₪ David Pescod's Late Edition November 9, 2006
CONNACHER OIL & GAS (T-CLL) $4.10 +0.01
It’s been a while since we got an update from a very busy
Dick Gusella on Connacher Oil and Gas, but we finally caught up
with him yesterday
One look at his calendar shows how active this company is
going to be over the next while. Yesterday they released their
third quarter results, but for much of November, their main emphasis
will be on preparing their sites for drilling. He suggests
take a look at Connacher’s website (www.connacheroil.com) to
see how that work is progressing.
For the month of December, they should be starting to drill
their SAGD well pairs and then between January and March,
they start drilling 70 core holes and complete their 3D over the
main lease block. Also then, they will be drilling up to 25 conventional
wells at Marten Creek and other areas of Northern
Alberta, primarily looking for gas.
Also in the first quarter of next year, they will hopefully be
completing their application for Pod 2.
On March 7th, they will be announcing their full year results
for 2006 and the important part of that report should be their
year-end NI 51-101 reserve report.
On May 7th, they announce the first quarter results for 2007
and also have their annual general meeting and update reserve
reports on the oilsands and the core hole program and also see
how their natural gas drilling has fared.
As far as Connacher’s phenomenally successful sidekick
Petrolifera Petroleum, Gusella suggests that over the next 14
months, they hope to drill up to 70 wells in Argentina. Obviously,
that little junior is going to be busy as well.
Meanwhile, for those who like the arch-type, high risk/high
reward play, Petrolifera is expected to drill some potentially
huge impact gas wells in Peru and that’s scheduled for late
2007 or very early 2008.
Connacher Oil & Gas
www.connacheroil.com
AQUILA RESOURCES (V-AQA) $1.47 +0.38
We’ll call them the “Rodney Dangerfield” of the zinc
market. No one seems to care about little Aquila Resources
—no analysts follow it officially and despite zinc
going through the roof and hitting ever new record highs,
up until recently, Aquila has gotten “no respect” at all.
You would think they were operating in a scary place
like Venezuela or the Democratic Republic of the Congo.
Not so. Based in Toronto, working in Michigan, this
looks almost safe.
Now the drilling results are starting to come in big
time as today they announce more results such as 19
meters of 11% zinc. And how about the gold? Six meters
of 32 grams per ton gold plus some silver kickers.
I suspect this isn’t going to be the Rodney Dangerfield
of zinc much longer and I suspect it’s just going to be
just a matter of time before analysts start covering it.
We would like to thank Andrew Kaip and Fiona Childe
for bringing it to our attention, and today Robin Dunbar,
the chief operating officer of the company tells us, that
they still have another 38 to 40 holes being assayed for
release over the coming weeks and he also suggests that
they hope to have new resource/reserve numbers available
by Christmas.
VICEROY EXPLORATION (T-VYE) $13.06 +0.84
It’s a cute little game and it won’t change your lifestyle,
but it’s an interesting one anyway and if you punt it
right, profitable! It’s the takeover game.
The theory goes like this...it’s getting tougher and
tougher to find the big gold projects that could make a
difference to a company, particularly for a big company.
So what do you do to supposedly add shareholder value?
Or make the market care about what you’re up to?
The takeover game is coming to life in a big way and
we’ve seen some major deals, such as Barrick taking
over Placer Dome, Kinross taking over Bema Gold, Barrick
trying to take over Nova Gold, Yamana taking over
Viceroy and Goldcorp taking over Glamis. You get the
drift.
So who’s next? We go to one analyst who won’t let us
use his name, but he comes up with four and two of them
seem to be used by a lot of folks following the gold market
these days.
Aurelian Resources has come up with a huge discovery
in Ecuador and a lot of folks following this suggests
that there is going to be somebody big down the road
who is going to want it. The one thing people are waiting
for though, is metallurgical results.
When you mention the takeover game, Bear Creek
Mining seems to be on most people’s lists and if anything,
a lot of people thought it would have happened by
now. Silver Wheaton already owns 19%.
Two other names that seem to be on a lot of lists are
Miramar and AfriOre.
Viceroy Exploration
www.viceroyexploration.com
If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com
www.aquilaresources.com
Comment out to clients with Aquila Resources. |
