Jennifer StevensonOpen Range Energy Corp.ONR.TOTOP PICKJun 19, 2008
Natural gas. Small company of only about 2000 BOEs a day. Have a great play at Ansell/Sundance. Great long life growth play. Also have a play in Russ (?) on the front edge of the foothills which is deep drilling and expensive. Have drilled the well but it has not been tested, which is the risk.
(A Top Pick June 8/11. Up 170%.) Spun out Poseidon Concepts (PSN-T) and this company’s shareholders got 88% of the Poseidon in addition to the remaining gas assets in Open Range. On a gas recovery he would get more bullish on this name.
Dry nat. gas producer. They made the decision that they would cut back on drilling in Nat. gas. Will drill liquids rich wells. Trading cheaply on reserves and on cash flow basis. Doesn’t have appeal. Dead money for the next 4 to 5 months.
Spun out their tank business, which is why the stock price has dropped. Company is about 90% gas. They can make money with the present gas prices and they produce about 4600 barrels a day and will be exiting at 6000 barrels a day. A lot of great growth and is reasonably priced.