Saturday, November 10, 2007
Transglobe Energy Followup
Well, now oil has moved up to around $95 dollars a barrel and I am thinking oil stocks have much upside. Transglobe has not yet moved up as quickly as I would have liked, but it is moving. Recently Transglobe has announced that it has project in the works with the Yemen government whereby they would be able to sell their natural gas to the Yemen government at $2.50 an MFCD, plus by sending out their natural gas they would also be able to get the condensate which as good as oil. This could double Transglobe's earnings. Also, their new field which they bought in Egypt was purchased with a loan denominated in dollars while the dollar is depreciating and the oil has been appreciating rapidly. I'm thinking this spells good things for Transglobe and the value has not completely made it into price yet.