Joanne A. Hruska, CFA
Reliable Energy
REL-X
BUY
Feb 25, 2011
Small cap higher risk story. Had potential to extend their Saskatchewan Bakken play east and had some early success there. Will also be coming out with some more information on the Alberta Bakken play, which is a hot play moving into Montana. Good catalysts.
Bakken is a growing resource and Crescent Point (CPG-T) has been a serial acquirer of juniors in this area and holds a large amount of Reliable shares. Very attractive land packages and will grow production significantly over the next 6-12 months so could be an acquisition target.
Oil exploration/production in south east Saskatchewan. Crescent Point (CPG-T) owns about 20% and is a strategic partner as they pursue the Bakken oil play. Still early days. Still needs to see another year of drilling. 2011 is a critical period for it.