Portfolio Update
Choice Resources (CZE.V)
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Maxim Resources (MXM.V)
I have established a position in Choice Resources (CZE.V), a natural gas company that is currently producing in excess of 1,900 BOE/d. What I like about this company is that the management team is very aggressive and they seem to have a definite plan of action for the upcoming year. Here is some additional information regarding the company taken from today's news release:
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CHOICE ANNOUNCED OPERATIONS UPDATE
Choice Resources Corp. ("Choice")(TSX VENTURE:CZE) is pleased to announce an update of its operations from that given in the latest quarterly update.
Choice has drilled 2 horizontal wells to date on its Killam property. Both of these wells are now on stream and producing on a gross basis of over 100 boe/d per well. The wells have not yet reached full production potential. The wells produce oil at 24 degrees API gravity and solution gas is conserved and sold. Choice has an average working interest of 75% in these two wells. During the past summer Choice acquired land in the area and shot a 3D survey over 5 sections of land of which Choice owns 3.5 sections. Current plans call for the drilling of up to 10 wells over the next few months, including 4 additional well-bores over the next 2 to 3 weeks.
At Whitecourt, Choice has 45 sections of land with an average working interest of 40%. Four successful wells have been drilled in 2006. The first well to come off confidential status is the 12-10 well has 11 meters of pay with 22% porosity. This well has been producing at a stabilized gross rate of 1.3 mmscf/d (217 boe/d) since February 2006. The plans are to drill up to 6 more wells in the area this winter. Also in the area Choice as operator will spud a well this week on the Alexis treaty lands. Choice has a 50% working interest in this well. Several zones are prospective in the area.
At Samson, the Company has completed its 60 section 3D seismic interpretation and has committed to 3 wells. The first two wells will spud in early December, with a third well to be decided over the next two weeks. Choice has an option to earn its interest in 39 sections of land. Choice has a 25% interest in this play.
At Kakwa, a fracture stimulation and test is planned by the end of November. Choice's working interest is 40%.
At Pincher Creek, Choice is in the process of licencing 3 wells for Mississipian and Cretaceous targets. Choice has a 75% interest in the Pincher Creek Unit.
The Company is experiencing much stronger gas prices as we move into the winter. These prices have improved from a low of less than $3.00/mcf to currently more than $7/mcf. Current production is over 1,900 boe/d and given the projected drilling program, the Company expects to be over 2,100 boe/d by January. It is anticipated that oil production will represent 25 to 30% of total production by late spring.
Choice Resources Corp. ("Choice")(TSX VENTURE:CZE) is pleased to announce an update of its operations from that given in the latest quarterly update.
Choice has drilled 2 horizontal wells to date on its Killam property. Both of these wells are now on stream and producing on a gross basis of over 100 boe/d per well. The wells have not yet reached full production potential. The wells produce oil at 24 degrees API gravity and solution gas is conserved and sold. Choice has an average working interest of 75% in these two wells. During the past summer Choice acquired land in the area and shot a 3D survey over 5 sections of land of which Choice owns 3.5 sections. Current plans call for the drilling of up to 10 wells over the next few months, including 4 additional well-bores over the next 2 to 3 weeks.
At Whitecourt, Choice has 45 sections of land with an average working interest of 40%. Four successful wells have been drilled in 2006. The first well to come off confidential status is the 12-10 well has 11 meters of pay with 22% porosity. This well has been producing at a stabilized gross rate of 1.3 mmscf/d (217 boe/d) since February 2006. The plans are to drill up to 6 more wells in the area this winter. Also in the area Choice as operator will spud a well this week on the Alexis treaty lands. Choice has a 50% working interest in this well. Several zones are prospective in the area.
At Samson, the Company has completed its 60 section 3D seismic interpretation and has committed to 3 wells. The first two wells will spud in early December, with a third well to be decided over the next two weeks. Choice has an option to earn its interest in 39 sections of land. Choice has a 25% interest in this play.
At Kakwa, a fracture stimulation and test is planned by the end of November. Choice's working interest is 40%.
At Pincher Creek, Choice is in the process of licencing 3 wells for Mississipian and Cretaceous targets. Choice has a 75% interest in the Pincher Creek Unit.
The Company is experiencing much stronger gas prices as we move into the winter. These prices have improved from a low of less than $3.00/mcf to currently more than $7/mcf. Current production is over 1,900 boe/d and given the projected drilling program, the Company expects to be over 2,100 boe/d by January. It is anticipated that oil production will represent 25 to 30% of total production by late spring.
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At first glance, the company's chart looks quite scary, but the indicators finally became positive in the last few days. I believe the price has found its bottom in the $0.60-$0.65 range, but I will not hesitate to sell if I am wrong and there is a significant close below $0.60.
(click image to enlarge)
Maxim Resources (MXM.V)
News regarding flow rates at Maxim's Trinidad property is still pending, yet the stock price just keeps going up. The shares are now trading at $0.52 on somewhat lower volume, but I imagine investors will start to get fed up if the news is not released in the next few days. Rumours have been circulating on the number of barrels that this well will produce, and some are suggesting it could be as high as 1000 BOE/d. In my mind, anything above 300 BOE/d will be impressive. I do not regret selling at $0.45.
Kinbauri Gold Corp. (KNB.V)
Insiders are once again buying shares around the $0.45 level, and the latest news release indicates that things are progressing well at Corcoesto. I will be attending the company's annual shareholder's meeting on November 24th in Ottawa.
Please do your own due diligence, these are not recommendations.
Kinbauri Gold Corp. (KNB.V)
Insiders are once again buying shares around the $0.45 level, and the latest news release indicates that things are progressing well at Corcoesto. I will be attending the company's annual shareholder's meeting on November 24th in Ottawa.
Please do your own due diligence, these are not recommendations.
posted by Eric G. at 1:14 a.m.
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