% last year. You are getting growth and lower finding costs. The lower royalty regime on deep drilling helps them on 65% of their properties.
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.
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.
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.
Large acreage in the Montney B.C. area. Management has always been extremely successful. An excellent acquisition target, possibly by Talisman (TLM-T).
Probably the best managed oil/gas company in Canada. Has unconventional gas, which means that the degree of certainty is much higher. Should continue to do extremely well. Trades at a premium to others, but deserves it.
Success in North East Alberta and BC. Lot of upside. One of the more aggressive plays in Natural Gas. Possible acquisition target. Upside in the resource and in natural gas pricing. Thinks it’s going higher. Natural Gas will be higher in 12 months.