Kerm / Centurion (T.CUX -- $0.77)
I know this company has come up from time to time in the past, but I can't recall if you ever looked at it. A friend asked me to take a look because he's been holding the shares forever and has only had the pleasure of seeing them drop.
Couldn't find Q4 results on the web, so I called the CFO. Details remain sketchy until they release the YE figs, but scratching the surface, the story looks interesting:
- Production, with the tie-in of the field announced April 6, was 4,100 b/d;
- Company's CF est. for 1998 using $16 WTI is 23 cents; for 1999 is 44 cents, fully diluted
- The only debt is the recently-completed convertible debenture, for U.S.$6.5 million
- Acreage is 1.2 million net acres in Tunisia and Egypt;
- NAV on a P4 basis is $2.00.
The only negative that immediately jumps out at me is the share float -- 44.2 million basic, 64.9 million fd. They have ruled out a consolidation for the time being, as they just had one when Eagle and Leader merged. Well, two, I guess, if you consider being in North Africa a negative -- certainly harder to get good info. from there.
If you have any thoughts, I'd certainly be interested. |
