Follow - up on Oilexco ( OIL on Toronto and London)

B. Oilexco expands assets in the North Sea - $50 Million purchase The market reaction to this news ? A sell off along with everything else that could be sold. Then a recovery - still down on the day BUT what a bargain: Another analyst Fred Kozak raised his twelve month target to $21.00 based on the news set out in the next paragraph. That is in line with Joseph Schacteres $20 target made before this deal was announced. The purchase gives control of an adjoining field and production of an additional 1800 BOECALGARY, ALBERTA--(Marketwire - Aug. 15, 2007) - Oilexco Incorporated ("Oilexco" or "the Company") (TSX:OIL) (LSE:OIL) announces that its wholly owned subsidiary, Oilexco North Sea Limited, has signed a Sale and Purchase Agreement ("SPA") with CNR International (U.K.) Limited ("CNR") for the acquisition of CNR's entire interests in the Balmoral Floating Production Vessel ("FPV"); and the Balmoral, Glamis and Stirling Fields, which currently produce approximately 1,800 barrels of oil per day, net to CNR; and certain exploration acreage, all located in Block 16/21 in the UK Central North Sea ("the Balmoral Properties").
am looking for the stock as a three year hold ( at least ) . The present production is 30,000 BOE plus and 2010 ( according to Schacter will be 100,000 BOE. Fantastic play on the oil price that will exist in three years. A link to oil prices can be found in the Links section in the right hand margin of this blog. The additional drilling will add to that production. At a 4 times cash flow in 2010 - the stock may hit $ 60 - $70.