Granite Oil Corp (GXO.TO)

Bought this recently because he felt the stock got too cheap. US investors pile into Canadian stocks, and then exit in a less than graceful way. He had felt that one of the top shareholders was liquidating their position, so he used the weakness to Buy. Delivered over 40% per share growth through light oil over the last number of quarters. Have a significant inventory in 2 core plays that should give them a depth of low risk development drilling for years to come. They have done this with very modest debt levels. Trades at just over 4X on a debt adjusted cash flow basis.

Rock solid balance sheet and wells are getting better year after year.

Not a top holding. It is oil weighted. If it pulls back around $9.50 it has strong support.

(Top Pick Apr 30/13, Up 28.70%) Has been blessed with some wonderful oil assets. He took some profits.

Struggles with this because they have just been knocking the ball out of the park. The reserve report is probably going to be top decile. They grew production and reserves much more than he feels the average consensus was, by about 10%. His only struggle is that they’ve now broached the 10,000 barrel a day mark because they’ve been so successful and drilling production, and because of their high declines, it is becoming more challenging to sustain the same growth rate. They believe they can add 1000 barrels per day of production per quarter, but the execution risk is starting to creep up. If the stock fell back into the mid-$8, he would be buying.

(A Top Pick Nov 2/12. Up 34.5%.) Still very positive on the company. They know how to find oil in locations where others have struggled. Payback on new wells has been quite significant. Earnings are expected growth from $0.35 in 2000 to $0.68. This is against the PE of 13.4 times.

Have done a good job finding two big oil pools. What they need to do now is to grow production and she thinks they can do that. Balance sheet is good. She hopes they will get taken out as soon as they prove it out.

Has been a huge winner. Team did a fantastic job of identifying not one, but 2 huge light oil plays. When the stock hit around $9, the risk/reward was not as compelling and he sold his holdings. Approaching the 10,000 barrels per day mark, which, historically for a company, creates major logistical issues. He would like to buy back in the mid-to high $7’s.

(A Top Pick April 30/12. Up 9.06%.) Thinks the company has even more coming. Just released their 2^nd quarter, which was very good.

One of the best performing stocks he has owned. Execution by management is top decile, if not top of the entire sector. Has some excellent play potential in the South Alberta Bakken and their Brazeau area. In the last 10 quarters, they’ve grown from 500 to 7000 BOE’s a day. That kind of production curve is hard to find these days. Think they will grow to 9000, possibly 10,000 BOE’s. Possible takeover candidate.

Found a very large new resource in the Alberta Bakken. Management has done extraordinarily well and have taken to buying some other assets that were underexploited and have knocked the ball out of the park in development wells. $12 in 12 months.

Exposure to two emerging oil plays. Well costs are reasonable. Ability to demonstrate recoverable reserves of 50+ million barrels. Expecting an increase in guidance.

(Market Call Minute) Southern Alberta. Continue to marvel at their lands and bring in nice light oil.

(A Top Pick March 30/12. Up 64.41%.)

(Market Call Minute.) Likes this. Would like it at $6.50. Possible takeout later this year. Have 2 great light oil plays.