Longview Oil Corp LGVWF

RE:2nd Qtr.

[Nawaralsaadi]

Numbers were decent, cash flow and netbacks looks really good (best cash flow since Q1/2012), but production is on the low side, however considering that no new production was added this quarter and yet production remained pretty much flat with Q1 is not that bad.  The persisting wet conditions will make it hard to predict Q3 production, however those are not major operational issues and they should be able to catch up once the weather permits; so far their capital efficiencies are in line with their budget for 2013. In light of the strength in oil prices (which are even better than Q2) the next couple of quarters should look good assuming they will commence drilling soon.

I believe the stock will trade mildly positive tomorrow; I don’t see brokers turning bullish until the company resumes its drilling program and grows production further. This will either be a November event or early 2014 event. Most importantly the generous dividend remains intact and fully earned; I would consider adding to my position if the stock weakens.

Regards,
Nawar