Natural gas. Currently we are reaching a peak in terms of pessimism. An opportunity to get invested in high-quality natural gas stocks. Might not be at the bottom but it is certainly coming. Forward future strip has been coming down and you have to go out to about 2015 to find prices above $6. In a seasonal trough where we are maximizing storage.
Oil. Some technicians are calling for oil to weaken to $60 or maybe even $55 this fall. He'll wait to see if this plays out. When he sees oil getting up to $85, he lightens up but when it gets down to high $60's or low $70's, he starts to chip away at names he likes.
Very oil weighted. Resisted the urge to grow by acquisition so tend to be less liquid but have a great asset. A lot of Cardium locations with a significant inventory ahead of them. Finding/development costs are about $7 only.
Junior Colombian oil player. Excellent management. Impressive land spread with exposure to about 5 to 7 billion barrels of heavy oil in place. Also some exciting exploration prospects in Brazil and Guyana.
Looks like they are turning the corner. Had a rough start to 2010 with operational upsets as well as the pain of the merger process with Petrocan. Have a firebag expansion coming on next year so there will be some incremental production growth. There are better places to be.
Shares have been particularly weak over the last couple of months because they did a fairly large debt deal. Company has piled on a massive amount of debt onto their capital structure. Have 35% interest in the Long Lake project, which has struggled.
Prefers Crescent Point Energy (CPG-T), which has better land position, better depth of inventory and better economics. Has some pretty significant drilling catalysts in the Cardium to come this fall, so wouldn't count them out yet.
Forecasting 15,000 barrels per day by the end of 2010. Good management. Exclusive access to largest onshore oilfield in Europe (Albania) and have 3 rigs running and expected to add a 4th in Q1. Once they have proved up, he expects the company to be sold at a big premium.
Inventory of about 150 cold heavy oil production wells. Also an inventory of reactive locations of existing wells. Potential to grow significant production over the next couple of years. Low visibility beyond 2 or 3 years of production.
Looking at this one closely. Was a trust and converted to a non-dividend paying E&P company. Has been in the “show me” penalty box for while. If they can hit exit guidance and demonstrate success in the Wilrich (Alberta) play there’ll be a gradual re-rating.
When converting he expects they will right size distributions to give a combination of growth and income. Looking for 3% growth so the dividend would come down modestly.