Energy Summary for Jan. 27, 2016
2016-01-27 18:14 ET - Market Summary
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by Stockwatch Business Reporter
West Texas Intermediate crude for March delivery added 85 cents to $32.30 on the New York Merc, while Brent for March added $1.30 to $33.10 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.60 to WTI ($17.70), down from a discount of $14.25. Natural gas for February added 0.9 cent to $2.189. The TSX energy index added 2.16 points to close at 148.82.
Colombia-focused Gran Tierra Energy Inc. (GTE) lost nine cents to $3.07 on 4.81 million shares, despite the promotional efforts of president and chief executive officer Gary Guidry, who laid out grand plans for the company in an interview yesterday with Colombian news outlet Portafolio. Mr. Guidry told Portafolio that Gran Tierra does not want to simply survive the oil price crash; it wants to "grow organically and inorganically," meaning it wants to drill and to buy. On the buying front, Gran Tierra closed its takeover of Petroamerica Oil Corp. on Jan. 13 and announced its proposed takeover of PetroGranada Ltd. just one day later. The Petroamerica deal added 3,000 barrels a day of production near Gran Tierra's core Putumayo basin assets and its less explored Llanos basin assets, while the PetroGranada deal will increase Gran Tierra's interest in the promising-looking PUT-7 block in the Putumayo basin. (PUT-7 was owned 50-50 by Petroamerica and PetroGranada and was central to the decision to acquire both companies.) Three wells will be drilled at PUT-7 this year to aid Gran Tierra with its "organic" production goals. Gran Tierra will also drill several wells at various other assets, according to the 2016 guidance it released on Jan. 18, which called for a budget of at least $107-million (U.S.) and production of 27,500 to 29,000 barrels a day. Mr. Guidry said in his Portafolio interview yesterday that Gran Tierra's current production is around 25,000 barrels a day. His goal, he added, is to nearly triple it to 70,000 barrels a day within seven years. He also wants the company to have reserves of around 200 million barrels. (That, too, is about triple the current level, based on Gran Tierra's year-end 2015 reserve estimate of 66 million barrels of proven plus probable reserves, as announced on Jan. 21.) Mr. Guidry said Gran Tierra ultimately aims to return to investors three to five times what they invested. Depending on when they invested, that will be a long climb. Gran Tierra's stock traded at nearly $9 in mid-2014, almost triple today's close of $3.07.
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I have been with stockwatch for many years and always found your summary documents useful. Every night I tried to read your summary in gold and energy even when I was traveling because it gave me a good perspectives of the market.
Since you mentioned my name in last night's energy summary, I have to point out the very inaccurate statement made on me and my track records. See the link I provided, I was very few energy investors who saw this correction coming. I called the top of oil in 2013 and became very bearish on China as well as most commodities in 2014. In my newsletter, I shorted oil when it was over 100, shorted copper when it was around 4 and shorted AUD when was over 1 USD in 2014 after I successfully lead my subscribers to underweight gold mining stocks back in 2012. In September of 2014 I guided my subscribers to sell energy stocks, including Canacol Energy when oil was still over 100. By October of 2014 I already sold out almost every fracking play and positions in companies like CNE were greatly reduced. It was not until one year ago, in early 2015 that I made CNE my energy top picks at a little over 2 CAD when I saw they picked up bankrupt OGX gas assets and becoming a gas company. Since then CNE is probably one of best performers in the energy junior, if not the best. You statement of me "promoting Canacol since March 2014" is completely false. Even you spend a little time to talk to any of my long term subscribers, you would have known this is contrarian to the fact. The recent rebound of CNE probably has more to do with the oil rebound and potential leak of the pipeline news since I have been talking about CNE for almost a year. BTW, I don't promote company for the sake of promoting. I never received any compensation from the company. I only told my subscribers on where I am putting my own money in.
http://www.theenergyreport.com/pub/na/are-you-protected-from-oil-price-downside-chen-lin-shares-his-strategy
Your summaries earned your popularity as you peeled through the surface and pointed out many conflicting (sometimes shocking) facts of many junior companies. But I hope you stick with the facts because wrong statement like this may reduce the credibility of this fine publication.
Posted by Chen Lin at 2016-01-28 09:35
@ChenLin this is quite ironic that the industry is asking for IIROC's resignation from BC and asking for a complete overhaul of BCSC. Here is the article read it for yourself and be the judge.
http://resourceclips.com/2015/08/14/scrap-iiroc-fix-the-bcsc/
http://resourceclips.com/2015/08/13/strangulation-by-regulation-the-death-knell-for-b-c-jobs/
Posted by pissed of shareholder at 2016-01-28 10:25
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