The position acquired in Samson Oil and Gas three weeks ago has been sold. A 30+ percentage profit(gross) in less than three weeks from a very low risk investment(due to the Niobrara acreage cash) isn't at all bad IMO.
Venoco, Spartan Exploration, Vermilion Energy Trust, Antler Creek Energy and Whiting Petroleum's convertible preferred stock are some of the possible replacements for SSN. A short-term position in an established offshore driller is another possibility, since the Macondo relief well has nearly reached the blown out well at the target depth.
Some background info on the candidates:
Venoco: Monterey shale player and a take-over target.
Spartan: see earlier post.
Vermilion: Diversified assets, oil weighted. Good yield of 6.5%. Conversion to a corporation will take place in September and dividend is safe. Own some already.
Antler Creek Energy: Strong management team with members from Petrobank and Peerless Energy. Oil focused, but it isn't clear what sort of resources will the company pursue
Whiting preferred's: WLL is oil-weighted and most of the production comes from onshore, which is why I think that the likelyhood of a takeover has increased. Whiting doesn't pay dividends on its commmon stock and I don't want to own securities in an intermediate that have no yield.
UPDATED 15.07.2010
"For the glorious cause of LUCRE I will do anything, be anything"
2 comments:
Very interesting.
About offshore drillers, any favorites, Transocean?
Late reply: Ensco and Transocean. In that order. Lost interest in Vantage because of the ridiculously expensive drillship purchase.
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