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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (40081)	11/16/2010 1:27:36 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78462

Continuing to add to small e&p companies. More MPET and DEJ today. DEJ says proved reserves greater than market cap: dejour.com (And their proved reserves are greater than enterprise value on fully-diluted shares, as I see it.) Increase in production announced in yesterday's DEJ quarterly. (I don't like the expensive debt though.) finance.yahoo.com finance.yahoo.com

To: Paul Senior who wrote (40081)	11/16/2010 4:49:40 PM
From: E_K_S	Read Replies (1) \| Respond to of 78462

RE: Magellan Petroleum Corporation (NasdaqCM: MPET ) Some discussion on Yahoo that a large investor was selling shares. I guess they gave up on the investment especially w/ management's new focus on developing their strategic reserves. Not too sure if I agree with it either and do not know the track record of the development team. I have a small starter position and am not convinced to build it up until I know that resources are going to be deployed in their U.S. properties. The company is a bit cash strapped and will have to explore JV partners and/or raising more money to develop these reserves. I guess this is the nature of these E&P companies. ==================================================================== GMX Resources Inc. (GMXR) off 7% and back down to it's 50-day MA ($4.53/share). It finally sold off on heavy volume (1.5 times daily average) so it may test some of the recent lower lows ($4.30/share level). I will be adding some more shares as I think this one is further along than MPET in building cash flows out of their proven reserves. I can also hedge GMXR by selling covered calls. MPET does not trade options. I plan to also add shares of Williams Companies, Inc. (WMB) and MDU Resources Group, Inc. Commo(NYSE: MDU ) on any further correction. I think WMB is significantly undervalued but it has more exposure to NG than you like. If the dividend yields go above 3% then I will make some buys in size. My Empire District Electric Co. (EDE) which now yields 5.5% down from 7.5% s/b called away from me in December allowing me to book a 25% gain YTD. I plan to deploy these funds into my basket of E&P companies w/ 70% going into MDU & WMB. ==================================================================== There is definitely interest in these domestic shale fields for both Oil & NG. As long as I see big money sniffing around to acquire acreage in both developed & undeveloped well locations, I will continue to commit money to the sector. I expect to see a lot more JV's and project acquisitions from the big integrators. Both MPET and GMXR could be the beneficiaries of these new investments. EKS

To: Paul Senior who wrote (40081)	12/28/2010 2:07:47 PM
From: E_K_S	Read Replies (2) \| Respond to of 78462

Re: Magellan Petroleum Corporation (MPET) Stock up over 50% from when you first mentioned it in your post 11/16/2010. The only substantial news I can find is that a press release dated 12/23/2010 stated that oil was found in some core samples in the Markwells Wood area in the UK. Magellan has interests in 17 exploration and development licenses in the onshore portion of the Weald and Wessex Basins, in southern England in the United Kingdom Weald-Wessex Basins - Weald-Wessex Basins Focus Area Map: magellanpetroleum.com Live Oil in Markwells Wood-1 Core - Interim Statement 12/23/2010 PR Newswire (UK Disclosure): Northern Petroleum announces that live oil has been encountered in the Markwells Wood-1 well in the primary reservoir target. A core was taken and the well drilled to 4584 feet sub-sea level, and various logging tools are being run to aid the assessment of results. There will be no further comment until log evaluation is complete. ====================================================================== A very interesting area northpet.com The Markwells Wood-1 site was assessed with a mean potential of 35.0 million barrels of oil in place, with an upside potential of 61.4 million barrels with a ten percent probability. The Licence Partners in the Markwells Wood well are: Northern Petroleum (GB) Limited 50% Magellan Petroleum (UK) Limited 40% Egdon Resources U.K. Limited 10% Stock traded as high as $3.00/share on more than 4x it's average daily trading volume. Do you have a fair value target for this company? This find adds at most $0.50/share or about $27 million over the life of the production well. EKS