Jennifer Stevenson
Highpine Oil & Gas
HPX-T
SELL
Jun 01, 2009
(Market Call Minute.) Oily but hasn't done anything. Balance sheet is clean and they have lots of cash and has everything going for it but the market has not rewarded it and you can get more traction elsewhere.
Very cheap gas company. Didn't participate in the big upswing. Was disappointing over the last couple of years. Debt is okay and production is okay. Worth owning because it is so cheap.
Has been a value trap. Very cheap. What are they going to do with all the money they have? Should've made acquisitions last year. Trying to drill their biggest play in the Pembina Nisku formation but cannot drill because H2S levels have been too high.
Some interesting drilling prospects. Far too cheap to not be owned. Trigger to sell is when they get drilling success. If they keep delivering on a quarterly basis, then valuations should tend toward peer group average.
Being acquired by Daylight Energy (DAY.UN-T). If you own, take the shares rather than the cash. Daylight has put together a beautiful spread of land in Alberta and using the multistage fraqing technology they have successfully used elsewhere.
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