Canadian Oil & Gas Drilling Stakes its Claim: AAV, DEJ, GGR, PGH The Maple Leaf Nation Quietly Gets Actual Oil Out of the Ground. By Dennis Askew Published: March 8, 2011 8:09:11 AM PST Print Email 0 Comment(s) - Post a Comment Rating N/AWhile global speculators run oil prices up and down for profits, and while many oil companies hook speculators on “possibilities,” some Small Cap companies actually produce barrels of oil. And while all the attention these days is focused on such ambiguous terms as world markets, the middle east, and U.S. interests, Canada seems to be minding its own business and; producing.
Have a look at Advantage Oil & Gas Drilling Ltd (NYSE:AAV) which has spent most of the last nine months trading between $6 and $6.50 until it began a rally in December which has taken it to $8.47, from $6.50 to $8.47 is a 30% gain in 90 days. Advantage Oil & Gas Drilling tested the $9 range this month. AAV principal properties include the Glacier property, the Westerose property, the Lookout Butte property, the Brazeau-Ferrier area, the Sunset/Valleyview area, and the Nevis property located in Alberta; three shallow gas properties located at Medicine Hat, Bantry, and Shouldice; and a host of individual properties within the Williston Sedimentary Basin in the southeast corner of Saskatchewan. Advantage Oil & Gas Drilling has probable reserves of approximately 232.3 million barrels of oil equivalent.
And take a look at Dejour Enterprises Ltd (AMEX:DEJ) which has been trading in the $0.30 to $0.35 range for the last seven months until a spike this month took it to its current $0.43 range, a gain of 22%. Dejour Enterprises tested the $0.50 range this month. DEJ holds approximately 130,000 net acres of oil and gas leases in the Peace River Arch of northwestern British Columbia and northeastern Alberta, Canada; and the Piceance, Paradox, and Uinta Basins in the United States Rocky Mountains.
Then there’s Pengrowth Energy Trust (NYSE:PGH) which was trading at the $9 level in Augsut and is currently trading in the $13.16 range, a gain of 46% in seven months on a very strong run up. Pengrowth Energy Trust pays a dividend of 6.48%. PHG has working operations and royalty interests in oil and natural gas properties primarily in the Western Canadian Sedimentary Basin. Pengrowth Energy Trust has proved plus probable reserves of approximately 295.7 millions of barrels of oil equivalent.
And here is a buy on the dips consideration and a foreign oil play:
GeoGlobal Resources Inc (AMEX:GGR) which was trading in the $0.90 to $1 range in August is currently trading in the $0.77 range, a decline from $0.90 of 14%. GeoGlobal Resources tested $0.90 this month. GGR, headquartered in Calgary, Canada primarily engages in the exploration and development of oil and natural gas reserves in India. GeoGlobal Resources has exploration rights through production sharing contracts with government of India in four offshore and onshore geological basins that include the Krishna Godavari Basin offshore and onshore in the state of Andhra Pradesh in south eastern India; the Cambay Basin onshore in the state of Gujarat in western India; the Deccan Syneclise Basin onshore in the state of Maharashtra in west central India; and the Rajasthan Basin onshore in the state of Rajasthan in north western India. As of December 31, 2009, the company had an interest in approximately 1,729,085 net acres in both developed and undeveloped acreage.
I like the entry price level of both DEJ and GGR. DEJ has already tested 50 cents and the deep GGR involvement in oil in India is very attractive. AAV is on a three month run up and I don’t believe it’s topped out. The safest investment play here is PHG, which pays a dividend, and is also on a strong upside swing which I don’t believe has run its course.