₪ David Pescod's Late Edition March 28, 2008
PACIFIC ENERGY RES. (T-PFE) $1.50 +0.15
CORRIDOR RESOURCES (T-CDH) $6.76 +0.22
It only figures that when you need a guy, he’s on the
road...someplace far, far away in exotic locales. Somewhere out
there Andy Gustajtis, the oil and gas analyst with Dominick and
Dominick can’t be reached, but two of the stories he’s been following
and had been a big fan of, both have news today.
First of all the charts on both Pacific Energy and Corridor Resources
which had been two of his favorite stories a while ago,
shows how well they had done up until the last six or 12 months.
Doubles and triples. Meanwhile, in this ugly market, they’ve
been suffering just like everyone else.
Today there is news on both of them. Pacific Energy has definitely
had a decent day and even on a rotten day on the market
like this, there is some appreciation. They announce “The Minerals
Management Service (MMS), United States Department of
Interior, has approved the Company’s request for the “Pipeline
Change of Service and Corrosion Protection and Monitoring
Plans for the 6-inch and 10-inch Platform Eureka to Elly pipelines.”
That’s a lot of talk for the fact that their offshore platform in
California looks like it is going to be back in production after a
long time of preliminary work.
According to a report by Warren Verbonac of Octagon, “The
Company has been working on mechanical repairs and inspections
of facilities and pipelines to satisfy safety and regulatory
requirements.” The important part is that production is scheduled
to begin next month on the Eureka platform with initial volumes
of 1000 to 2000 bd, but that’s expected to rise to 5000 bd
by the third quarter of this year.
For tiny Pacific Energy, that’s a huge move. For followers of
the story, remember it’s highly leveraged with lots of debt.
The other tidbit today was on Corridor Resources, which is a
natural gas story in New Brunswick of all places. The thing
about high risk/high reward plays is that they don’t usually work
out and once again, we saw that happen as their much hoped for
Dawson Settlement, the deep play in the McCully field, simply
didn’t have any of the gas one was hoping for and it was a huge
structure. That’s the bad news.
The good news is that more of their workmanlike projects on
the McCully play look like they are paying off rather well. On the
drilling to the deep target they encountered 18 metres of gas pay
in the “B” sand of the Hiram Brook formation and an amazing
1160 metres of Frederick Brook shale. So that’s the good news.
The high profile/high risk isn’t there, but the workmanlike stuff,
looks like it continues to add up.
BIRCHCLIFF ENERGY (T-BIR) $9.71 +0.06
Birchcliff Energy just announced that their loss for 2007
rose to $14.2 million for the year and their stock has had a
hit like many others because of this asset backed mess
courtesy of Wall Street.
However for Birchcliff Energy it’s been less painful than
for most. Maybe that’s because there is a well-known Canadian
billionaire that just keeps buying and buying the
stock. Seymour Schulich who took some time off recently
to write a great book called, “Get Smarter” announces that
he has bought another 1.2 million shares to own 20 million
in total or 18% of the company. You get the impression
that he might like the story and it is a natural gas story.
Do you think his faith has affected the analysts? We
note Canaccord Capital has just upped their target from
$9.75 to $12.50, T. Weisel has upped their to $12.00 from
$10.75, while Paradigm has raised it to a buy from a hold.
Obviously not so sure is Genuity Capital, that raises their
target, but only to $7.95 from $6.45. Obviously, not a believer.
For a copy of the Canaccord report, just e-mail Debbie
at debbie_lewis@canaccord.com.
BEAR STEARNS (US:BSC) $10.67 -0.56
There are some ugly charts out there as everything from
bank stocks to gold stocks have been hammered in the last
while and you can almost taste the fear that’s been in the
markets for the last few weeks and months.
Few stocks have been as badly beaten up as that of Bear
Stearns and it is estimated that as much as 30% of that stock
is owned by its employees. They can’t be that happy!
And speaking about big money, one of Britain's billionaires
picked up roughly 10% of the stock at an average cost
of $105.00. He’s no longer a billionaire and I suspect he’s
not a happy camper as a Bear Stearns shareholder.
Meanwhile, trying to figure out these stocks and which
ones to buy and hold, has proved embarrassing to some
high profile people, nonetheless than Jim Cramer who on
his weekly show, made some statements about Bear
Stearns that were obviously aggressive. It’s worth your
while to tune this in to find out just how wrong certain people
have been over the last while.
Go to: liveleak.com |
