₪ David Pescod's Late Edition December 31, 2007
CALENDAR OF EVENTS:
CGX ENERGY: January, 2008
Some time in January expect a new report, a resource calculation on CGX Energy and whatever the potential is for offshore Guyana. With some of the huge discoveries being made offshore Brazil and some geological types suggesting that where Africa and South America came together, is where you are finding all these big discoveries lately – offshore Namibia and Brazil, it probably and possibly extends to offshore Guyana. When the report comes out to suggest what kind of a resource might be there for CGX, that’s the last bit of good news until they finally go out with an actual drill and spend a fortune finding out whether it’s there or not. At this point, the easy money will have been made.
INTERNATIONAL FRONTIER RESOURCES:
International Frontier and Gulf Shores Resources spudded their Ridgeway project in the North Sea on December 21st. Expected to take about 28 days to drill, and if there is some good news, testing would take a little longer, so some time around the end of January, expect some news that would have significant affects on these two juniors. You would expect many, many multiples, should the Ridgeway work out, but remember, the odds of success in this area are about one in ten. IFR’s big Dahadinni B-20 well, which Boswell thinks could be one of Canada’s most important wells, is waiting for winter road okay and a second well at Keele River will also be done this winter. Lots going on and all important!
ENERGULF RESOURCES:
February/March spud date and some time in that time frame, expect a spudding with Energulf along with partners on the Kunene #1 well. Expected to start somewhere between January 11 and February 15th to drill a massive 500 million to 1 billion barrel target offshore Namibia. Tiny Energulf doesn’t have a lot of stock out so they have some big leverage to this play, should it be successful. Partners include Sintezneftegaz Namibia, the big Russian firm in a $50 million well.
MARCH RESOURCES: February, 2008
This was supposed to happen back in October, but delays in getting rigs from Canada to Chile is what has caused the delay and now we have rigs being delivered via Houston to take care of that problem. Spudding sometime in late January or February with about 45 days to drill and test, Chile, which needs natural gas desperately, would love to see them be successful. Scott Koyich was one of our top stock pickers last year with his Anglo Minerals being a five-bagger. This is his pick for the speculator for the coming year and as far as targets, he suggests, “this story is either going to be $10.00...or zero.” We suspect $10.00 might be a little aggressive, but it’s an interesting company and take a look at who is on board.
CORRIDOR RESOURCES: End of February
Corridor is a little behind on where they had hoped to be on natural gas production on their McCully play in New Brunswick, which is the bad news. Some time early in the New Year, they will be getting an indication of whether they are able to recover natural gas from their shale play or not. But the huge news, the really, really big news, will be on their deep Dawson Settlement play and the well should be at total depth sometime in February with results probably by the end of February. This is a very, very important well and if the deep stuff is there, the seismic shows an absolutely immense target. Our nominee for one of the “Plays of the Year”.
ARISE TECHNOLOGIES: July 1st.
Some time around now, Arise Technologies should have their plant in Germany built and operating and they will become a player in one of the hot topics of the day ... Solar Power. A lot of the due diligence has already been done of this story, because the Germans are looking to encourage modern high tech firms and have paid between $50 and $60 million towards the plants building. You don’t hand the firm that much money, particularly a junior story that without having made sure their technology would be some of the best in the world. Once production starts, we’ll know how big the market is and then of course we see if Arise’s other areas of endeavor also work out. As Sara Elford of Canaccord has written, “there are always problems with implementation, when you hope to see a firm go from zero revenue to a billion.” Things can go wrong and right. For a copy of Sara’s report, just e-mail Deb at Debbie_lewis@canaccord.com.
PETROLIFERA PETROLEUM: Third Quarter, 2008.
Warren Verbonac has had one of the top picks of the past year as his Pan Orient has almost quadrupled. Who would have thought offshore Thailand would be one of the hot sectors of the world? But when looking at big plays with potential big impact, Verbonac says simply, “you have to find the companies with the big targets” and he can’t find a bigger target anywhere in the world than Petrolifera’s play in Peru. Petrolifera has two enormous concessions in Peru that covers five million acres in the Maranon and Ucayali basins. Of interest, Gary Wine, the President of Petrolifera spent many years working for the Peruvian government, so obviously when they opened up some of their country to exploration, Wine had first tabs at some of the best plays. Some time in the second half of the year they should be drilling to find out if the prize is there.
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