Today, I added 6500 shares of Reliable Energy (TSXV:REL) at $0.375 to my TFSA account.
My current REL position has grown to 14500 shares with an average price of $0.36.
I also bought 5000 shares of Primary Petroleum (TSXV:PIE) at $0.64 and 2500 shares of Bowood Energy (TSXV:BWD) at $0.51 in my TFSA account.
Stock Trade Commentary
Today has been a field day in deploying the proceeds of my last silver sale. As is customary, I enjoy buying when the market is in triple digit losses. Of course, if it repeats these losses over several days it will hurt. On the other hand this is my TFSA account where there’s no margin and where I tend to hold my picks for longer periods.
I spoke with Reliable’s CEO today and am satisfied with the progress so far. REL has drilled 4 HZ wells in southern Saskatchewan and began completion operations on the first 2. The CEO is confident of exiting at the guided number for 2010 and I sensed a lot of confidence in the outcome of the HZ wells. We should be getting an update by the end of the month. This move increases my exposure to the Bakken oil play. Will Reliable prove to be reliable? I will soon find out!
Primary Petroleum has been a holding in my HELOC just yesterday which I sold out at $0.58! Talk about a 10% difference in less than 24 hours that I could have bagged. Anyhow, PIE is the play on land in the emerging Alberta Bakken Basin with 235 net sections of land where the intermediate producers such as Newfield Exploration (NYSE:NFX) are drilling quietly one well after another. Just today Jeffries raised estimates and price target on NFX stating the following:
“Gas to oil transition picks up speed. Enhanced Monument Butte efficiencies, acceleration of North Dakota Bakken development and the emergence of NFX’s Eagle Ford and Alberta Basin positions should all contribute to 30+% oil growth next year. Strong liquidity profile bodes well for potential acquisitions.”
Bowood Energy is in the same category as Primary Petroleum and fits perfectly under the “potential acquisitions” mentioned above. Bowood has 183 net sections in the Alberta Bakken Basin. These are not my typical picks in the oil and gas sector but given how the area is heating up, I am expecting to see newer highs for both stocks unless for whatever reason the market gets another one on the chin.