From another SI oil board: ( Message 18409636 )
To:jmhollen who wrote (8)
From: Ed Ajootian Monday, Jan 6, 2003 9:05 PM
Respond to of 13
Re: WTO -- A copy of my post on the BBR: Western Oil Sands (WTO.TO) -- Is anybody buying or following this one? They own a 20% interest in the Athabasca Oil Sands Project, which is being operated by Shell Canada, and just started bitumen production up in the tar sands in Alberta.
WTO is very highly leveraged, which provides a good vehicle for appreciation if you believe, as I do, that oil prices are gonna gradually (if not quickly) increase as demand starts to overcome supply, and especially considering the multiple geopolitical wildcards we have going at this point.
This company is sitting on 1.8 billion bbls. of oil that it can "make" from the bitumen in the tar sands, yet its market cap is only C$1.2 Billion and it has about C$0.8 Billion in debt.
What especially intrigues me about this company is how its big brothers have done that have been in similar projects previously, Suncor Energy (SU) and Imperial Oil Ltd. (IMO). Take a look at their comparative 5 year charts: finance.yahoo.com.
Not an investment that's gonna make you rich overnight but I haven't found too many other O&G companies being able to generate 6-year stock price CAGR's of 32%, which is what SU has done from '95 to '01 (per a Herold Report).
Today there was an explosion at the new mine: biz.yahoo.com Is this something I should be concerned about? The stock dipped a bit but I actually bought a little more at C$25. Interested in any thoughts. I know its a hassle (for U.S. folks) having to buy a TSE stock, but my thought is they will probably list on the NYSE as soon as they start actually producing oil (which, at least before this explosion, was just a month or two away).
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