Stockchase Opinions

Eric Nuttall Second Wave Petroleum SCS-T BUY Jun 08, 2011

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.
$2.550

Stock price when the opinion was issued

oil gas
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COMMENT
Very interesting potential. If this first horizontal well works, this stock is going to go up. Very risky.
BUY
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.
HOLD
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%.
DON'T BUY
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.
DON'T BUY
(Market Call Minute.) Debt is too high. Too risky.
COMMENT

Debt levels are very high and they were relying on Brookfield, which owns about 40% of the company. He thinks they need $95 oil to grow production. Very highly leveraged.