Kerms Korner / Tier III Portfolio Material Changes
TIER III PORTFOLIO ADDITIONS
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Beginning Cash Component of Portfolio = $ 13,183.70
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Rock Creek Resources
RCR.A
1000 Shares @ $3.80
Total Investment $3,800.00
On June 25, 2002 Rock Creek closed a $9.25 million initial public offering as outlined in their prospectus dated June 7, 2002 utilizing a flow-through Class A/B share structure. These funds were in addition to the private placements completed earlier in the year that raised a cumulative $1.06 million.
Here’s the details of the offering dated June 7th.
sedar.com
At this point in time, there are only 8,772,000 total A&B shares issued and outstanding. I like that. There are an additional 877,250 options outstanding. Management owns 37% of the total shares outstanding.
The company has clearly established their operating objectives and they certainly are in the interest of their shareholders.
The company’s news release for their first quarter of activity can be found here.
www2.cdn-news.com
Important information following their interim report included these news releases.
Rock Creek Resources Announces New Pool Discovery
www2.cdn-news.com
Rock Creek Resources Announces Results From Pembina
Discovery
www2.cdn-news.com
Rock Creek Resources Announces Results from Princess
Well
www2.cdn-news.com
Because the company has just implemented their drilling activity, there isn’t any forward type of information related to their 2003 CAPEX program. I’m sure that after recent and planned 1st quarter progress unfolds, the company will be sitting down each month, adjusting to the results.
Key Management
Daryl H. Connolly, Chairman and Chief Executive Officer
Daryl has founded and developed two successful public oil and gas companies. At HCO Energy Ltd. (“HCO”) he was responsible for taking a company incorporated under the Junior Capital Pool program in Alberta to a Toronto Stock Exchange listed intermediate oil and gas company producing in excess of 10,000 BOEPD. This was accomplished in a period of low energy pricing (1987 - 1997) and major gas market contraction. HCO was largely institutionally owned and followed by brokerage houses and investment funds in the USA and Canada. Daryl built a focused gas asset base in Alberta through astute acquisition and drilling programs. HCO was sold in September 1997 to Pinnacle Resources Ltd. for $260 million. Daryl then founded Tikal Resources Ltd. (“Tikal”) in January 1998 with $3.4 million raised privately in Calgary. This company was developed, through acquisitions and a successful gas exploration program in north-eastern British Columbia, into a Toronto Stock Exchange listed junior producing 1200 BOEPD that was sold for $35 million to BelAir Energy Corporation in October 2001. Daryl has over 33 years of experience in the oil and gas industry throughout western Canada, the United States and overseas. During the last 20 years he has developed an extensive background in equity and debt capital markets, including equity financings and public issues of HCO and Tikal totalling over $100 million. Supplemental to this experience he has directed five corporate acquisitions, specifically Osprey Energy Ltd., Quadron Resources Ltd., Chancellor Energy Resources Inc., Brigdon Resources Inc. and Cirque Energy Corp. In addition, Daryl’s engineering background, technical competence and experience provides effective analysis and evaluation of exploration and development drilling programs.
Mickey D. Taylor, President
Mickey brings to the Company 21 years extensive experience in a variety of engineering and business disciplines. Mickey was co-founder of Tikal Resources where he enhanced his previous industry experience and has positioned himself to lead a new public company to success through balanced risk management of capital programs and efficient oil and gas company operations. At Tikal, Mickey was responsible for all production operations and played an integral role in two corporate acquisitions, $15 million in equity financing, generating and executing exploitation strategies, and communications with shareholders and business associates in the banking and securities industries. During Mickey’s 4 year tenure at Tikal, the company’s production grew from zero to 1,200 BOED and the market capitalization grew from zero to more than $30 million when Tikal was sold to BelAir Energy. Previous to this, at Kerr-McGee/Devon Canada, Mickey was responsible for the development and exploitation strategies for a variety of reservoirs located in areas of central and northern Alberta. Mickey was also instrumental in evaluating Canadian corporate acquisition targets for Devon Energy (US). Prior to this, Mickey spent 13 years at Shell Canada in various positions including production operations, reservoir engineering, business development, and exploration evaluations.
John N. Ostrom, Vice President, Exploration
John brings to the Company strong technical skills and extensive industry experience as an exploration geologist. John’s 17 years exploration experience covers prospect generation in a wide variety of geological settings. John has drilled wells in Alberta and British Columbia with oil and gas discoveries in various Cretaceous, Triassic, and Devonian intervals. Most recently, John was Exploration Manager at BXL Energy from 1999 to 2001 where he contributed to the company discovering 23 new pools, resulting in the company’s production growth from 900 to 2,700 BOED and a market capitalization growth from $10 to $80 million when it was sold to Viking Energy Trust. Previous to this, John was a founder of Solstice Petroleum and an exploration geologist at Shell Canada. John’s background mix of technical training in a major company and experience in junior oil and gas companies enhances his ability to function both as a technical prospector and manager who can realize success by effectively balancing risk and reward.
Buying shares at this level (all time high) doesn’t bother me at all, I believe it is a good entry point I intend to add to my position if shares fall to the $3.00 level again. However, I believe there will be further positive announcements and that will bold well for the share price.
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Balance of Portfolio Cash Component $9,383.70
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