This team is very good. There is quite a bit of risk if they do not have the success they are talking about. That they are successful, they will have to build facilities, defrac, etc. Be cautious.
Has been languishing. Found a lot of gas, but it was under P3 (Possible). A big potential resource there, but the market wants it taken into the P1 (Proven) and P2 (Probable) areas. Waiting on news of wells they are drilling.
They are waiting for Husky, the operator, to make some announcements. Land issues in the area. Also working on some UK deals to get them farmed out. A fabulous story for business risk oriented accounts. Use a 3/5-year investment time horizon.
(A Top Pick Sept 26/05. No change.) Massive land spread in Egypt. Been spending a lot of time on facilities which are coming on now. The big thing is the exploration in front of them. Have 3 rigs working. Exploration will get oilier.
Gassy weighted. Stock dropped with gas price. Have 2 core assets which are fabulous potentials for a trust. Could go that route when gas prices firm up this summer.
Have assets on shore Romania which is very big upside. Have UK offshore oil. There are 9 plays in the next 12 months. If they have 1 out of 9 success rates it is a $3 stock. Have a 3/5 year time horizon.
Did about 7,300 BOE’s a day in 2004 moving up to 10,394 in ‘05 and expects 14,000. Have to build a pipeline this summer which will increase BOE’s by 4000. Very large land spread.
Just had a D & A (dry and abandoned) announcement on a well and moving the rig to a new area which has high impact potential. Have 2 rigs booked for 3 years which is a big asset. Very cheap.
Likes the story a lot. In the 4th quarter, they are getting 2 deep rigs to chase down the opportunities in the deeper sections of those waters. Buy in the low $50’s.
Just took over Tiverton Petroleums. Has heavy/light oil and natural gas. In partnership on a block of land in Egypt. Likes that portfolio approach. On his radar.
