News Commentary
The Resource Stock Watch
A visit to the headquarters of Osprey Energy confirms that
we have a rather unique junior resources company of great
potential before us. (CDNX-OEL)
I recently completed a long anticipated trip to the headquarters of Osprey Energy in Bridgewater,
Nova Scotia. Two decades in this profession have exposed this writer to many different types of
management, good and bad. I’ve seen companies which were low on production and hobbled by
an oversized staff. Likewise, I’ve encountered more than a few which were understaffed. What we
have with Osprey is, I am pleased to report, a lean and rather dedicated staff of professionals, all
led by President, Gary Malone and a Board of Directors that serves as a highly effective talent
bench of knowledge and guidance.
Osprey’s headquarters is unassuming and understated, more like a home than the nerve center of
one of Canada’s most aggressive and progressive oil and gas development and exploration compa-nies.
Mr. Malone has maintained a lean staff and overhead by engaging skilled consultants and con-tractors
to address key areas of need. For example, needs in Alberta are addressed by those skilled
in that region. Likewise, the potential of Louisiana is coming into focus with the aid of key profes-sionals
who know that region as well as Mr. Malone knows his hometown of Bridgewater.
Perhaps most pleasing to me was the clear message that all staff members, all three of them, main-tain
a clear vision of the future, with everyone on the same page and all resolved to attain the ob-jectives
before them. Osprey Energy moves quickly without the crippling effect of internal politics.
This is vital to the future of any junior resource firm and, sadly, it’s a state of existence that too few
attain.
If you’ve been following our reports over the past several months, you are aware that Osprey has
key interests in Louisiana, Nova Scotia, Prince Edward Island and Alberta. As Mr. Malone stated
during my visit, “Alberta pays the bills, Louisiana fuels growth and the Maritime Basin is the future
with tremendous blue sky potential.” Mr. Malone’s statement is confirmation of the risk weighting
policies that we’ve highlighted in past issues. There is a clear focus to maintain and build an ever
stronger foundation for growth. Gary and his staff know well that going deep in certain regions
means risk and great challenges. Simply put, common sense dictates that savvy juniors increase
cash flow depth and depth of profit before going deep in the Earth. All of the current projections,
in our opinion, will be realized and likely surpassed on the basis of remedial work now in progress
in Louisiana. As we’ve stated prior, Osprey has a production goal of 2,000 Boepd by year-end.
As we take calls from shareholders and perspective shareholders seeking information, it becomes
clear that many remain focused upon Alberta as a region of growth and development while many
industry insiders and analysts are looking eastward to the Maritime Basin areas of Nova Scotia and
Prince Edward Island. Indeed, at the recent Nova Scotia Oil & Gas Conference and Trade Show,
Nova Scotia was heralded as “North America’s Next Frontier.” This is a region of tremendous po-tential,
untapped potential at that, to a great extent. Osprey is positioned well within this promising
region. Within the coming two-three weeks we will conduct a sector call on the subject of the Ca-nadian
Maritimes as they will impact the future of exploration and development in North America.
We are working on securing speakers at this time and I will confirm now that Osprey will be pre-sented,
during the conference, by President Gary Malone.
Toronto reception a huge success.
On the evening of Wednesday, October 17th, The Resource Stock Watch hosted a reception for
Osprey Energy at the Sheraton Centre, in Toronto, Ontario. Mr. Gary Malone was invited to pre-sent
the Osprey story to a group of brokers and analysts which were invited to attend by the news-letter.
We were pleased to see a full room and further pleased to see the positive manner in which
Osprey was received. Mr. Malone reviewed growth and positive developments which have oc-curred
since his first presentation to Toronto’s Richmond Club in March of this year. (See Page 2)
News Commentary
October 24, 2001
Special points of interest:
· Funded to attain 2001 production goal of 2,000 boepd by year-end.
· Louisiana forms a strong foundation for production and revenue increases.
· Now involved in exploration plays of immense potential.
· A strong management team poised to continue delivering increased share-holder
value and returns.
Following the presentation, one of the brokers present stated, “When Osprey first presented the projections
sounded too good to be true. Now, several months later, we see that your projections have come to pass.”
Indeed, since we first presented Osprey in February of the current year much has taken place. They have
consistently realized production objectives and they have displayed a certain skill in raising needed capital
without increasing share dilution or debt. Recent transactions involving assets in Louisiana and Alberta have
provided the Company with the capital needed to realize present fiscal year-end (June 30, 2002) production
goals as well as netting three vital salt water recovery wells. In recent weeks we have also seen the release of
an analyst report by the respected firm of Evans and Evans. In that report Osprey receives a positive BUY
rating as well as what we feel are reasonable share target prices for the near and median terms. (The report
may be viewed by visiting Osprey’s web site at: www.ospreyenergy.com.
Between now and the end of 2001, The Resource Stock Watch will present Osprey Energy at major financial
conferences in New Orleans and San Francisco. Additionally, in the weeks to come, Evans and Evans will
issue an amended report on Osprey, perhaps revising targets based upon the positive and significant progress
since their original coverage was released this past summer.
In Closing
After a visit to Nova Scotia, this writer could not be more at ease or more confident regarding the future of
Osprey Energy Ltd. There are many juniors at work in the oil patches of North America today. Few, how-ever,
have the ability to truly attain a future which might well include mid-tier production levels. Osprey, in
this writer’s humble opinion, is such a firm. Their assets are strongly complemented by a can-do attitude and
the willingness to engage the best and brightest talent in the fields. All of these many elements are pulled to-gether
by a strong sense of teamwork and family that’s all too rare in today’s business communities.
If you have yet to review and research the Osprey story, I would urge you strongly to do so now. Our
sources see good things for the energy sectors in the months ahead and the weather gurus are calling for one
of the coldest winters in recent history. That said, I want to stress as I have many times before that Osprey
Energy enjoys profitable production at today’s oil and natural gas prices. Further, all Company projections
are based upon pricing that’s well below current global market levels.
You may obtain all needed research materials from either our offices or the Osprey website. This is one that
you need to review with your broker today.—Until next time, Kelly A. Boatright, The Resource Stock
Watch.
Company Address:
138 High Street
Bridgewater, Nova Scotia B4V 1W1
Website: www.ospreyenergy.com
E-mail:
ir@ospreyenergy.com
Investor Relations Contacts:
Ian McGavney Corporate Investor Relations
John MacDonald Communications-I.R.
Telephone: (902)543-5666 Fax: (902)543-7532
Toll Free: 866-238-1185
The Resource Stock Watch may be contacted at 704-364-9041 or by writing RStockW@aol.com
The content herein should not be viewed as an offer to buy nor an offer to sell the featured security. Any and all investment decisions
should be made only after consulting a registered investment advisor. The author may, at any time, maintain a position in the featured
shares. In addition, The Resource Stock Watch receives a monthly fee to offset the costs associated with research, production and re-porting. |
