₪ David Pescod's Late Edition March 13, 2006
CONNACHER OIL & GAS (T-CLL) $ 4.88 +0.17
PETROLIFERA PETROLEUM (T-PDP) $10.83 +0.44
OIL INVENTORY IN THE U.S.
It wasn’t too long ago that we were starting to worry about the
amount of natural gas in inventory…..It turned out to be quite a reason
to be worrisome, with a mild winter over virtually all of North
America natural gas prices have halved!
Now we look at the inventory numbers for oil and it’s not anything
more positive. One could make arguments that without the
geopolitical concerns out there today, oil could not be $50.00 but
maybe $40.00 or for that matter less…..but, there are those geopolitical
concerns.
If you want to hear the case for the “Bulls”, it’s probably not argued
by anyone better than by listening to Texas Oilman Henry
Groppe on ROBTV. Just go to www.robtv.com and click on watch
past videos. Click on the Friday tab and scroll down to 12:30 PM ET
Market Call with Jim O’Connell to see the program.
Once again, a very well annunciated case for the “Bulls” on oil
and gas. Better yet, one of our favorites for the “Bulls” in the commodity
sector has been for the last few years, Don Coxe, and for his
latest weekly commentary go to www.stockhouse.ca, “Bullboards”,
the type symbol CLL and find the date of 3/11/2006 and the time of
11:38, which somehow gets us to Connacher Oil & Gas.
We have been long and strong this story since it was $0.60 to
$0.70 way back—If was after the COPIC Conference, when Dick
Gusella first mentioned this new Great Divide project, and Kerry
Sully, the former Ranchmen’s Oil & Gas President, suggested that
we had to be there. He didn’t actually wrestle us to the ground and
say that we had to be there, but the words were that strong.
Over the last while oil & gas analyst Andy Gustajtis, now with
Dominick and Dominick, has been just as strong in supporting this
story. We’ve decided that no matter what happens to oil & gas
prices, we’ll stay in until this project gets going!
So, we catch up to Dick Gusella on a Saturday morning, of all
things. He is known to put in long hours during the week, 7 a.m. to
7 p.m., but there he is doing the same thing on a Saturday……..
As far as updates on Petrolifera, Connacher’s subsidiary, he suggests
that they are currently negotiating on one rig to be signed up
for the next 18 months for steady drilling and another rig for 8
months. Meanwhile a service rig is also being dickered for, but then
they’ve got 24 wells that are planned to be drilled over the next year
and that will keep them busy. Meanwhile, they are also dickering on
using other folks facilities to treat some of their oil production.
For PDP they are also looking at some other possible interests
in Peru, but back to Connacher and the Great Divide project which
is our main interest.
They hope to within the next week to two weeks to finally have
the EUB approval and that is going to be a very important day.
Gusella suggests that they hope to have steam going on the project
within 300 days of that approval being received. That’s a
pretty tight schedule, but they think they can do it—particularly
with the arrival of some significant personnel having being recruited
from the Deer Creek folks.
Meanwhile, they hope to close their Luke Energy takeover next
week, and by the end of the month the purchase of their refinery in
Montana. That’s a lot on their plate.
He does admit that they will have to start looking for personnel
for Luke Energy, as not all the previous management will be staying
around.
As far as drilling on their Great Divide project, all we can get out
of him is that they are “encouraged”, but he does tell us that they
hope to have another application on another POD before regulatory
authorities for an additional POD this summer. That sounds pretty
positive to us.
Meanwhile, with all these hours being put in and all the travel to
South America, he is a pretty tired fella and he tells us that he
hopes to run away to Hawaii for a little golf and relaxation for a
couple of weeks and he does admit to having exercising a couple
of options of Petrolifera, as he to hopes to have a successful retirement……..
some day.
We appreciate his hand-holding, though, as Connacher has
gone through one of the very few drops in the last few weeks giving
the correction in the oil & gas prices we have experienced.
Anyway, thanks for the hand-holding………..
NOVA URANIUM (V-NUC) $3.29 -0.11
They say a picture is sometimes worth a thousand words, so
for those who have wondered why Nova Uranium has had its
much talked about (at least talked about a lot by us) uranium
exploration play on the Mont Laurier property in Quebec delayed,
this might explain why! They’ve been hit with a lot of
snow and the road is, shall we say, if not impassible, close to
it. Equipment has been out recently to try and get rigs and
crew to location, so sometime in the coming week, work on
what we think is a very exciting play, will commence. The
sink hole that you see here is hopefully going to be replaced
by a bit of a corduroy road and in the meantime, we wait for
the announcement of just how soon the rig will be turning.
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