RE: I smell hostile takeover!perfect example was Daylight energy. For no reason at all, Daylight wastaken down to the $4.50s rage and stayed there until the take out came fromSinopec.
By the time, keep an eye on the recent big oil discovery in Argentina (almost1 billion barrel of shale oil found in Argentina). It is the next emergingshale oil play in the world and could be bigger than North American Shale oil.It will transform Argentina into an oil exporter and the government will haveto reverse their recent repatriation law:
YPF oilcompany made a billion barrel oil shale discovery in Argentina a week ago thatthey say is transformational for Argentina. There are a couple of Canadiancompanies that will benefit from the discovery and will make some big gains inthe coming months. BOE, CWV and MVN are all exploring for oil in the same basinthat YPF made their discovery. All 3 have significant land holdings in thebasin. Base on past knowledge I have of CWV, I can tell you that in spite ofArgentina's restriction on price for selling the oil domestically, the netbackis still better than what you get from oil companies with operations in Albertadue to lower Royalties in Argentina. Also, when Argentina becomes a netexporter of oil (which they will given the big discovery), the companies willgo back to selling at world price so that the government can get more taxrevenues (they will no longer restrick them to sell domestically at lowerprice).
For thosewho haven’t heard about the big discovery announced Nov 7th, you aremissing a big investment opportunity:
https://www.marketwatch.com/story/ypf-finds-927-mln-barrels-of-argentina-shale-oil-2011-11-07
All 3looks like steal right now, especially CWV that announced drilling ramp up onsame day the YPF discovery was announced. CWV also has the least amount ofshares (only 54.7 million outstanding) and was recently beaten down due to taxloss selling from a Morgan Stanley seller who started selling after Argentinamade the repatriation announcement (it’s a complete over reaction). Seethis link for some description:
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=30374777&l=0&r=0&s=CWV&t=LIST
You willbe thankful later when you see this basin starting to get real attention. Manymajors are in the basin such as Exxon, BP, etc but only a few juniors to getthe big pop. It only costs CWV $1.5 million to drill a well, they are 12 for 12in drilling so far (100% success), they have no debt, they announced ramp upfor drilling program the same day YPF announced their discovery and they have$19 million in cash to complete their 2012 drilling program. Their netback isbetter than the average Alberta oil company given the lower royalty rates andlower OPEX.