austrieconomist,
Shulich is the Chairperson of Newmont Mining, which also owns 7680 acres of oil sands properties, but I sense his personal interest of late is BVI.TO, heavy oil and oil sands.
It is pretty good value. Current production aside, I look for what you're getting in assets in the ground. Conservative est recoverable 491m bbl, C$791m mkt cap, two other properties in current production: Hilda Lake (10,500 2004 exit, 14,500 2005 exit prodn) and Lloydminster (10,000 2004 exit, 14,000 2005 target) in production, 58,000bpd pipeline built for oil sands production. Seal is the big oil sands property. It looks like they will fund a large part of 05 Seal CAPEX (C$45m) from CF from Hilda/Lloyminster. With finding costs of less than half industy avg and one of the lowest operating costs of the CDN jnrs, this play has L-T value.
I like their conviction. First, they built a pipeline to process output from Seal, their core oil sands property, which has 2004 exit prodn of 7500bpd, 2005 exit target is 11,500 bpd. Seal has an estimated 800m bbl of what they call 'mobile oil', plus another 191m from Hilda Lake. (I used 300+191 above for a conservative number) Hilda Lake and Seal are the two oil sands properties, Lloydminster is heavy oil.
All data oil two sands projects only
(I used 300m+191m est recoverable off their docs in creating metrics)
bbl/shr Shr Price (FD) per bbl (oil sands only) Mkt Cap/bbl
5.46 0.25 1.61
There was a rumor on ROBTV this week that a possible takeover of BVI was thwarted by management (hence the accumulation by Schulich), as they see too much upside. Among the junior oil sands plays, this one is the most practical in nature, IMVHO, because they can fund from CAPEX. One of my personal top oil sands picks. OST.UN as a core holding, BVI.TO for a practical oil sands junior and UTS as a spec junior.
David
BlackRock Ventures Inc. Quick Quote:
BVI 8.80 (Even)
Seymour Schulich Increases Ownership in BlackRock
1/12/05
CALGARY, Jan 12, 2005 (Canada NewsWire via COMTEX) --
BlackRock Ventures Inc. (TSX:BVI) announced today that Mr. Seymour Schulich, one of its directors, has advised the Company that he has recently purchased 2,000,000 common shares of the Company through the facilities of the Toronto Stock Exchange. As a result of t
he recent purchases, Mr. Schulich currently owns or exercises control and direction over 12,000,000 common shares of the Company representing approximately 14.3% of the issued and outstanding common shares of the Company. Mr. Schulich has further advised the Company that he has acquired the additional 2,000,000 common shares for investment purposes. He has indicated that he may, subject to market conditions, acquire additional common shares of the Company in the future. Mr. Schulich also currently holds stock options exercisable for 150,000 common shares of the Company.
BlackRock Ventures Inc. is a Calgary based oil company active in the exploration, development and production of heavy oil in western Canada.
To find out more about BlackRock Ventures Inc. (TSX:BVI), visit our website, www.blackrock-ven.com
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VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: newswire.ca
For further information: please contact: John Festival, President, or Don Cook, Chief Financial Officer, BlackRock Ventures Inc., (403) 233-2253; To request a free copy of this organization's annual report, please go to newswire.ca and click on reports(at)cnw. News release via Canada NewsWire, Calgary 403-269-7605
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