Northern1,
-Afren AFR fits the bill doesn't it. So this is my ist of the New Year, though I would have backed Rift, its already on the list. ALso I don't expect 2007 to be a 'great' year for oil and gas or non zinc or gold commodity plays 'in general' but there will be considerable successes in idividual stocks, as always.
AFREN AFR
Company web site
Recently 70 feet of net pay was encountered at the successful Okara field offshore Nigeria, Afren's first opeational effort, including a succesful side-track. The well flowed light oil at a rate of 4000 Barrels per day. Afren market cap at only £106m, and the company has a stated intent to produce at least 18,000 BPD in one year's time.
Its likley the Okara field is of considerable size but even if it were small to middling and allowing no doubt a farm in or fund-raising to fully develop to production, a cap of £200M would be very realistic once producing even 6000 BPD of sweet crude - but there is already more to Afren.
Only last month has the company signed a J/V with the African Gas Development Corporation and other parties to become 'preferred upstream provider' to monetise gas supply from Nigeria Camereoon and Equatorial Guinea. Early days, but this shows the seriousness taken by the region's National corporate organisations of Afren and Afren's ambitions. Afren also has stakes in other licences .
Afren sp Bid 54.5 offer 56.5 at close today. RSI is a gentle 60 plus. The chart is very supportive of a breakout short term horison, there has been a seller who has kept the share back from reaching higher levels and I am assuming this selling is about, complete. The market cap is similar to that of PCI but Afren has the sweet oil.
So Afren AFR is my ist selection to double- or nearly so - in 2007.
H.
