RE: Oilexco (OIL)It's just the same sort of North Sea deal Oilexco was in the beginning and that was quite the high-profile story. Everybody who watches BNN regularly knew about it as a penny stock with great potential because the experts came on TV and touted it. Oilexco had success with the drill bit on I gather what were to begin with fairly low risk prospects (just like BUK with Durango) and then they got lucky. From the lows in those days to the recent highs it went from 80 cents when I first heard about it to over $17; it's traded off now because this year's capex of $700 million scared off some investors what with the credit crunch and so on. Others simply can't believe the price it's trading for now because it represents a cash flow multiple of less than two if all goes according to plan with the capex; and furthermore, what about spec on a takeover? At these prices there isn't any. The larger oils, which OIL has become with a sort-of-next-year-potential 100,000 boed, just haven't done that well in the market since 2005.
I don't own any OIL. I like the junior drillers, and smaller cap companies generally.