ENTERRA ENERGY
(T-ENT.UN)
$2.94 -0.01
BELLATRIX EXPL.
(T-BXE)
$3.79 -0.05
STERLING RESOURCES
(V-SLG)
$1.94 -0.06
We love asking the question to some of our favourite ana-
lysts, market commentators and the like, “If you could buy
only one stock today, what would it be?”
Well needless to say, commodity prices change on a daily
basis, companies discover new assets (or lose new assets),
countries change the rules and you name it. It’s an ongoing
flux of parameters to decide what your favourite pick might
be.
It gets a little easier though when you ask a person what
your top three might be and one of the hottest stock pickers
in the oil and gas sector over the last while, has been Kevin
Shaw of Wellington West. Shaw has been the one who first
came up with the importance of the Cardium plays in Al-
berta. It seems every time he mentions something, you had
to own...you had to own it.
For those who were brave enough a year ago, and
stepped into the market in the natural resource sector, you
have been amply rewarded...Now though, things are little
closer to whatever normal is. So it’s going to be much
tougher to get some of the returns that those brave folks
achieved a year ago.
It’s over to Kevin Shaw, as we ask him to bring us up-to-
date on what his three favourite picks are:
“In the domestic space ENTERRA Energy (soon to be
rebranded as “Equal Energy” upon conversion to a corpora-
tion) is an extremely cheap emerging midcap (i.e. ~10,000
boepd) with 55% oil + liquids weighting, a new team at the
helm, and 500+ development locations (95% horizontal)
across multiple resource plays….they are currently focusing
on their oil plays.
Near-term catalysts are focused on “Cardium” & early
stage emerging “Circus Viola” oil play. Currently testing 1st
Circus hztl & drilling 2nd hztl. Two Cardium hztls to spud in
late March; 79 hztls on these two oil plays alone.
Hztl tests to kick-off at Dina PPP oil pool. ENT plans to
drill two horizontal wells in light ~26 mmbbl OOIP PPP pool
post 2010 break-up; sets up potential 16+ well develop. @
~70% WI.
Reactivating liquids-rich Hunton resource play a focus in
2010. From a “Bluesky” perspective, ENT could quadruple
booked 2P reserves based on full development of
300+ hztl locations at Hunton; Up to 12-well program ex-
pected to start in Q2/10.”
BELLATRIX and STERLING are also still great buys for
both the short-term & long-term (i.e. great value plays)…but
you guys know the story on these ones already.
CGX ENERGY
TAG OIL
We’ve mentioned over the last couple of days, some of
the high risk/high reward plays that Josef Schachter has
on his radar screen as far as companies that should they
hit on one of the high impact plays, could see their stock
trade dramatically higher...if they do hit.
On our own list of high risk/high reward plays or our
high impact list, there are two that Schachter doesn’t fol-
low.
CGX Energy is one that we’ve been following ever since
a border dispute between Suriname and Guyana exploded.
Those problems have now been resolved and later this
year, little CGX Energy will be drilling the first of many
targets. The suggestion by many is that they have 11 tar-
gets bigger than 100 million barrels with two that could
close in on a billion barrels. Sometime soon, little CGX
has to get a financing done which means they will be up to
200 million shares outstanding, which means sooner or
later, they better hit on one of the big guys.
Our second nominee is Tag Oil, for the simple reason
Clive Stockdale was the guy who came up with Ultra Pe-
troleum, a story which became a 100-bagger. If he thinks
Tag Oil is going to be one of the exploration plays of the
year—so do we! President Kerry Sully is on an IR trip to
Europe that last few days and it looks like it is attracting
investor interest.
PANWESTERN ENERGY
(V-PW)
More and more people are finding a good formula in the
oil and gas patch is to find an experienced oil team and
simply follow it. Sometimes they will go through a couple
of companies in a career, but there’s an awful lot of people
following Abby Badwi as he has put together with Doug
Urch, one heck of a team at Bankers Petroleum.
It’s become a huge success and before that, they had
another success with heavy oil in Egypt. The question is,
is Abby going to retire some day and count his money? Or,
is he going to stay in a business that he’s becoming so
successful at?
The suggestion by some is that sometime in the next
year, Bankers gets sold and Abby’s going somewhere else.
So it was interesting to see the pop in PanWestern Energy in
the last couple of days when it was announced that Abby
had joined their board.
When we finally get a hold of Abby, he e-mails us this
answer as to what his plans are. He simply responds:
“PanWestern is the new vehicle of a proven management
team led by Jim McFarland of Verenex. They will be going
international. Put it on your radar screen.”
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