Joseph Schachter update on OilexcoI thought I would quickly transcribe his interview tonight on Stars and Dogs because it was such a great interview for longs. It was a very quick update but nice to hear that he is as excited as ever about Oilexco, if not more so. You might be able to watch it on the BNN website also.
Q: We want to ask you, Oilexco, do you love it or leave it? Back in August '07 it was a star for you.
A: Love it, love it, love it. They just announced another discovery called Moth. The deeper Pentland was very big, 600 feet of pay. They're in the process of now testing the upper fulmar which had 200 feet of pay. This is a play that could have 100 million or more barrels of recoverable reserves which could add $5 - $7 of value to NAV.
We had a $30 target even before the Moth discovery...these guys have 3 rigs working continuously right now. They have a very strong balance sheet. They just got an increase from the Royal Bank of Scotland for the debt lines for bringing on new production.
We think everything is running smoothly and, of course, commodity prices are much higher than our forecast for our models for cash flow and earnings. So this company will do very very well...Brent prices right now hare higher than WTI because of the shortage of light crude in Europe.