COASTAL ENERGY
PACIFIC RUBIALES
Coastal Energy
was an interesting story with a great management team with
assets in Thailand and offshore Thailand. However, two
years ago they didn’t have much other than hope going for-
ward.
Now they are up close to 10,000 barrels a day and they
spudded the Songkhla-B prospect just before Christmas and
there should be results out some time in the next while. The
fact that Coastal is heading up strongly in the last few days
suggests that this well might have come up with something
for it to be making a move like this.
We caught up with Fred Kozak who has been advocating
this story for some time (as has Keith Schaefer of the Oil
and Gas Investments Bulletin) and Fred tells us the signifi-
cance of what is going on. There are two blocks on this tar-
get that they are drilling and the two faults have targets—
one of potentially 30 million barrels, the other of 70 million
barrels. Needless to say, if both of them hit, this story is
going to the moon. If not…well, this folks is what explora-
tion is all about.
Meanwhile, it’s that time of year we ask all our favourite
stock pickers if they could only buy one stock today, what
would it be? Kozak suggests that he is now showing the
strength of his conviction as he ups his target on Pacific
Rubiales to $25.00. While Pacific Rubiales has had an abso-
lutely amazing run (just like Bankers Petroleum, Coastal and
a few others) but a $25.00 target definitely is one of the suc-
cess stories of the day, should it get there.
I guess we owe Freddie a bottle of single-malt scotch
which is what he celebrates with when a story comes in big
and I suspect if Coastal comes up with that kind of news in
the next couple of weeks, there will be a few corks popping
around Houston.
We come up with the second question Freddie...if you are
a retail investor, Pacific Rubiales is now kind of out of your
league. Have you got any juniors? “Yes” he says, just
check out this one story that is a cheapie associated with
Pacific Rubiales.
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East Asia has had a bit of a correction over the last
couple of days and Dave Coffin says it is just a normal
correction in an ongoing good story.
Meanwhile, Nicolas Campbell updates us on Keegan
which is having a great day today and he suggests that a
scoping study should be ready by the end of this month
which is going to give the analysts something to look
forward to. More drilling results should also be out in a
couple of weeks as well. He also wouldn’t be surprised
to see the company acquire additional land in their hold-
ings in Ghana.
Meanwhile Campbell also points out more takeovers
today with Barrick and Goldcorp arguing over New Gold.
But he does suggest that that’s a probable exit strategy
for Keegan down the road…at some point, somebody
bigger buys them out.
We note several analysts suggesting several compa-
nies work in the area of Ghana and Red Back might be an
obvious buyer.
AMAZON MINING
(V-AMZ)
$2.35 +0.24
THALLION PHARM.
(V-TLN)
$0.30 +0.01
As we’ve mentioned, it’s the time of year to ask the
stock pickers and people with significant companies for
their selections for the coming year. John Kaiser has had
winner after winner after winner in the past year—
everything from rare earths to diamonds to you-name-it.
One that we have latched onto and even visited Brazil to
see first-hand is Amazon Mining. The stock hits new highs
today and Jed Richardson, the geologist/VP with the com-
pany tells us to expect additional drilling results early next
week.
We asked him for a stock pick, particularly since he was
one of those advocating Wavefront last year and he goes
with a weird one. “I’m aware of the plight of pharmaceuti-
cal stocks” he says, but he has big expectations for Thallion
Pharmaceutical, which has just signed a mega-deal with LFB
Biotechnologies of France. Richardson says the company
is trading for less than cash in the till and if their special-
ized drug works for different kinds of e-coli problems, he
can see this story attracting a lot of attention.
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