Best Penny Stock: Lundin Oil AB (Nasdaq:LOILY)
Michael: The best "new" penny stock in the oil & gas sector right now, IMO, is Lundin Oil AB. At $2 3/32 per share, it's currently trading at 2.75X cash flow and 10.5X earnings. 52-week low: $1 7/8. 52-week high: $4.
Check it out. I think you'll be pleasantly surprised.
FWIW, Tomas and I have both been following this stock for years, but he's a lot more knowledgeable about the company than I am. Proximity rules on foreign issues like these. I just know a good value when I see it. <vbg>
Best regards,
Razor
"2000 First Quarter Report, Lundin Oil Announces Record Cash Flow"
Friday May 26, 10:16 am Eastern Time
Company Press Release
STOCKHOLM, Sweden--(BUSINESS WIRE)--May 26, 2000--Lundin Oil AB (Nasdaq:LOILY - news)
Results converted from Swedish Krona to USD at 8.7150 (average exchange rate over 3 month period).
Lundin Oil AB (the ``Company'') is pleased to announce a net profit of US $4.3 million (US $0.05 per share) for the first quarter period ending March 31, 2000 versus a loss of US $0.24 million for the same period last year.
Operating cash flow was a new quarterly record for the Company and up 125% from the same quarter last year to US $16.2 million (US $0.19 per share).
Average production for the first quarter was 14,539 boepd, a slight increase over the same period last year.
Average price received on crude oil sales during the quarter was US $22.97 per barrel up from US $11.31 received during the first quarter last year.
Operations
Gas Sales Agreement in Malaysia/Vietnam signed in February, 2000. Phase 2 of the project proceeding with forecast net production to Lundin Oil to reach 34,000 boepd.
Libya development approvals received in January, 2000. Project development underway with forecast net production to Lundin Oil to reach 24,000 bopd.
UK North Sea production continued to produce strong cash flows in line with expectations. Average production over the first quarter was 8,704 boepd, down slightly from the same period last year.
Ian H. Lundin, President of Lundin Oil commented, ``The first quarter of 2000 was a historical milestone for the Company having received the approvals required to implement our major development projects in Malaysia/Vietnam and Libya. In the meantime, we have generated healthy profits and cash flow from our production in the U.K. and Malaysia/Vietnam.''
Subsequent to the quarter under review, all requisite shareholder and regulatory approvals were received pursuant to a Plan of Arrangement whereby Lundin Oil will acquire all of the issued and outstanding shares of Red Sea Oil Corporation on the basis of 0.47 shares of Lundin Oil for one Red Sea Oil share. Upon completion of the takeover of Red Sea Oil, Lundin Oil will have a 100% interest in the Libyan project.
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Contact:
Lundin Oil AB
Magnus Nordin, 011/46 8 440 54 50
or
Lundin Oil AB
Sophia Shane, 604/689-7842
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