HKN Inc fka HKNI

[OilStockReport]

Do you think HKN will have continued upside, or is it soon to end?

HKN Inc. (HKN) is an interesting company. HKN primarily explores and develops oil and natural gas properties in south Texas and Louisiana. It also explores for coal bed methane in Indiana and Ohio. It sold its remaining interest in Spitfire Energy Ltd., which operates in Canada. Most notably, in 2010 HKN received a 34% increase in oil prices and 26% increase in gas prices versus 2009. Operating profits for 2010 were 110% higher for the oil and gas segment. Operating expenses for the same time frame decreased 9%. HKN purchased an increased ownership in Britewater International LLC to 52.09% Britewater owns a process of purifying oilfield emulsions.

On March 14, a seven-year contract was signed to use Britewater's technology. This is an interesting play, not only because of the investment in Britewater, but also because it is currently profitable.

P/E Ratio: 49.2
Price to Sales: 3.03
Price to Tangible Book: 0.59