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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Sweet Ol who wrote (130029)	4/5/2010 4:27:33 AM
From: Bearcatbob	Respond to of 206151

"So, oilie E&P's might be good. What are people's favorites? Why do you like them?" I have loved DNR for a long time. Up until the recent run it has traded around $15. Own the stock and sell the calls - over and over. Bob

To: Sweet Ol who wrote (130029)	4/5/2010 8:33:06 PM
From: Ed Ajootian	3 Recommendations Read Replies (5) \| Respond to of 206151

JRH, oily E&P's -- 1) Resolute Energy (REN) -- although this hit an all-time high close today it still has a lot more room to run IMO. Their current reserves have a PV10 value of about $15/share (basic shares only), at $79 oil prices. They just redid their bank line and currently have a massive undeployed war chest. They recently farmed into what looks to be a great Bakken play operated by GeoResources. There is a ton of warrants at $13 but the company doesn't need any of the money that would come in from warrant exercises, so if & when the time comes, they could negotiate cashless exercises. 2) Denbury Resources (DNR) -- search my recent posts on this for why I like it. I personally would not chase it above $18, I think the pricing is getting a bit rich at this point. 3) ATP Oil & Gas (ATPG) -- many folks don't realize that this company is becoming very oily -- at $90 oil, they will be generating something like 85 -- 90% of their revenue from oil next year. Also, since a lot of the production projected for next year has yet to materialize, most of '11 production is unhedged. 4) US Energy Corp. (USEG) -- this should be renamed Larsen Energy, it is basically owned and run by a family by that name who treat as if its a privately held corp. sometimes. But their current claim to fame is that they farmed into one of Brigham's Bakken plays, and have hit the jackpot. They have drilled 9 gusher wells so far and have another 6 planned for this year, then starting next year, USEG can propose new wells in the JV. USEG recently raised $50 M, partly in anticipation of next year IMO. I believe there is spacing for up to 45 wells on the JV acreage. 5) NiMin Energy (NNN.TO) -- there's a long story about this one, which I plan to tell at some point, but for now I just figured I would add it to the list. They have a great infill drilling play going in a Wyoming heavy oilfield, with much better economics than the Bakken (see slide #15 of their presentation). They are close to running out of cash but with such great economics, together with proven ability of their management team to raise cash, I don't think financing will be a problem. Here's a blast from the past -- most of the management team worked together at Benton Oil (now renamed Harvest Natural Resources). They are having a CC on 4Q results and operations tomorrow, which should be pretty interesting IMO.