Unconventional Oil

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Globe says Petrobank seen poised for gains

2007-06-01 05:42 MT - In the News

The Globe and Mail reports in its Friday edition fund manager Daniel Bain is playing it very conservatively with the Thornmark Alpha Fund and one of his favourite stocks is Petrobank Energy Petrobank Energy & Resources. The Globe's Angela Barnes, writing in Best Bets, says the $6-million pooled fund, which began in December, 2005, returned 11.57 per cent in the three months to April 30 and 30.98 per cent over six months. Its one-year return was 23.01 per cent. The fund makes concentrated bets on individual stocks. Petrobank is a Calgary energy business operating through three units: conventional oil and gas exploration and production in Alberta and Saskatchewan, production contracts and exploration opportunities in Columbia, and heavy oil technology being tested at its Whitesands development in Alberta. Mr. Bain thinks Petrobank's patented THAI (toe-to-heel air injection) heavy oil sands recovery technology will leapfrog other oil sands technologies. He has a target of $30 on the shares but believes there is significant upside beyond that because of the THAI technology. The shares ended Thursday at $26.05. Over all, Mr. Bain sees the global economy growing by about 4 per cent plus this year.