Robert Floyd
Ivanhoe Energy
IE-T
DON'T BUY
Oct 12, 2007
They are looking at some new processes for drilling. Has a decent profile of individuals on its board and decent operators. Company hasn't done much. Numbers have not been terribly robust.
Has technology to upgrade heavy oil which will increase the oil's value by $20 to $30. Once they have one proven success then they can cookie cutter it to other companies. They are keeping an eye on the story.
Recently announced buying Talisman’s (TLM-T) heavy oil assets. Have technology for treating heavy oil. If it works and can use it in more than the Talisman’s project it could be a big home run. Would like to see this proven before he buys. (Maybe at $5 with a run to $10.)
Have the Ivanhoe upgrading technology in the oil sands. Also have an impressive land base in the oil sands. She likes to play upgrading technologies as a portfolio in order to spread the risk. These would include Opti (OPC-T) and Petrobank (PBG-T) and Ivanhoe (IE-T).
Has technology for upgrading high sulphur oil. Interesting technology for future years when oil starts to take off. Still early. Have some heavy oil assets around the world but he would wait and see.
Elephant hunters! You have to almost put fundamental analysis on the shelf. Look at only how much the wells will cost to build and what is the upside. Recently announced a couple of nice gas discoveries. Would rather have it when he has full knowledge of what they’ve got and pay more for it.
Not a lot of upside on this story. A bit of a grab bag on technologies and areas it is producing from such as California and Mongolia. It's all over the map. If you own, ride it up a bit and then start selling it.