We started buying in early May 2014 and continue to add at higher prices~ the results just get better and better!
Visit www.cazapetro.com and review their site ~ especially the March 2014 presentation. We anticipate an updated version soon!
Caza is engaged in the acquisition, exploration, development and production of Oil and Gas through its subsidiary, Caza Petroleum, Inc.: Permian Basin (West Texas and Southeast New Mexico) and Texas & Louisiana Gulf Coast ( on shore).
We first introduced (cazff, caz.to or caza.l) to our Phone Service investors on May 3rd 2014 @ .20 and a few days ago we introduced Caza Oil and Gas via email alert @ .365.
Most of the material that we will go over can be found in IR and PR created by the company.
The major market for it's shares is the LSE then the Toronto and it's shares also trade in the "grey" market in the US. The stock is very liquid and because we have 3 different currencies it may seem to get out of wack! If you want to own this little jewel don't worry about the .005-.01 differences. We are looking for a huge score with this company and have little worry about a few cents.
annual rev 2013- $8.31 million vs $4.97 for 2012
fourth Q 2013- rev $3.38 vs $1.58 million for 2012
1st Q 2014 rev $4.59 vs $1.28 million 2013
Dec 2013 production~614 boepd
March 2014 production~ 888 boepd
April 30th 2014 production for the month was 1000 boepd
On May 29th press release management announced a gigantic well results (Gramma Ridge 27 State #1H) initial production of 1602 boepd with a 52% working interest. Let us assume that after initial blast off and the usual 50% fall in production we end up with 500 boepd~ now we are up to 1500 boepd.
The next well being completed in the West Copperline 29#4H which management states will be a mirror image of the 29#3H which had initial production of 1322 boepd and the interest in the well is 62%~ so we assume after initial 'pop" that we will settle in around 550 boepd~ that brings us to around 2000 boepd towards mid July 2014!
We all know that you must keep drilling because the nature of the beast is that the EUR's continue to get depleted. Additional wells are being planned and result will be released as they spud, drill, frac and pump the "black gold"!!!
Management in an earlier release stated that they anticipated 1200 boepd by August 2014.. I assume after the next release concerning the W Copperline 29#4H the corporate update will dramatically increase production numbers.
www.cazapetro.com corporate website
read about the Oil Boom coming from the Permian Basin www.ugcenter.com
visit www.seekingalpha.com and review Valuedigger his reviews are extremely complete and job well done. ( we have disagreed on the potential of shares that are being issued to Yorkville).
Yorkville during Nov 2013 gave the company $4.3 million in exchange for convert. debt ( potential of a death spiral as known in the business). I have been very leery of this kind of financial platform because of the potential of a dilutive disaster. I believe that to date Caza has issued some 20 million shares to Yorkville and it is in my opinion that at least another 30 million will be issued to them before we rid ourselves of this ugly transaction. Small companies have a very hard time attracting working capital in this over regulated environment . If Yorkville was not part of the picture Caza's share price would most likely be double from the current levels.
It is in our opinion, that the total fully diluted shares outstanding including all warrants, options and the remaining shares to be issued to Yorkville over the next 4-6 months will give us a total number of 260 million fully diluted shares ( we believe that even with the past conversions by Yorkville that we still owe them between $2.5-$3.00 million). Lucky for us that Caza keeps delivering great wells and the cash flow is growing rapidly.
Another great site that will also give you a world of information about Caza~ www.lse.co.uk
Caza's main exchange ( listed Jan 2014) listing offers investors a treasure chest of information concerning Caza.l . The company has numerous media interviews & there are brokerage firms that actually follow and have rated caza.l with strong buy ratings!
P1+P2 2013 19.2mmboe vs 10.8 mmboe 2012
P1+P2+P3 2013 38.2 mmboe vs 27.4mmboe 2012
Company's current PDP & PDNP Bone Spring reserves, the NSAI report has assigned 314 viable drilling locations to the company's current leasehold position in the Bone Spring play.
Apollo Investment Corp- $50 million line of credit~ to date the company has used over $35 million.
Caza has 19 properties in the Bone Spring inventory.
Food for thought: Forecasters predict that the Permian Basin will have the greatest Oil supply growth of any North American Basin Play over the next 5 years!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The 314 drill sites (4800 net acres) are leases that are mostly State and Federal with the primary terms between 5-10 years. One producing well will hold each lease in its entirety.
Total equity ~Dec 31 2013 ~$25.4 million
Huge NOL~~$34 million - shield from taxman!
www.stockhouse.com offers investors another great message board that usually is not as rude as Yahoo.com. The symbol for Toronto caz.to and for the US is cazff and as mentioned for London caza.l.
This past friday volume combined for all three exchanges equaled 8 million. Volume was much lighter everywhere because it is getting closer to summer and people leave early on Friday and some prefer to reduce exposure. Most Oils were 'soft' and prices dipped, but Caza after its recent move held up very well. We may see a little more consolidation near term, but the trend my friend is up up and away!!
Bottom-line: The only negative is Yorkville, but this "bad seed" is slow leaving us and traction will increase on the upside. I believe that if the results continue to surprise investors that the share price could reach .75-$1.00 US by Sept 2014 ( assuming that the market and oil prices don't collapse). I then anticipate that with Q2 and results for the 3rd that management will be able to formulate a 20-30 million share equity sale to institutions ( most likely in London) in order to raise need working capital for 2015 capex.
Low priced stocks have always been risky! Quality low priced stocks that have management that can execute & deliver results can reward investors with a pot of "gold"! In our case it is BLACK GOLD!
We rate Caza Oil & Gas with our Strongest Buy rating!
***We like and own this Canadian Oil***
Zargon Oil and Gas zarff or zar.to ($8.56)
.72 div/year .06/month
see May 2014 presentation
We believe that management is planning a non-core asset sale, which will dramatically reduce debt and increase capex.
2. Triangle ( tplm) earnings report June 9th- I believe that tplm is ready to pop. One of my favorite Bakken Plays.
Of course we still favor axas, kog and nog.
stock price $10.05
***Top 5 picks from last newsletter*****
Note: 4 picks were older picks while 1 was a new recommendation.
ccni .41 current price .45
mqlxf .79 current price .97
mauxf 1.27 current price 1.38
wyy(new) 1.57 current price 1.59
axas 3.30 current price 5.02
ccni - still believe will be bought out - strong buy/hold
mqlxf-- entering a strong growth mode-strong buy/hold
wyy- entering a strong growth mode- strong buy/hold
mauxf- just waiting for the pipeline to be finished-extremely strong buy/hold
axas-2nd and 3rd Q ~resulting from strong well results in the Bakken and Eagleford should cause axas to breach recent all time high~ Favorite Oil for the price and have been scaling up in share purchase. 5* strong buy rating/hold
Other Oils that we own on fire- sn, cwei, clr and wll
Mentioned within "EXTRA" area of email~~PBR great International Oil that should be added to all
We are also recommending a high priced International Oil~ namely~ Petrobras PBR $14.10
Est. Dec 2014 earnings $1.85
est. Dec 2015 earnings $2.38
Once upon a time PBR was the darling of Wall Street ~ May 26, 2008 the stock traded @ $70.50~ six years later the stock trades @ $14.10
last div paid May 2, 2014 ~ juicy juicy!
We like it and we own it !
We have not been paid for any listed investment within this document. We may buy, sell and or hold @ our own discretion.
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PS; Only 6 months till ski season!! Considering what i currently dealing with it cannot be soon enough! As mentioned I will be reaching my 50,000,000th vertical feet of snow skiing!!!!!!!!!!!!!!!!!!!! Think Global Cooling!
S A Advisory, 4700 S Holladay Blvd, SLC, Utah 84117 phone 801 272 4761 or 949 922 9986