Value Microcaps Junior Energy

[Lone Clone]

I have owned shares in Transglobe since 2005. I am now riding virtually free shares since I was lucky enough to sell some when the share price last hit $15.

The strength of the company is savvy management, first moving the focus of the company from Canada to Yemen and then Yemen to Egypt at the right time. In spite of not being so good at wildcats, they have consistently grown production while keeping the share count low, still under 81M FD.

To me the big news was the finalization of the four new concessions announced yesterday. (The market appears to agree, as witnessed by the strong move today.) Now there is a clear path to the 40k boed goal management has set, particularly since one of the new concessions is only a few kilometres from their new discovery in East Ghazalat. (They do hit on a wildcat once in a while...)

Another key factor is getting paid for their production via the Egyptian government agency responsible for this, but that situation is also improving. Recent analyst reports have 12-month targets between $13 and $15; I am going with the latter for a start.

LC