Stock Trades: Bought More WestFire Energy (TSE:WFE)

Yesterday, I completed my position by buying 500 shares in WestFire Energy at $4.97.

I currently hold 1000 shares at an average price of $4.99 in my HELOC.

Stock Trade Commentary

I finished my due diligence on WestFire and decided to buy the rest of my position. I guess I was too excited since I bought at $4.97 and the price later briefly went under $4.80. Why didn’t I wait 30 minutes before putting that order in? Oh well, got to remind myself that market timing is always in hindsight.

Enough with the lamenting on a few cents, sounds a bit silly given that my holding period could go up to January and my selling price that I would target is $6+ a share. Unless certain conditions force me to sell earlier or the target is met relatively quickly, this is the plan for the next few months.

WestFire Energy will be providing an operational update in the next 2 weeks on their latest wells. They will report the results of 19 net wells: 7 heavy oil wells and 12 Viking light oil wells. These types of wells are low risk and I expect nothing less than 90%+ success to be reported.

WestFire is still on track to drill about 10 more net wells targeting oil before the end of the year. I believe WFE will hit their guidance for an exit rate of 3600 boe/d at 60% oil weighting by the end of December 2010. That is 50% more than their average Q2 production. These wells will add significant reserves to the company in the beginning of next year which should reflect positively on the share price. That explains the potential holding period I mentioned above.

Have you bought any stocks in the energy sector lately? if yes, which ones?

Related posts:

  1. Stock Trades: Sold Midway Energy (TSE:MEL), Bought WestFire Energy (TSE:WFE)
  2. Stock Trades: Bought Equal Energy (TSE:EQU)
  3. Stock Trades: Bought Midway Energy (TSE:MEL)
  4. Stock Trades: Bought More Midway Energy (TSE:MEL)
  5. Stock Trades: Bought More Midway Energy (TSE:MEL)