Korner Portfolios / Material Changes
TIER II PORTFOLIO
Added a position in Drillers Technology Corp. (T-DLR), 500 shares at $1.60/share
TIER III PORTFOLIO
(Note: Because of the complete restructuring of this portfolio, I will be publishing the portfolio today as it now stands)
Increased holdings in High Point Energy (HPE), 1,000 shares at $0.51/share.
Sold total holdings of Hyduke Energy (HYD) amounting to 1,900 shares at $0.63/share.
Comments
I wanted to establish an initial position in Drillers Technology and plan to further increase holdings via timely accumulation over the next few months. For now, here is a brief description of the company. I will follow up with further commenting on the investment .
Drillers Technology Corp. (T-DLR)
04/22/02 Close $ 1.60
Drillers Technology, a Calgary based Corporation is engaged in the provision of high quality, dependable, safe and environmentally sound contract drilling services to oil and natural gas producers in Western Canada and the United States. The Corporation owns and operates eight drilling rigs consisting of six telescopic double drilling rigs rated to drill oil and natural gas wells to a maximum of 11,000 feet and two super singles rated to drill to 6,600 feet. Technological innovations, including the use of a hydraulic power system to drive the top drive, drawworks and mud pump, containerized rig buildings, redesigned substructure and computerized rig control systems have provided Drillers Technology with equipment enhancements which are unique in the Canadian drilling industry. All rigs are capable of providing casing drilling, a patented drilling technology developed by Tesco Corporation.
Drillers is dedicated to the strategy of providing superior, cost effective contract drilling services to its customers through the utilization of technologically advanced drilling equipment operated by well-trained field personnel.
The Corporation is currently bidding for international drilling contracts, actively pursuing heli-portable work, and continuing to participate with Tesco Corporation in the introduction of casing drilling. The success of these activities will have a positive impact on the financial and operational performance of Drillers Technology during 2002 and beyond.
Rig 8, the Corporation's newly constructed super single drilling rig, commenced drilling of its first well in early October. Rig 8, capable of drilling oil and natural gas well to depths of 2000 meters, incorporates unique pipe handling equipment and top drive technology, and is hydraulically driven. Rig 8, constructed by Tesco Corporation for a fixed price of $4.7 million was funded from a combination of cashflow and debt. Future rig construction will be dependent upon the successful completion of field testing of Rig 8 and management's assessment of potential drilling demand beyond the first quarter of 2002.
High Point Energy (HPE)
04/22/02 Close $ 0.51
I increased holdings here to give the company a little more weight in this portfolio. The company’s recent acquisition announcement is positive for the company and there is the significant upside potential of Boltan which is not fully reflected in the current share price.
Hyduke Energy (HYD)
04/22/02 Close $ 0.63
Holdings in Hyduke Energy were sold because I don’t see any real upside in the share price at this time. I will revisit/re-evaluate the company at the end of the year. |
