MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING THURSDAY, FEBRUARY 12, 1998 (6)
INDEXES
The Toronto Stock Exchange 300 Composite Index gained 0.5% or 35.90 to 6980.68.
In comparison, the Oil & Gas Composite Index fell 0.8% or 48.83 to 6388.11. Among the sub-components, the Integrated Oil's managed to eek out a tiny gain of 0.0% or 1.98 to 9034.76. The Oul & Gas Producers fell 1.0% or 57.27 to 5566.45.The Oil & Gas Service's dropped 1.5% or 42.75 to 2723.53.
INDEX CHARTS
TSE 300.......... canoe.quote.com
O&G Composite. chart.canada-stockwatch.com
Integrated Oil's.... chart.canada-stockwatch.com
O&G Producers.. chart.canada-stockwatch.com
O&G Services..... chart.canada-stockwatch.com
NEW PHLX OIL SERVICE SECTOR
bigcharts.com.
lonestar.texas.net
HOT STOCKS
Pinnacle Resources traded over 1 million shares for the second consecutive day. Shares are well under 52-week high and company is consistently mentioned as a takeover candidate. Shares closed up $0.05 to $13.85.
Niko Resources Ltd (NKO/ASE) closed up $0.25 to $4.75 on heavy volume, the dollar trading amount the 3rd most active on the ASE. The company announced that mobilization and construction of the Land Based Drilling Platform for the Hazira project in India has begun. This will allow drilling on the platform to commence immediately following monsoon, which typically ends in early September. In addition, the Company announced the spudding of on-shore well Hazira 6 to be followed immediately by Hazira 7, Matar 2, and Hazira 8.
MOST ACTIVES
Anderson Exploration, Pinnacle Resources, Petro-Canada, Gulf Canada Resources, Renaissance Energy, Alberta Energy and Ranger Oil were among the top 50 most active traded issues on the TSE.
Top net gainers included Chieftain International, up $1.50 to $32.25 and Morrison Middlefield $0.65 to $9.25.
Percentage gainers included TransGlobe Energy 26.7% to $1.90 and Ram Petroleum 10.7% to $1.55
On the downside, Remington Energy fell $1.10 to $17.00, Talisman Energy $1.05 to $41.20, Denbury Resources $0.90 to $27.75, Canadian Natural Resources $0.50 to $27.90, Pioneer Natural Resources Canada $0.50 to $32.00 and Penn West Petroleum $0.50 to $14.25.
Percentage losers included Southward Energy 18.6% to $1.05, Cavell Energy 13.5% to $1.15, Black Sea Energy 9.7% to $1.40, Magin Energy 8.2% to $1.90, Remington Energy 6.1% to $17.00, Pan East Petroleum 5.8% to $1.62, Windsor Energy 4.8% to $6.00, Post Energy 4.3% to $3.30 and Numac Energy 4.1% to $4.70.
52-Week Highs = Seven Seas Petroleum (U)
52-Week Lows = Crown JouleExploration, Kappa Energy, Numac Energy, Remington Energy and Snow Leopard.
In review of oil & gas service companies, as well as those with close ties to the industry, Ensign Ressource Services and Prudential Steel were among the top 50 most active traded issues on the TSE.
There were no top net gainers.
Percentage gainers included Bromley Marr 18.2% to $1.30, Peak Energy 12.5% to $3.60.
On the downside, Shaw Industries B fell $1.00 to $44.00, Precision Drilling $0.85 to $25.25, Computalog $0.65 to $20.10 and Prudential Steel $0.50 to $14.75.
Percentage losers included Alpine Oil, down 6.4% to $1.17.
52-Week Highs = None
52-Week Lows = None
Over on the Alberta Stock Exchange, Tessex Energy, HEGCO Canada, Raptor Capital, Green River Petroleum, Stampede Oils, Canop Worldwide, Bearcat Explorations, Niko Resources, Red Sea Oil, Cascade Oil & Gas, Dalton Resources and Best Pacific Resources were among the top 30 most active traded issues.
Net gainers included HEGCO Canada $0.25 to $3.00, Niko Resources $0.25 to $4.75, Justinian Resources $0.15 to $0.45, Syner-Seismic Tech $0.15 to $2.00, Granger Energy B $0.14 to $0.65, Doreal Enegy 0.10 to $1.70, AltaQuest Energy $0.08 to $2.23, Energy North $0.08 to $0.54 and Redeco Energy $0.08 to $0.73.
Percentage gainers included Justinian Exploration 50.0% to $0.45, Granger Energy B 27.5% to $0.65, Aspen Energy 25.0% to $0.25, Energy North 17.4% to $0.54 and Pacific Ranger Petroleum 13.2% to $0.60.
On the downside, Capco Resources fell $0.65 to $2.75, Solid Resources $0.45 to $6.55, Underbalanced Drilling $0.25 to $2.25, Corridor Resoures $0.15 to $1.10, Request Seismic $0.15 to $1.10 and Ayrex Ressources $0.14 to $0.35.
Percentage losers included Temba Resources 36.0% to $0.16, Ayrex Resources 28.6% to $0.35, Endeavor Energy 25.8% to $0.23, Capco Resources 19.1% to $2.75, Sawtooth International 15.4% to $0.33, Devlan Exploration 14.3% to $0.60, Raptor 14.3% to $0.60, Corridor Resources 12.0%to $1.10, Request Seismic 12.0% to $1.00, EMR Microwave 11.4% to $0.70 and Brigadier Energy 11.1% to $0.40.
New 52-Week Highs =None
New 52-week Lows = Ayrex Resources, Bolt Energy, NTI Resources and Temba Resources.
An excellent summary of most actives covering all four of the Canadian Stock Exchanges can be found at
quote.yahoo.com
STOCK EXCHANGE NOTES
RESEARCH - ANALYSTS - FUND MGR.'S - BUY/HOLD/SELL - ETC.
Feb 12, 1998 Gordon Capital
Anderson Exploration Ltd. (AXL-T:$16.00) BUY Q1 Results
Reported Q1 CFPS of $0.74 vs. $0.98 for the three months ended December 31, 1997. Production volumes were up 12% year-over-year but this was more than offset by a 24% drop in oil and NGL prices. Operating costs also rose 9% year-over-year. While still in the midst of a busy winter drilling season, management has indicated that after spring break-up it will consider reducing its $505 million capital expenditures budget if oil prices remain weak. In light of current weakness in oil prices we reiterate the following two points: (i) the fundamental outlook for Canadian natural gas prices remains positive and (ii) Anderson is 61% levered to natural gas --the highest among the seniors. We continue to recommend Anderson and we are increasing our 12-month stock price target from $17.00. to $19.00. BUY
Feb. 12, 1998 Goepel Shields
Anderson Exploration (AXL, $16.00) First Quarter Results No Surprise
Anderson reported Q1 results for the period ending Dec.31/97 of $0.74 CFPS (vs. $0.69 in Q4 ending Sept.30/97) which was in line with estimate. The price of Anderson shares has recently appreciated from $13 to $16 and is nearing the analyst's $17.50 target. The analyst is maintaining his Accumulate recommendation for Anderson primarily because it is a senior producer with significant leverage to gas prices. The analyst's fiscal 1998 CFPS estimate for Anderson, based on $1.80/mcf gas, is $2.86 (vs. actual results of $3.14 in F97). Factoring in $2.00/mcf gas in fiscal 1999, his CFPS estimate jumps to $3.60.
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