From David Pescod's Late EditionMART RESOURCES (V-MMT)
.54 +0.02
We have certainly gone on a lot of adventures in the junior
oil and gas sector over the last two years as the markets have
recovered a bit. As the charts on Page 2 show, if you’ve stayed
with the blue-chips, you probably haven’t made much money.
Through these adventures with some of our favorite analysts,
we’ve gone to the North Sea (Sterling Resources); to Thailand
and Indonesia (Pan Orient Energy); to Guyana (Sagres Energy
and CGX Energy); New Zealand (TAG Oil); but now, Warren
Verbonac with Union Securities suggests an adventure that
gives a new definition to the word (adventure).
He is suggesting Nigeria! Which made us gag at first because
there is arguably no more corrupt country on the face of the
earth. Everyone in Nigeria seems to have their hand out for
something, particularly government officials, union reps and
you-name-it. It’s also the country famous for the “4-19” scams.
You know, those letters you get anonymously, asking people to
donate money for a particular promotion that comes from Nigeria?
Which of course is the bad news and everyone knows
about it.
Take a peek though at a current article in the Economist
about new governments being led by Good Luck Jonathon (now
isn’t that a name to go with—Good Luck) and his attempts to
turn things around for the economy. Which is intriguing because
Nigeria is still the dominant country in Africa, it’s economy
is growing by 7% a year (or about three times that of the
U.S.) and oil is still the dominant exchange earner for the country.
Mart Resources is the name of Verbonac’s suggestion and
Verbonac’s idea is that there are several junior companies following
up, kind of like the North Sea, where when they big plays
were discovered, the big guys moved on. Mart Resources is
coming up with some very interesting plays in the Umusadege
field in Nigeria and the company is currently netting about 1920
bd. Half-way through drilling a very significant play, the UMU 6,
Mart could see its production climb to 3000 to 4000 barrels a
day and might well be on its way to 7500 barrels a day, according
to Verbonac.
Needless to say, this is moving the potential for cash flow
that he suggests could be 34 cents (and anyone who knows
Verbonac knows how conservative he is. Remember he said to
get into Xcite Energy at
.35, but he was happy with a three to
four bagger? It’s since become an 8-bagger…).
Mart Resources is obviously only for those with a real sense
of adventure. But then, stick in a potential for 50-cents a share
cash flow and use whatever multiple you can come up with and
this becomes the definition of high-risk/potential high reward.MART RESOURCES (V-MMT)
.54 +0.02
We have certainly gone on a lot of adventures in the junior
oil and gas sector over the last two years as the markets have
recovered a bit. As the charts on Page 2 show, if you’ve stayed
with the blue-chips, you probably haven’t made much money.
Through these adventures with some of our favorite analysts,
we’ve gone to the North Sea (Sterling Resources); to Thailand
and Indonesia (Pan Orient Energy); to Guyana (Sagres Energy
and CGX Energy); New Zealand (TAG Oil); but now, Warren
Verbonac with Union Securities suggests an adventure that
gives a new definition to the word (adventure).
He is suggesting Nigeria! Which made us gag at first because
there is arguably no more corrupt country on the face of the
earth. Everyone in Nigeria seems to have their hand out for
something, particularly government officials, union reps and
you-name-it. It’s also the country famous for the “4-19” scams.
You know, those letters you get anonymously, asking people to
donate money for a particular promotion that comes from Nigeria?
Which of course is the bad news and everyone knows
about it.
Take a peek though at a current article in the Economist
about new governments being led by Good Luck Jonathon (now
isn’t that a name to go with—Good Luck) and his attempts to
turn things around for the economy. Which is intriguing because
Nigeria is still the dominant country in Africa, it’s economy
is growing by 7% a year (or about three times that of the
U.S.) and oil is still the dominant exchange earner for the country.
Mart Resources is the name of Verbonac’s suggestion and
Verbonac’s idea is that there are several junior companies following
up, kind of like the North Sea, where when they big plays
were discovered, the big guys moved on. Mart Resources is
coming up with some very interesting plays in the Umusadege
field in Nigeria and the company is currently netting about 1920
bd. Half-way through drilling a very significant play, the UMU 6,
Mart could see its production climb to 3000 to 4000 barrels a
day and might well be on its way to 7500 barrels a day, according
to Verbonac.
Needless to say, this is moving the potential for cash flow
that he suggests could be 34 cents (and anyone who knows
Verbonac knows how conservative he is. Remember he said to
get into Xcite Energy at
.35, but he was happy with a three to
four bagger? It’s since become an 8-bagger…).
Mart Resources is obviously only for those with a real sense
of adventure. But then, stick in a potential for 50-cents a share
cash flow and use whatever multiple you can come up with and
this becomes the definition of high-risk/potential high reward.