₪ David Pescod's Late Edition July 10, 2007
CANDAX ENERGY (T-CAX) $0.98 n/c
NIKO RESOURCES (T-NKO) $101.77 +1.67
ITHACA ENERGY (V-IAE) $3.53 -0.09
He used to be this country’s top ranked oil and gas
analyst for two years running and then he took a fateful
step...some say error, and instead of critiquing the oil and
gas business, decided to join it as an executive with Candax
Energy.
The last few days have been interesting for John
Clarke, because one stock his name has been associated
with for years was Niko Resources and Niko in the last few
days has broke the $100.00 mark.
When we caught up with Clarke, he suggests “they just
keep finding oil and gas, it just keeps getting bigger and
bigger” and while he still suggests it’s a take-over target,
it’s going to have to be somebody really big to have a go
at them these days.
As far as Candax Energy where he has learned about
all the things that can go wrong firsthand with oil and gas
exploration, with one problem being very big...finding rigs
that can operate in shallow water. After not days or
weeks of delays, but quarters of delays, they finally have
a rig that should be spudding the El Bibane play by
month-end.
When we ask Clarke to put his analysts cap back on,
he is most obliging and we have to remind people that
some of his recent picks over the last six to twelve
months have done quite well, such as Antrim Energy
(AEN). And he has commented favorably on Oilexco (OIL)
from time to time.
But it looks like he has some changes in mind for his
top picks and again, he still thinks Niko is going to go
higher. One play he suggests people are going to have to
watch is the Canadian Superior Energy (SNG), natural gas
play offshore Trinidad. The target, he says, “is huge.”
As far as specific buy recommendations, he now shifts
attention from Antrim to another player in the North
Sea...Ithaca Energy, a stock we’ve mentioned frequently
here from time to time, hoping to find the next Oilexco.
As far as Ithaca, he says “they have lots of prospects to
be drilling and with a significant event, drilling the Athena
play in August, we have that excitement to look forward
to.
SERENGETI RESOURCES (V-SIR) $2.69 -1.46
GOLDQUEST MINING (V-GQC) $1.15 -0.12
There may thousands of junior exploration companies out
there these days, but it’s funny how the market has been accentuating
just a handful of them with relatively big expectations.
Mind you, one set of drill results, doesn’t make a mine
and it doesn’t take away from the discovery of the mine, but
the concerns are always that it might be the start of a new
trend.
The three that we think the market is focusing on are Goldcrest
Resources, Goldquest Mining (GQC) and Serengeti Resources.
Goldquest, one pick of the Coffin Brothers of Hard Rock Analyst
fame, they suggest that the company has a very intriguing
portfolio of properties, but one in particular—the Las Animas
in the Dominican Republic has come up with some intriguing
drilling results. But one big question is the true
width of that hole.
The other one is Goldcrest Resources which is in Burkina
Faso working on a project that had some previous drilling
done by the UN and affiliates years ago, that so far they’ve
been able to duplicate, but only with a few holes. Like all
other juniors these days, they are waiting for lab results.
Today the third of the three reports results and there’s
some significantly less grade than had been hoped for by the
market. Sure they have 312 metres of gold/copper, but the
grades are lower. Example: 0.27% copper and 0.39 g/t gold
versus their discovery hole of 0.69% copper & 0.54 g/t gold.
Canaccord analyst Graeme Currie who follows Serengeti
moves his target from $3.75 to $3.45. If you would like a copy
of Currie’s report, just e-mail Jenn at Jennifer_
lagdamen@canaccord.comm.
WAVEFRONT ENERGY (V-WEE) $1.31 +0.11
Jim Letourneau of the “Big Picture Speculator” has
been following one story for some time. It’s Wavefront Energy
and it involves revolutionary technology in the oil and
gas business.
The oil and gas business is notorious for not catching
on to new technology quickly, at least in some instances.
Horizontal drilling and the like they caught on virtually
overnight, but some of the new technology involved in
enhanced oil recovery, the companies just don't seem to
be latching onto.
For a very intriguing report on this company done by
Jim Letourneau, give Jenn an e-mail at Jennifer_
lagdamen@canaccord.com to receive an example of
Jim’s work. |
