GREY:BXEFF - Post by User
Post by
sumosalaron Mar 15, 2010 7:45pm
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Post# 16885419
From Canaccord's David Pescod
From Canaccord's David PescodMarch 15, 2010
In the meantime, Shaw is again showing his fearlessness
(or foolishness) by upgrading his target on BellatrixExploration slightly from $5.80 to $6.00.
On Friday he wrote, “BXE reported funds flow from
operations of $36.0mm for 2009 vs. our $34.75mm expected.
Production average 6,572 during Q4/09 vs. our
6,647 boe/d expected. Currently production is ~8,000
boe/d with an 2010 exit guidance of ~10,000 boe/d.
What we like about this name is their strong land
position in the Cardium and Notikewin (200+ Cardium
hztl locations & 50+ Notikewin hztl locations) with a total
of ~475 development locations creating 6 years of
drilling. This position includes a premium Cardium
spread with 81 net sections in a play which has seen 4
recent acquisitions with very attractive take over metrics
(3 PetroBakken and the recent Daylight acquisition
of West). Plans are set for a 31.6 net well program in
2010 (~18 Cardium & ~9.2 Notikewin) with 3 Cardiums
ready to be frac’d and one Notikewin currently drilling.”