Stock Trade Commentary
Just like WestFire (TSE:WFE), I started half a position as well with Equal Energy in my non-registered account. I am looking to complete the position or hop on another opportunity depending on market conditions out there.
Why EQU? Do you remember last Monday I mentioned how NAL Oil&Gas (TSE:NAE.UN) reported a boomer well in the Cardium Lochend area? Well guess who else is operating there, TriOil (TSXV:TOL) and Equal. TriOil has been moving nicely in the last several days because they own more than 50 net sections in that area. Well, EQU owns about 11 net sections and have several working interest in wells with TriOil.
Equal also has an excellent liquid rich asset base geographically distributed between Oklahoma USA and Alberta Canada. For a 9,500 boe/d company weighted 54% to oil and liquids as of Q2 this company is clearly undervalued compared to its buddies out there on a $/flowing boe basis.
Why didnt EQUs share price follow suit? Is it in the penalty box because of its previous management? Sooner or later Mr. Market will notice EQU with nowhere to go but up. Downside risk in my opinion is small.
Dont you wish sometimes your capital was 3x more than what it is to buy and hold all the opportunities you find?