Stock Trades: Bought TriOil Resources
Yesterday, I bought 1,000 shares of TriOil Resouces (TSXV:TOL) at $4.30 in my HELOC account.
Stock Trade Commentary
TriOil has a very nice package in the Cardium Lochend area, 56 net sections to be exact with an inventory of 150 wells. Many competitors are active around them such as PetroBakken (TSE:PBN), Tamarack Valley (TSXV:TVE), Equal Energy (TSE:EQU) and NAL (TSE:NAE). In their last operational update, one of TOLs wells came in with a disappointing IP30 rate of 118 bbl/d which might explain why it hasnt been getting a lot of love lately.
Investors should not expect every Cardium well to come out with above average results. Cardium locations are not created equal and as such this has to be expected, companies will hit all kinds of reservoir quality. The company has 5 more wells in the area to report on by the end of January which will make a significant impact on the direction of the price. ??Needless to say, I am optimistic based on encouraging results from TOLs neighbors. Add to that a land package in SE Saskatchewan with Bakken oil prospects and you got yourself decent upside potential.