OILEXCO INC (T-OIL) $7.31 +0.18
ANTRIM ENERGY (T-AEN) $4.64 +0.34
INTL FRONTIER (T-IFR) $1.05 +0.13
GULFSHORES RES. (V-GUL) $0.54 +0.06
There is more news out on the Nicol Field project for
Oilexco today and the stock, one that we have followed for a
long time, hits new records. One of reasons we have been
following this story is for the enthusiastic support given by
Haywood analyst Fred Kozak.
Needless to say, you would want to be up to date on his
latest thoughts and from a research report, he just issued
yesterday, he writes the following: “Oilexco—We have increased
our target price for this Company to $12.00 from $8.00 in part
owing to our increased commodity price outlook for 2007 and in part
owing to the fortunes of the Company. Oilexco is now less than three
months away from production of approximately 25,000+bbl/d of oil
production from the U.K. North Sea. However, with our new oil price
for 2007, we now expect that Oilexco will become taxable in the last
half of the year. We note that the Company has significant exploration
exposure through the end of 2006, as well as exploitation drilling on
the Sheryl (formerly Disraeli) prospect, which is likely for production
before the end of 2007. We also note that the market in Canada is now
paying more attention to the Company, as evidenced by the recent
share price increase.”
Which brings us to Antrim Energy. This is a story that we
have touched on from time to time over the years, as they
manage to come up with, every couple of years, a high risk/
high reward play.
For anyone who has watched Shelton Canada and their
lack of success in the Ukraine, you know that if you have a 1
in 3 chance of hitting something big…...that means the odds
are your going to miss. But, Antrim on their East Causeway
play in the North Sea beat the odds, whether they were 1 in 3
or 1 in 10, and have come up with a significant success.
Antrim’s stock has performed amazingly over the last
while and it shows you why a person should from time to
time look at the high risk/high reward plays. Antrim now has
more than 80 million shares outstanding and they had
vended out some of the project just before the latest success
was announced, so they don’t have the leverage they
might have had, but Santa Clause might yet give them another
reason to be joyful.
Antrim continues to come up with good success on their
natural gas plays in Argentina—yes the same area where Connacher’s
Petrolifera has been having some success in oil!
The problem for Antrim, though, has been that the Argentineans
have (up until recently) been paying just a small fraction
for natural gas compared to what North American’s are used
to.
Now all of a sudden, facing potential shortages for gas, they
are starting to pay the Bolivians many times what they were
paying domestic producers. Could Antrim get some more joy
from there as well?
Which gets us back, in a way, to Oilexco. When we look
across the horizon of high risk/high reward plays, Art Millholland
of Oilexco told us in an interview some time ago, “So if it’s
there, it puts us in the stratosphere!” (See June 26, 2006 Late Edition
issue that featured “A Brief Interview with Arthur Millholland
of Oilexco Inc. ) Those are his words, but now more than
a few people are looking at it!
Now that there are some EnCana (ECA) people who are involved
with the Buzzard play (one of the bigger successes in
the North Sea) and are suggesting that the Laurel Valley just
might be a Buzzard look-a-like and might have a 1/2 billion barrel
target, we can’t think of a play that could be bigger and yes
Oilexco is there!
The other two juniors involved are little Gulf Shores Resources
and International Frontier…….which gets us to International Frontier,
which has had a bump or two over the last while and in fact
over its last few years it has had many bumps!
Drilling on their high profile play up in the Canadian North
might be delayed a year and their stock has been hit “BIG
TIME”! On the other hand, they also have a very significant
interest in the North Sea play with Oilexco of 12% plus and if
this play hits…...tiny IFR will become one of the stories of the
day!
The count down to the Laurel Valley drilling is probably 100
days away or there about, but when they drill it will be one of
the stories of the day!
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