I was looking at Contact Exploration as well (CEX-v). Their market cap is only 20M but management and shareholders would probably want a premium to that. Frankly that stock right now is 0.14 after the news, but hit a day high of 0.24 which was right around my mark of 100% that I predicted for the day. It came back down hard because there were a lot of people selling to make that quick buck, and who can blame them. Those results are very solid but I'd like to see a few more like that. NG isn't the key at the moment because of prices, it's the liquids that add huge value. Paying $30-40M for a company is no joke so I'd rather have them hold on to that. We have too many plays with only so much money to drill and it goes faster than you think.
I'd like to see some more drilling on our Sask plays too...which is all liquids. That's where the money is to be made.
This delay in Quebec is such a blessing in disguise being that NG prices are rock bottom. When things get going prices should def firm up!
Back to CEX...I'm very tempted to grab a few for my TFSA but I'd need to know when they plan on drilling again. Companies that stop drilling for a long time (well we all know what happens to SP). If anyone gets any info on that, would love to hear about it! Thanks!
Rocco
