w/e junior oilers 11/12 oct03., page-4

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    I got excited when I saw this thread-I thought Jocam was back hard at it again-maybe we have to wait until the oilers do what those 'hot air' nickel stocks are doing at the moment-although it must be difficult doing research on stocks that you're not investing money in-here's my take on those I've had a casual look at(at least)-
    PSA-I have a large holding here and have confidence that this is one of those stocks that can double within twelve months on the successful development of Vermilion,GOM & Beibu,China-I strongly believe both will happen-Vermilion will be producing by July04 and Beibu by the end of 2005.The revenues and profits for PSA will then be huge.Further development drilling on both will happen in Nov/Dec this year and will take the SP up to the next level.Only thing that might hold the stock back until then is disappointing revenues in the Sept quarterly from West Cameron,GOM due to lower volumes & lower seasonal prices received but there's been a good kick-up in the Henry Hub gas price this week as we get closer to winter in the US-this at a time when PSA will have five producing gas wells in the GOM.This stock is very tightly held with the TOP20 holding 70% of the issued shares and there's only 35mil outside those holders.PSA should earn $25mil this year which makes it cheap as the market cap is only $85mil.
    FAR-It seems like we've been waiting months for the result of the Terry Ewing well-it must be Monday that this happens so fingers crossed-they also have 5% in Beibu,China(that will be watered down to 2.4% after CNOOC participation) and really don't see FAR retaining this interest as it'll be difficult to raise the development dollars for a China project-both PSA & ROC would be willing buyers.FAR will hopefully concentrate on the US where it has other projects such as Lake Long.
    HZN-I'm guessing that they'll sell out of Beibu,China to ROC/PSA as raising the development dollars will be impossible for them-they'll then be able to concentrate on their NZ project where they'll find it easier to raise the dollars.
    SUR-I've retained my shares in this one hoping for some action with their Carnarvon Basin interests-best prospect here is Vesta to be drilled this quarter.They also have acreage in the Exmouth basin where BHP/Apache struck oil this week.Also involved with PCL in Malta.They've also got plenty of cash.
    PCL-Disappointed to see them issue 9mil shares at 6c last night but suppose they have to have money in the bank if Kenya doesn't work out-SP has huge leverage if BHP does come up with drilling targets here-proactive management that has proven to be ahead of the rest in getting the Kenya/Malta acreage.A big gamble but could be a huge one.
    The shares I have in oilers are in PSA,FAR,SUR,PCL,ROC.
 
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