₪ David Pescod's Late Edition March 11, 2008
CGX ENERGY (V-OYL) $3.08 -0.06
PAN ORIENT ENERGY (V-POE) $11.36 -0.09
Of the oil stories that we have followed over 2007, CGX
Energy was undoubtedly the best performing being almost
a ten-bagger. We suspect in the year 2009, when it
starts drilling offshore Guyana once again, it will be one
of the stories of the day.
For 2007, one of the other best performing stories was
Pan Orient and one of the few analysts that followed it was
Warren Verbonac and we have to thank him for that because
we would have never written it up if it wasn’t for
his work. It also was a good performer, but it too, has
had quite a correction in the current market.
So what is Verbonac writing now? From his latest
comment (if you would like a copy of Warren’s latest
t h o u g h t s , e - m a i l D e b b i e a t d e b -
bie_lewis@canaccord.com) regarding Pan Orient, he
writes, “Among our coverage of international juniors, the
best performing stock has been Pan Orient (POE:TSX),
which moved from $3.25 at the end of 2006 to $15.16 by
the end of 2007, an increase of 4.7 times. We have been
covering the stock since late 2005, when the stock was
trading at $1.95, and the extremely strong price performance
is essentially due to one concession, Block L44/43
in Thailand. Blocks L33/43 and L53/48 have yet to be
drilled, and since L33/43 is adjacent to L44/43 with the
same geological trend, there is still extensive growth potential
– with at least 30 more volcanic structures yet to
be drilled. The extensive fracturing system in these volcanic
structures has led to some prolific wells, the best
of which is flowing almost 4,000 bd – a record for onshore
Thailand. Only the best-looking zone in each well
has been tested or produced, up to four zones are being
encountered in these wells. In the three years since Pan
Orient took over these properties, the early drilling success
has led the Company to be the largest onshore
driller and producer in the country.
The Company is pursuing other opportunities in Asia,
news of which may be announced this year, and a divestiture
of heavy oil assets in Alberta could provide funds
to accelerate exploration and production activities in
Asia.”
OILEXCO INC. (T-OIL) $14.85 +0.55
Last Friday was an interesting day as Josef Schachter
of Schachter Asset Management and Maison Placements,
as well as Glenn MacNeill, Vice President of Investments
with Sentry Select Capital are both on BNN as two of the
featured stock pickers and both of them pick Oilexco as
one of their top three picks. Obviously, this stock has a
following, but as Schachter mentioned the other day,
some of the feedback that he gets from institutions (while
many follow Oilexco and all have hopes for it) there is the
suggestion the stock may not make its next bounce until it
gets higher production numbers or closer to higher
“expected” production numbers.
When we check with Rob Elgie, who is the purveyor of
news and information for Oilexco as to when exactly those
higher production numbers will occur, he tells us, “we will
be tweaking with some of the current production and hope
to raise it a bit over the coming months.” But he suggests
Oilexco’s big bump in production comes near year-end
when they expect production from Shelley and five wells
from Balmoral to come on stream and at that time, he suggests
“production should hit 45,000 barrels a day.” |
