Stockchase Opinions

Eric NuttallSecond Wave PetroleumSCS.TOHOLDAug 16, 2011

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%.
$2.70

Stock price when the opinion was issued

oilgas
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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.

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