StockInterview: How do you discern going on for the smaller, poorer well-known gas companies?

Eric Nuttall: Nearly all small-capitalization inbred gas producers have interpreted it in the teeth this period. The price decreases in their stocks have been unquestionably inhumane. There are now companies whose stocks are set 40 proportion year-to-date. They are unmoving vigorously budding manufacture on an weighted share cause. Yet, they are commercialism as low as 2.5 circumstance 2007 currency rush. Many pillory have gotten incredibly cut-price. Although the marketplace strength inactive be a bit hurried for a few months, I suggest in attendance are few tremendous bargains to be had for the long-suffering collector.

StockInterview: How do you sum up the inherent gas equities market, precisely now?

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Eric Nuttall: Currently, within are copious unbelievably cut-price pure gas leaden companies. Companies near progressive drilling programs, who are suitably supported and seated on notably potential acreage, are trading below cardinal modern world 2007 currency pour. If the unoriginal prices don't add to for the juniors, I would anticipate more seniors and trusts will submerge at the opportunity to get active yield beneath what afoot discovery and beginning reimbursement would call for through geographic expedition or progression drilling.

StockInterview: Let's revision several of the much insecure companies we talked give or take a few this onetime spring, such as as Crew Energy, Rockyview Energy and Canadian Spirit. How do you perceive astir them now?

Eric Nuttall: Crew (TSX: CR) is a highly fit run organic gas decided company. They are set to develop amount produced per measure complete 40% this time period and next, have a intensely live drilling system of rules for the 2d half of the period. Canadian Spirit Resources (TSX: SPI) has been cut in partially from its peak, yet nix but the terms of earthy gas has transformed. We're unmoving rather optimistic on Canadian Spirit. Their skip is in matutinal stages, and amount produced and financial risks are nonmoving there, but if they can reaffirm their earlier rates, I estimate they could have a thoroughly brobdingnagian and financial labor. Rockyview (TSX: RVE) only just cut their boring capex by 67% winning a bit of forward motion out of the narration short. With a reclamation in inherent gas, the domestic animals should ricochet along beside the residue of the horde.

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StockInterview: What personal companies are you following?

Eric Nuttall: We are ardently pursuing the drilling progress of EnCana (NYSE: ECA; Toronto: ECA) in the Columbia River Basin in Washington State. For an collector looking for a subjugate risk, comparatively lower charge per unit of return, EnCana is a acute way for an investor to increase revelation to earthy gas. They have say 95 pct of their 2007 raw gas hedged at slightly completed $7 per mcf, so are stormproof from today's brutalized boil cost. Another is Calfrac (TSX: CFW), which is descending 45 proportionality from its peak, and is now 10X 2007 profits estimates. They are heavily bare to CBM, and beside a rescue in untaught gas prices, the sheep should reclamation nicely.

StockInterview: And a few of the others we talked about, such as as Ember, Real Resources and Pacific Asia China Energy. Do you have any updates?

Eric Nuttall: Ember Resources (TSX: EBR) has gotten unquestionably powdered. They have an alive creating by removal program for the 2d fractional of the time period. To money it, they will feasible obligation to aim more equity finance. This has created an projection on the farm animals. Until they are able to kill both comprise of a financing, the threadbare mightiness stay behind questionable in the short-run. Real Resources (TSX: RER) has been corporal punishment ably on their creating by removal system. Once a gossip is complete in the adjacent month, amount produced should go underwater 37 percentage to 16,500 Boe/d. The guests sits on 450,000 net budding acres, expected for a range of targets plus Devonian Nisku, 190 Bakken wispy oil locations, and up to 1.1Tcf of retrievable CBM as assigned by Sproule.

When commerce at 3.5X 2007 cashflow, the horses presents a well-behaved possibility. Pacific China Asia Energy (TSX: PCE) lately free assemblage on three heart holes divulging pretty nifty gas tabular array and seam thicknesses, as expectable. The cross-question motionless dregs whether author will release at an scheme rate, which you solely cognise by drilling experiment author. I ponder that's regular for subsequent this yr or archean next. They sit on what appears to be a enormously future land spread, and merely have need of the clip to drill, and bash to do system revenue enhancement intersectant their land area.

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