Tuesday, August 16, 2011

Montney Deep Basin well at Bigstone ready to be drilled

Pennant announced today the imminent drilling of their Bigstone well. Click here. This is the well I've been waiting to see drilled since I issued my June "Under the Rocks". Neither Pennant nor Blackbird have moved higher in anticipation of the drilling so the share price offers an attracgtive entry point.

3 comments:

Worldly Trader said...

It appears wet weather has delayed activities of another player in the area, Celtic Exploration, but the prospects for this play are looking good. This is an excerpt from a Reuters report:

Celtic Exploration backs FY exit rate, Q2 profit up
12 Aug 2011 - Reuters
Celtic Exploration backs FY exit rate, Q2 profit up

(Reuters) - Celtic Exploration's CLT.TO second-quarter profit rose despite adverse weather conditions and plant downtime hurting output, and the oil and natural gas company backed its 2011 exit production outlook, sending its shares up 13 percent.

Celtic still expects to exit 2011 with 24,500 boe/d in average production. Capital expenditure is forecast at C$260 million ($262.4 million).

BMO Capital Markets analyst Jim Byrne said the quarter's production decline was expected and Celtic's Resthaven Montney block in Alberta is expected to drive momentum in the second-half of the year.

Celtic expects to bring Resthaven production on-stream by September and it has already begun construction of a gas gathering and pipeline system in the area.

"The wells at Resthaven are expected to produce associated liquids at a rate of 40-50 barrels per million cubic feet of natural gas," the company said in a statement.

On August 12, 2011 RBC Capital Markets has raised its price target for CLT from $30.00 to $33.00/share. They have also given the stock a rating of Outperform. They say, "Despite bad weather in Alberta, its still very hot in Resthaven."

Worldly Trader said...

According to a report by Cannacord Genuity, Celtic Exploration is a possible takeover target. Here is excerpt from that report.

"According to Canaccord Genuity Oil & Gas Analyst Brian Kristjansen, Celtic is the "go-to" natural gas-weighted stock in the Canaccord Genuity coverage universe and is ripe for takeover. The company’s gas resource upside is nearly unrivalled in the intermediate sector (or the large-cap sector for that matter, as the company is the second-largest Montney landholder in the country). Kristjansen believes Celtic's low-cost operations and sub-$2.00-per-Mcf AECO breakeven economics are only set to improve as the company’s scale and increasing infrastructure control evolve. Expect the company’s next catalysts to come in late July when numerous well results are released (Montney activity at Resthaven and Fir and from vertical drilling in the Duvernay at Kaybob) and the company’s gathering system and compression facility is completed at Resthaven."

stateside said...

Thanks Worldly Trader. My focus has been on the gold juniors lately. It's a shame the oil/gas juniors can't get their heads above water. The turn will come....the question is when?

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