₪ David Pescod's Late Edition April 26, 2006
WOLFDEN RESOURCES (T-WLF) $4.49 +0.19
The phrase goes, “maximization of shareholder value” and its
much over used and more often than not, under-implemented.
But it is a phrase that might well describe what is going on
over the next while in Wolfden Resources. As Eric Coffin of the
Hard Rock Analyst describes it, Wolfden shareholders are
divided into two camps. There are the gold bugs that love the
potential for their Red Lake assets and the base-metal advocates
who have eyes only for their base metals projects in the
Arctic and they are significant. Unfortunately, both camps
have no use for the other assets, so why not split the company
in two, and let the shareholders have the asset part that
they like? Makes sense to us and we figure that the company
divided up could attract a lot higher valuation than it currently
does. We’ve mentioned this a few times in the past and we
are glad to see the stock is responding as we get closer to the
special annual meeting and division of the company. We do
an interview with company President, Ewan Downie and for
anyone who would like to give it a read, just e-mail Sandra at
sandra_wicks@canaccord.com.
FIRST CALGARY PETE. (T-FCP) $11.25 +0.45
As the chart shows you, First Calgary Petroleum has had a
couple of bounces over the years. Their drilling in Libya
has come up with some very successful wells over the last
while, but the story got ahead of itself because of lots of
previous talk about potential take overs. Then the stock
plummeted when no take over appeared. The thing about
Libya is that the country has some of the higher royalty and
tax regimes you will find out there. There are also pipeline
issues. On the other hand, if you are looking to make some
of the biggest discoveries you’ll see in the oil patch, Libya
is a good place to look and today, First Calgary comes up
with some more interesting wells. Their LES-3, a new oil
pool discovery in the TAGI zone tested from multiple zones
at normalized totals of 33.6 mmcf/d of gas, 4,655 barrels per
day of condensate and 8,667 barrels of oil per day. Wow!
MLE-6 tested at normalized totals of 36.6 mmcf/d of gas and
2,396 barrels per day of condensate. LEW-2 is currently
testing with four zones identified. Obviously, the firm
thinks they are onto something significant as three rigs are
currently turning in the area and today the stock attracts big
market interest.
DELPHI ENERGY (T-DEE) $5.45 -0.03
For those who were at Joe Martin’s Cambridge House Resource
Conference this past weekend, you know that we emceed an oil
and gas panel and that analysts Jim Welykochy of Genuity Capital
and Fred Kozak of Haywood, both had very kind things to say
about Delphi Energy. Experienced management that has just
taken some aggressive joint ventures with Encana were part of
the reasons and today news out of Delphi gives both analysts
some pleasant surprises. Can you believe that something is
done sooner than expected? Today, Delphi announced that the
company’s first six wells drilled this past winter at Bigfoot in
northeastern B.C. are now onstream. Delphi has a 50% interest
in these wells which are expected to flow at rates ranging from
one million cubic feet a day to 1.4 mmcf/d in the first three
months and then stabilize at .5 mmcf/d to .75 mmcf/d range.
Good news, particularly considering they so far finished six
wells of a 19 well program and it looks like a great place to be.
Bottom line for Kozak, he gives the company a $7.25 target and
Welykochy gives it a $7.00 target. If you are bullish on gas
prices…..
NANOLOGIX INC. (OTC-NNLX) $0.305 +0.525
We have so many different and interesting sources
on stories from around the world and some of them
work out...and those you hear about a lot more
from down the road and some don’t...and you’ll
never hear from them again. We’ll try this new
source and see if he knows what he is talking
about. With all the emphasis being placed by
President Bush on hydrogen and the potential for
hydrogen power, we bought a few Nanologix and we
will start watching...just in case. It’s either a
“cheapie with a chance” or just another story you
are glad you ignored.
Disclosure: Wolfden Resources: Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear
significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.) First
Calgary Petroleum: Canaccord Capital covers this stock and has a Buy rating on it. (Buy: The stock is expected to generate risk-adjusted returns
of over 10% during the next 12 months.) Canaccord has recently led a financing for First Calgary Petroleum.
If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com |
