PPY & Eric Nuttall Interviewhttps://www.marketoracle.co.uk/Article29004.html
My second-largest position is
Painted Pony Petroleum Ltd. (TSX.V:PPY.A),and this is an example of how you can be bullish on natural gas nameswithout necessarily being bullish on natural gas. The company has amarket cap of about $700M and, in terms of production, it's equallysplit between oil and natural gas. Painted Pony has assets inSaskatchewan, which is typically a light oil-weighted basin, andnorthwest British Columbia, which is a real upside. But what I reallyliked is its very clean balance sheet; this is a very debt-aversecompany. PPY has a five-year drilling inventory in the
southeast region of the Saskatchewan Bakken play, where the economics or
hurdle ratefor the required price of oil is very, very low. When I started buyingthe stock, it was trading very cheaply on current production. Legacyappears to be in the sweet spot of the
Montney Shaleplay in Canada. I think fair value on existing production is up to$30, but I don't think the company will be around long enough torealize that.
TER: So, 175% upside from here?
EN: Again, I don't think it will be around that long.It could be easily taken out from $17.50–$20/share over the next yearor two. Internally, I think fair value is around $20/share. So, I'd becomfortable saying it's close to 100% potential upside.