₪ David Pescod's Late Edition March 16, 2007
OILEXCO INC. (T-OIL) $7.70 +0.22
CORRIDOR RESOURCES (T-CDH) $8.00 +0.43
From time to time we do take a look at what we think are the biggest and hopefully the most exciting high-risk/high-reward plays we can find anywhere in the world!
Climbing up that list of significant plays has been Corridor Resources over the last while, but as far as the “Exploration Play” for this year we are sticking with the Oilexco/International Frontier (and another company that we can not talk about because they are in restriction) play in the Laurel Valley in the North Sea. Here it is March 16th, when they were suppose to be spudded and still no sign that we’re anywhere close to that big event.
There has been delays, as people have found out the hard way— there is a significant shortage of rigs that can operate in the North Sea and we have also discovered how much weather can in fact postpone drilling as the North Sea is ripped with bad weather and waves that can be four and five stories high.
Anyway when we contact IFR today, they tell us that as soon as the rig is finished on Oilexco’s Kildare project, they expect to spud the Laurel Valley. Despite a weaker market, we still think that this will be an exciting play. The one benefit for tiny player IFR is that, before they had very little to fall back on if this play should not work out, but now they have a handful of other plays in the North Sea.
…...Which gets us to Corridor Resources. Unusual…..in that it is a natural gas stock hitting new highs. There are a lot of questions, but in many ways Corridor’s not master of their own destiny.
Operating in New Brunswick, trying to get equipment from Alberta can be difficult, such as getting 54 trucks worth of equipment for one big rig to New Brunswick can be difficult particularly if you need permitting in the different provinces………
Anyway the questions for Corridor these days are, number one — when will they finally start production to the New England Pipeline and get those juicy New York prices and secondly — what production rate will they actually be able to deliver (we would be surprised if they aren't producing gas in April, but I think that no one knows what the production rate will be at the beginning) and thirdly—just when will they test the newly discovered Fredericks Brook and fourthly when will they again be drilling for the real deep juicy stuff? This is probably one of the more intriguing plays we can find anywhere and a top pick of Andy Gustajtis of Dominick and Dominick. The only thing that we know for sure is that yesterday, other Brokers were looking to buy big blocks of shares but we said “no thanks!” Today the stock is hitting new highs and it is the only one of the natural gas stocks that we can find doing that!
KIRKLAND LAKE GOLD (T-KGI) $9.42 -0.38
Kirkland Lake Gold is an amalgamation of several former gold producers in the Timmins Gold camp that has been resurrected over the years and as the charts shows, it’s done okay! (Interesting that one of the lead investors in this company has been Scottish billionaire Harry Dobson.)
Today, however, they report that the latest quarter has been a bit of a disappointment where they produced only 10,300 ounces of gold versus the expected 15,500. It’s resulted in a management reorganization —I guess billionaires don’t put up with that kind of stuff and it looks like the mine manager is going to have a much more free hand.
Anyway, we notice that since Dobson has done so well in the past folks should be aware that he’s playing a significant role in a new junior explorer just setting up operations in Canada and one that you might want to start watching……. |
