Oilexco returns to Drilling

A. Oilexco Returns to Drilling - you should be returning to Oilexco Oilexco ( OIL on Toronto and London ) has the cash flow on a daily 30,000 Barrel production and the potential of the drill bit: Investors are less anxious and have been bargain hunting the stock Focus on the 2008 cash flow estimate of $4.00 plus - the stock is cheap thanks to the recent fire and general market fears. CALGARY, ALBERTA--(Marketwire - Aug. 21, 2007) - Oilexco Incorporated (TSX:OIL) (LSE:OIL) ("Oilexco" or "the Company") and its wholly owned subsidiary, Oilexco North Sea Limited, reports that the semi-submersible rig Ocean Guardian, which is under contract to the Company from Diamond Offshore Drilling UK Limited, has resumed appraisal drilling on the 100% owned Shelley oil accumulation on Blocks 22/2b and 22/3a. The vessel suspended drilling last week when an electrical fire occurred in the engine room. There were no injuries or environmental damage reported as a result of the fire, and the well being drilled by the Ocean Guardian remained under control throughout the entire time. Members from Diamond Offshore Drilling UK Limited, Oilexco North Sea Limited and personnel from the UK Health and Safety Executive traveled on board the vessel to investigate the cause, inspect the damage and review the safety procedures following the incident.
from http://www.amprogram.com

Niko Resources - world class nat gas producer in India

B . Niko Resources*Give me a sign, any sign!When markets sell off like they did last week, any positive sign should be taken to heart. Niko, which recently raised $500-million by issuing 4.762 million shares at $105.00 apiece, has seen its shares tumble with the market downturn. Shares are down about 20% from were Niko raised their money. Insider reports, which were filed late last week, show Niko’s President and CEO buying nearly $1 million (12,600 common shares at prices ranging from $79.30-79.90) of stock through the public market. That’s a nice sign. The current market weakness may have created a buying opportunity. Canaccord Adams Oil & Gas Analyst Terry Peters says that while equity markets are struggling, Niko’s fundamentals are on solid ground. The company has over $600 million in cash, will have access to another $600 million through its credit facility, and is less than 12 months away from the start up of the largest offshore gas field in India that at its current planned peak, would take Niko’s total production to over 450 mmcf/d over the next 24 months, from the current 85 mmcf/d. In addition, the exploration component in Niko continues to provide high-impact potential, through additional drilling at D6, NEC25, D4, Cauvery, and in time Pakistan.
from http:www.amprogram.com

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.

Oilexco - hold for the rally over 3 years

Oilexco now produces 35,000 BOE
Schacter predicts 100,000 BOE in 2010
Cash flow in 2010 - at $70 oil will be more than todays price
At 4 - 5 times cash flow we are looking for a selling price of $52- 60
Hold on provided:
Production/drilling and cash flow follow the projections