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CanAsia Energy Corp V.CEC

Alternate Symbol(s):  CECAF

CanAsia Energy Corp. is a Canada-based junior oil and gas company. The Company is engaged in the exploration for, and the acquisition, development and production of, crude oil and natural gas reserves. The Company, through its subsidiary, Andora Energy Corporation, is focused on developing the bitumen resources at the Sawn Lake property using steam assisted gravity drainage (SAGD) development. The Company has working interests in, four heavy oil sand leases with 27 sections (24.25 net sections) of Sawn Lake Alberta Crown oil sands leases within the Alberta Peace River Oil Sands area. In the Sawn Lake Central area, it operates with a 100% working interest in two oil sands leases with 11 gross sections (8.25 net sections). In the Sawn Lake South area, it operates with a 100% working interest in three oil sands leases with 16 gross sections (16 net sections).


TSXV:CEC - Post by User

Bullboard Posts
Comment by algroveon May 30, 2013 9:27pm
292 Views
Post# 21464944

RE: What the heck??

RE: What the heck??

If you look at the long term chart on Stockwatch, you will note that this is the lowest it has been since 2005, the year they started operations.

 

It makes no sense to me, as Kataka could be very big if successful.  Even if you assign zero value to it, being a binary outcome, the Thai assets alone are worth more than this.  If you read their MD&A and the two prior NR's carefully, Thai has not been as bad as it looks at first glance.  Then there is Canada, where they have the oil, but are spending about $25 mil. to prove it is economically recoverable.  It all adds up in my view to more than double the current price, even without Indo.

 

I think a large institution wanted out (for whatever reason, "dumb money") and has been feeding the market and, in the absence of reasons to buy by new investors, has been driving the price down relentlesly.  If you look at the volume in the last 8 days, it has been over 1.7 million shares.  That is almost double or triple the normal volume.  I think today was the bottom and the late day reversal is positive.  However, even if this is not the case, if you understand the story and the reasons you are invested in it, it does not matter how low it goes in the short term.  Value always asserts itself eventually.

 

If Kataka is unsuccesful, then there will be a 6 month hiatus before new high impact drilling starts, and many short term investors do not like that, but there is still Thai and Canada.

Bullboard Posts