Second Wave Petroleum (SCS.TO)

(Market Call Minute.) Debt is too high. Too risky.

It was expected that a value of $3.50 would be possible on a takeout but that market imploded. Feels the leverage is a little high. Feels there are better names to own.

Judy Creek Beaverhill is one of the hottest oil plays in Canada. Well results have been fantastic. Concerned about debt, which is a little high, which could result in an equity financing. Brookfield owns approximately 46%-48%.

They are one of 3 junior is that area that are going to be gone next year. Lot of catalysts coming. Thinks they will be consolidated.

Has been a bit of a dog but the story has been re-invigorated with a new play in the Beaver Hill Lake, which is an area that has been pretty hot. This is one of 3 small companies in this play. Crescent Point (CPG-T) is rumored to have firmed in on this company, so are funding the first couple of wells on this highly impact play. Should have well results in 2 weeks.

Very interesting potential. If this first horizontal well works, this stock is going to go up. Very risky.