₪ David Pescod's Late Edition March 24, 2006 Oops for this one
CANDAX ENERGY (V-CAX) $1.08 +0.07
ANTRIM ENERGY (T-AEN) $1.88 +0.03
There is some news out today for those following the
Candax Energy story and it looks like it is mainly pleasant.
First of all, proved reserves increased significantly, mainly
due to the impending investment program and redevelopment
of the El Bibane field. Also, probable oil reserves
are 29% higher at 3.1 MMbbl and that net present
value discounted at 10% works out to be about $125.2 million,
an increase of almost 130%, which is all nice bookkeeping…..
but what next?
Well John Clarke points out to us that, “their high impact
exploration well, Chaal-1 has set casing at approximately
3,200 metres before drilling ahead to total depth at 4,500
metres.” He reminds us, “this is a 2Tcf potential prospect,
and should be running logs in early April prior to a test program.”
However, and this is where this play gets really interesting
for those poor folks owning warrants on the stock, he
suggests that, “it is unlikely that the tests can be run before
the warrants expire on April 14th, so investors have to back
their owns guesses on whether this is going to be a success
or not!” Once again, the exercise price on those warrants is
$1.20 and if this well hits, you would expect it to be nicely
above that and if it doesn’t…………
John Clarke, was one of Canada’s best oil & gas analysts
before he got into the much more difficult game of actually
trying to run an oil & gas company, and we finally get some
tips out of him…..
He suggests first on Centurion Energy, and that they have
had three HUGE announcements recently regarding their
recent joint venture with Shell, the purchase of partners 25%
interest in existing Nile permits and the acquisition of Merlon
interests adjacent to CUX existing E&P permits. He figures
that this is all positive for Centurion going ahead.
He also suggests that if you are looking for a little company,
that’s swinging the bat and after swinging the bat a
few times and missing, maybe Antrim Energy is due for a hit.
Clarke suggests that you take a look at the company,
particularly a report recently done by Wellington West analyst
Jason Squires on the company and he tells us that if
their play in the North Sea hits this could be a very significant
play! (High-risk players only!)
ENDEAVOUR SILVER (V-EDR) $4.71 +0.12
David Coffin is the thinner of the two Coffin brothers, because
while Eric is usually sitting in a comfy office in Vancouver Dave is
usually off climbing the hills with a pick axe in hand in Mongolia,
Peru or where ever!
We finally pin him down, though, and we ask Dave bluntly, “just
how long can this commodity and resource market go?” Because, it
has already gone as long as the normal 2 to 3 year cycle!” Dave answers
that we are in a bit of a new era and he wouldn’t be surprised
to see at least 3, possibly 5 more years and that they soon hope to
go into some detail on this, in the Hard Rock Analyst.
As far as specific stocks, Dave is the brother who was so keen on
Sherwood Copper and with it’s amazing results yesterday, he suggests
“that work is going as well as could be expected and it could grow to
a much bigger resource.” It’s now approaching his $4.00 target, but
he expects to have to change that target once their study is published.
We ask him about silver though, as it is one commodity in a bullish-
mineral sector that has attracted more than its fair share of attentoin.
He suggests Endeavour Silver and “if silver holds where it is and
exploration continues to grow, it is one silver stock that could double.
“
Other stories to watch he says include Minera Andes, close to production
with lots of exploration potential and Minefinders Inc.
Disclosure: Candax Energy and Minefinders Corp. Canaccord Capital covers these stocks and has a Speculative Buy rating on them. (Speculative buy:
Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material
loss.) Centurion Energy : Canaccord Capital covers this stock and has a Buy rating on it. (Buy: The stock is expected to generate risk-adjusted returns of
over 10% during the next 12 months.)
Canaccord has recently led a financing for Candax Energy & Minera Andes.
DEB’S DITTY:
COWS Is it just me, or does anyone else find it amazing that our government (USA) can track a cow born in Canada almost three years ago, right to the stall where she sleeps in the state of Washington and they tracked her calves to their stalls. But they are unable to locate 11 million illegal aliens wandering around our country ... Maybe we should give them all a cow.
CONSTITUTION They keep talking about drafting a Constitution for Iraq. Why don't we just give them ours? It was written by a lot of really smart guys, it's worked for over 200 years and
we're not using it anymore.
TEN COMMANDMENTS The real reason that we can't have the Ten Commandments in a Courthouse? You cannot post "Thou Shalt Not Steal," "Thou Shalt Not Commit Adultery" and "Thou Shall Not Lie" in a building full of lawyers, judges and politicians!
It creates a hostile work environment!
And Last but not least.....
George Carlin said it best about Martha Stewart ...
Boy, I feel a lot safer now that she's behind bars.
- O.J. Simpson and Kobe Bryant are still walking around;
- Osama Bin Laden too ... but ...
they take the one woman in America willing to cook, clean, and work in the yard, and haul her ass off to jail."
If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com |
