fat prophets recommendation

Does anyone know the name of this oil company below recommended by Fat Prophets?

The Small Oil Company Overlooked By The Market…So Far

Which brings us nicely back to the oil price, and the small oil and gas company we think is still being overlooked by the market, despite its shares already jumping 15% in the last month.

As witnessed by our looooooooooong list of BUY recommendations, this is clearly one of our very favourite small oil companies…

Report Date BUY Recommendation Price
December 2005 98 cents*
January 2006 $1.20*
October 2006 $1.55*
January 2007 $1.22*
March 2007 $1.40*
July 2007 $1.52*
September 2007 $1.40*
May 2008 $1.00*


Here are some of the things we like about this oil company…

Their strategy - enhancing production from aging oilfields - lowers the risk profile of the company.

They have 100% ownership of the second-largest oilfield in Turkey in historical production terms. If they can increase the recovery rate to closer to typical averages, they would have potential access to an additional 45 million barrels of recoverable oil. For a company worth a total of around $90 million, that's a lot of upside potential!

The company recently began its first drilling programme on its second major asset, a Western Turkey gas field.

To date, seven gas discoveries have been made out of seven wells drilled in 2007 and 2008. You can't get a better strike record than that.

Then, just last month, the company trebled its project portfolio by acquiring five projects totalling more than 19,000 acres in a prolific hydrocarbon region of central California.

Unusually for a junior oil company, the company is profitable, has little or no debt, AND is dividend paying, trading on a trailing dividend yield of around 5%.

Add all this together and it's not surprising we've recommend the company as a BUY a full 8 times. We concluded one of our most recent reports about the company by saying it "…remains one of the most undervalued plays in the Australian oil sector."

Today the company's shares trade at around $1.16*, meaning they trade below the price we were happy to recommend them as a BUY on 6 previous occasions. In our view, that still leaves plenty of upside for new investor's at today's price.

On top of that, we continue to remain very positive about the long-term oil price. It may not feel good at the petrol bowser, but we think it's a good thing when you consider it from an investment in small, promising, undiscovered oil companies. Only the future will tell.