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

To: Paul Senior who wrote (50238)	2/8/2013 12:17:13 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78717

I continue to add to my losing position in Aussie e&p Molopo Energy (MPO.ax/MLOOF). Company holds 26,000 acres in the Wolfcamp shale oil resource play in the Permian Basin, Texas. Company expects to have ended 2012 with a net cash position of A$72M =~US$74. On 246M sh out., that's about $.30/sh, with the stock now at about $.35/sh. In my view the company at least has the financial resources to be able to explore and develop some of its Wolfcamp opportunities. Maybe they can find oil and bring it up profitably, maybe not. I don't know what Molopo's Wolfcamp acreage is worth. It could be worth quite a bit or not. E&P News, 1/30/13 reported "Pioneer Natural Resources Co. has agreed to sell a 40% stake in 207,000 acres in West Texas's Wolfcamp Shale to Chinese conglomerate Sinochem Group in a deal worth $1.7 billion." More specifically, "Sinochem agreed to pay $500 million in cash for roughly 82,800 net acres and will pay the remaining $1.2 billion by carrying a portion of Pioneer's share of future drilling and facilities costs." So maybe, possibly, at best? - who knows? -- Molopo's 26,000 acres are worth more than Molopo's current enterprise value of about $18M. finance.yahoo.com

To: Paul Senior who wrote (50238)	2/13/2013 2:12:29 PM
From: E_K_S	1 Recommendation Read Replies (2) \| Respond to of 78717

Penn West Petroleum Ltd. (NYSE: PWE) - Moved ERF proceeds into low priced shares Enerplus Corporation (NYSE: ERF) - Peeled off high priced shares I like PWE at it's recent lows for their Alberta Canada Oil and NG assets. This is Western Canada which the market has under valued since there is not easy exit for the oil and/or gas until new pipelines are constructed. Therefore, I continue to build my position selling ERF shares. This is a lateral switch except I feel PWE has better prospects looking ahead. FWIW, if/when LNG is exported from Western Canada, PWE will be a huge beneficiary. This is another reason I continue to build my position. EKS