₪ David Pescod's Late Edition May 3, 2006
DIGITAL ECOSYSTEMS (OTC:BB:DGEO) $4.16 -0.01
There are only so many people that you can consider experts, or at least knowledgeable in unconventional gas or coal bed methane, but we have to consider Jim Letourneau who is a consultant in the business and also editor of the “Big Picture Speculator” as one of them. Today he suggests if you are looking for another one of those stories such as Falcon Oil & Gas (FO), he suggests you better take a look at Digital Ecosystems. “They have a huge holding of almost 7 million acres in Australia” Letourneau tells us, as well as 17,000 acres in the Piceance Basin of Colorado (which he says gives a lot of locations based on 10 acre spacing). “In Australia, GSL has awarded a successful bid to Terrex Seismic Company, for 3D seismic program which will start in July that covers 698.5 square km on its 7,000,000 acre license. Gustavson Associates suggests it has the potential on their acreage to hold 300 million barrels of recoverable oil and the potential for 200 TCF of gas with a 10% recovery factor”. Or so they say. Now are you ready for the shocker folks? Take a look at their website at www.mabcompanies.com/bios.htm and see who the people
are behind this company...yes, you know them very well!
STERLING RESOURCES (V-SLG) $2.35 -0.03
You can almost expect a 40-page research about a company like Royal Bank or for that matter, Bell Canada, but 40 pages written on a single junior oil and gas story? Obviously, someone put a massive effort into it and for anyone who wants to know anything about Sterling Resources, Canaccord analyst Richard Wyman has come up with the answer. There is a very experienced management team behind Sterling that has put together some very interesting plays in the North Sea as well as some interesting spec possibilities in Romania, but it’s the look at how business works in the North Sea, the history of the North Sea and general background for the area that’s so important in this report that we figure it is must-reading. Also, considering shortly Oilexco (OIL) and Sterling on their joint venture should have results on Sterling’s first foray in the area, means that this report is about as timely as it can get.
(Sterling like others in the North Sea have faced delays due to the shortages of drilling platforms). If you would like copies, contact Sandra at sandra_wicks@canaccord.com as this is just excellent, overall background reading for those who developments in the North Sea.
APEX SILVER (AMEX:SIL) $16.89 -0.81
ENDEAVOUR SILVER (T-EDR) $ 4.95 -0.28
Once again, the problem of country risk raises its ugly head and it ain’t pretty folks! Bolivia announces that it is nationalizing much of the oil and gas interests in the country spelling big problems for the oil companies that are spending big bucks there. The concern is that just maybe, the government might look at mining assets the same way.
Apex Silver, one of the big silver producers in the area takes it on the chin in a huge way over the last few days and Orvana Minerals (ORV) suffers as well. Coeur d’Alene Mines (CDM) with a new project there, gets hurt as well. It’s ugly. Once again, a person has to ask which countries you want to be investing in and how great is the risk.
Meanwhile, hitting new highs and going the other way in a big way is Endeavour Silver, Brad Cooke’s company with their Guanacevi project in Durango, Mexico. Asking why they did so well, Brad is saying that part of the reason is
probably investors scurrying from some Bolivian assets and some other pricey silver stories into Endeavour and other plays that are somewhat safer in Mexico.
He suggests that “once a silver bug, always a silver bug” but also he has just concluded two investor tours to see their assets in Mexico. With a combination of well heeled investors, brokers and media-types, and obviously somewhat happy with what they saw, as yesterday Endeavour Silver has a great day.
Disclosures: Sterling 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.) Canaccord has recently led financing for Sterling Resources. Canaccord has recently participated in a financing for Endeavour Silver.
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