David Pescod Today
THEY SPUD!!!
INTL. FRONTIER RES. (V-IFR) $1.55 +0.02
OILEXCO INC. (T-OIL) $8.40 +0.22
Well, actually, they spudded on Monday and so far, it
hasn’t exactly taken the market by storm. We are a little
surprised by this as we encounter yet another junior oil
and gas in Alberta that’s getting so excited about a five
or possibly ten million barrel discovery.
The target that Oilexco, International Frontier and a third
junior are drilling in the Laurel Valley play in the North
Sea has a potential target of 600 million barrels.
Some suggest it could be bigger, on the other hand,
some suggest it could be smaller and then of course we
have to remember, this is a high risk/high reward exploration
play.
We believe of course that the leverage is in the two
little guys, that if they do hit, they could see multiples of
current stock prices. On the other hand, Oilexco has
more downside protection. In other words, if they do
miss, Oilexco shouldn’t lose that much. In fact, if you
look at Fred Kozak’s Oilexco’s report and he’s the one
analyst that’s been predicting Oilexco best, when he
works in his $14.00 target for Oilexco, he doesn’t give
any credit at all for success at Laurel Valley. So if they
are successful…
For those who haven’t yet received the Oilexco report
by Kozak and would like a copy, e-mail Sandra at sandra_
wicks@canaccord.com.
The one thing that gives Laurel Valley credit despite
the high risk play, is the huge number of very significant
discoveries made within 40 miles of where Laurel is being
spudded and some of them are just enormous.