Stock Trades: Bought More Midway Energy (TSE:MEL)

Yesterday, I added 1000 shares of Midway Energy (TSE:MEL) at $2.90.

Stock Trade Commentary

After having sold my full position on Aug 24 at $3.08 I bought back in with 1000 shares at $2.92 in my non-registered account and decided to add another 1000 shares yesterday in my HELOC account at $2.90 (the low of the day). I have re-established my position in MEL for all the reasons that I have discussed previously in my quarterly update and as a stock pick so I won’t bore you with that. As long as oil is above 70$ a barrel, there is a lot of money to be made by junior oil producers.

Penn West Energy (TSE:PWT.UN) had some interesting news released yesterday. They will be converting to a corporation on January 2011 bringing down their distribution from 0.15 per share to 0.09. It looks like the Cardium trend is heating up again, here’s the part I enjoyed most:

A key area of focus for Penn West has been the large Cardium trend in central Alberta. Within this trend, Penn West’s drilling efforts are rapidly evolving from a small platform of horizontal wells drilled prior to 2010 to large-scale, low-risk development in 2011. Penn West holds in excess of 650,000 acres on the main Cardium trend. Our current Cardium program focuses on the Willesden Green, West Pembina, and greater Pembina areas. Drilling results to-date have exceeded expectations.

Penn West Energy assigned 30% of 2011’s budget for Cardium drilling. Well guess who’s been drilling back to back wells in the Cardium all this time? Midway Energy and Spartan Energy amongst a host of others will provide a nice surprise in their next operational update. The down side will remain sub-$70 oil, as long as we don’t double dip, the chances are small for going under.

Are you currently holding any companies operating in the Cardium trend? If yes, which ones?

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