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Stockchase Opinions

Bill Harris, CFAPetrolifera Petroleum Ltd.PDP.TOWAITMay 24, 2006

A fantastic project based in Argentina. Came out very cheap, but is now at a price were it has to prove itself. Argentina is a very difficult working environment.
$9.20

Stock price when the opinion was issued

oilgas
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HOLD
Hard to see it going much higher with the decline rates in some of their fields.
WAIT
Cautions investors about offshore assets. Go to stocks that pay dividends or distributions.
COMMENT
Has had a lot of success in Argentina initially and are now branching out into Peru, which is relatively low risk politically. Has been significant success in the South American countries. There is always an issue of access to market. Enough pipeline capacity? Prospectivity is there and is quite exciting.
DON'T BUY
Have done very well with the drill bit. Their problem is Argentina, which is using extortionist tactics that when oil gets above $45 there is no payday so netbacks are very low.
BUY
(Market Call Minute.) Growing their production very dramatically. This stock got whacked with Argentina’s higher royalty regime. At this stage, probably not a bad Buy.
SELL
Wouldn't be a big buyer of this name. Thinks it is an execution risk. Active in Argentina, which recently put on some export controls, which would cap the upside on what people could get for the commodity.
HOLD
Have been having some interesting discoveries in Argentina. Struggled this year because of lower success in exploration and Argentina legislative issues towards oil/gas. Prefers others such as Oilexco (OIL-T), Pan Orient (POE-X) and TriStar Oil (TOG-T).
WATCH
5 million acres in Peru and are hugely prolific. Hd great success and know what they are doing. Doesn't seem to get the respect it deserves. Would rather buy after they have had some success and then buy the rest of their acreage as opposed to the first one.
BUY
Have a 55 well program planned. Have new rigs coming in and will then you will see one well a week coming out. Internally financed. 20,000 barrels a day.
WAIT
Had a lot of hope built into it, but it turned out the costs were a lot higher. Wait for another quarter to make sure you get more news and that it is fully digested.
HOLD
Some exciting stuff in Argentina. Has a little dispute going on over ownership.
BUY
Have had some pretty good success and then their last well wasn't as successful. Bottom line is, these are cheap wells. Have a huge acreage program in Argentina. Fully funded and don't know what to do with the cash flow that's coming in.
WEAK BUY
Just had a positive press release on some of their Argentina drillings. Big wells. Dramatically growing their production. Foreign holding costs and royalties can be higher, so do your homework.
WEAK BUY
Drilling high impact wells in Argentina. Stock is fairly valued on what they have, but they have great prospects. If you like this kind of risk, go for it.
PAST TOP PICK
(A Top Pick June 6/06. Up 77%.) There are well results coming this week. Think they have solved a geological problem. Still a buy.