Fagan says gas play could help stock
CVL Resources Ltd
CVL
Shares issued 36,700,000
1998-08-10 close $0.25
Monday Aug 10 1998
Brian Fagan, writing in the August edition of the Fagan Report, comments that CVL Resources, the former Consolidated Valley Ventures, is an oil and gas exploration company with a focus on Australia and New Zealand. The company, 34 cents on July 31, is trading near its 52-week low of 30 cents; its year high is $1.50. Mr Fagan explains that he has been a strong buyer of the stock recently, but now he is cautious. On July 14, CVL announced the acquisition of a gas prospect for a three-well test. Gas is considered a better play than oil these days, Mr. Fagan says, adding the company must announce a spudding date or the stock could trade below 30 cents. Further, he says, without some drilling success, "I don't want to own this stock on November 5, 1998, when 12 million restricted shares become free trading." Mr. Fagan notes with some scepticism management's assertion that having 12 million shares enter the picture should not be a problem for current shareholders.
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Guess we'll find out on Thursday whether Fagan's concerns are valid or not. Anyone want to make a call on this one?
Anyone have a clue as to when this puppy may drill another hole anywhere? |
