Wendy / Newport Petroleum
If I were to choose one company to hold shares in, it would be Newport
Petroleum. It's absolutely my favorite company. I've been close to this
company since they went public.
I like the way the company is run. I met CEO in Toronto about 1-1/2
years ago. Major stockholders are in Europe, at least thery were at that
point in time. Early this year, I said Newport would be a $9.00 stock by
year end and I think I'm on target. This excludes any announcements
which would impact the company. And there just might be.
I like their land holdings. They are operating in areas that appeal to me.
What I would like to see though, is a little more in terms of balanced
production. Newport is predominately a natural gas & NG liquids producer.
A nice acquisition of oil assets would be great.
The price they received for natural gas of $1.75 is above average. I
don't know if lack of major pipelines restrains production in their case.
They have a strong balance sheet and have the flexability to buy into
sizable assets. However, they have not given any sign that they would
go this route. Growth, with exception of their beginning, has been solely
on an internal basis. They did obtain a great farm in deal some time ago.
The oncoming 3rd quarter report should be gangbusters. Production
and revenue will reflect the tying in of some of their larger wells. Gas
prices have unbelievably held through the summer and that will impact
the company favorably also. I now focus on actual production numbers
of companies at the time being because revenue and cash flow is being
influenced by good energy prices being received. Solid growth are with
the companies growing in reserves and production----you don't have to
depend on commodity prices.
Wendy, no need to lurk in the background anymore. I might note that
your comments on Prudential Steel were very informative and with insight
that we normally wouldn't have. I might add David Peever offered valuable
information on the company also. And, there are others located here who
are quite knowledgeable about our subject matter. I would be interested
if there are other oil & gas companies you follow.
Yes, I like Newport a lot. Another company I recently noted that would
fly is Stampeder Exploration and price is doing just that on high volume.
Other Quality Junior oil's I currently like are Barrington Petroleum, Jordan
Petroleum (lagging the others), Cimarron Petroleum, Richland Petroleum
and Morrison Petroleums (intermediate size). There are other companies
I favor, but shares may be to expensive at this time.
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