Oilsands Quest: Looking to Breakout

by: Robert Ennis June 03, 2008 | about stocks: BQI    

Robert Ennis

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I'd like to keep this simple and effective. First, I am very long  Oilsands Quest (BQI). Second, I've patiently built my position in the largest oilsands exploration company in Sask and possibly the world. Third, I'm due and so are several smart investors who have been building their positions for the last two years.

So what's the catch? No catch, just an undervalued peak oil play with over 40% institutional ownership. Oh, and many rounds of financing. But is that really unheard of for an exploration play? No!

So now let me be effective and tell you why you might want to buy a little BQI:

  • Company drill results due in next 4 weeks or so.
  • Soon to be pursued JV opportunities.
  • Pilot testing this year that will kill the naysayers.
  • TSX listing, who cares, but maybe?
  • Consolidation in the space thanks to the HUGE capex by the big oil boys.
  • A giddy CEO who's been there done that and playing cards real close to his chest.
  • 10 billion plus barrels of oil that somebody is going to figure out how to get.
  • $130 oil at least for the foreseeable future.

I could go on and on about the upside of an extremely undervalued oil play, but why? Do yourself a favor and look at the oil chart, check out the institutional money in BQI, and make up your own mind: do you want to be long the next Suncor (SU)?

I do...and now just have to sit back and wait.

Disclosure: Author holds a long position in BQI

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This article has 7 comments:

  •  
    Jun 03 08:37 AM
    I own this , having bought at .35

    (And NOT at Doug Casey's rec. of around 5 bucks!) as Uranium Power , which then became CanWest Petroleum , which then became OilSands Quest .

    Due to a bit of trading , my cost basis is below zero.

    I also hope for higher prices as this matures , but , respectfully , your article said nothing new of note specific to that end .
    Reply | Link to Comment
  •  
    Jun 03 10:03 AM
    Robert ; You should tell peoples why SQI stock performance has been so so for a past year.
    Reply | Link to Comment
  •  
    Jun 05 04:40 AM
    I took a look at their income statement and they have no reported revenues until this las quarter, making their net income dismal why is that?
    Reply | Link to Comment
  •  
    Jun 08 07:26 AM
    I'm in Long but I certainly wish I had gotten in at Waldipup's pricing!

    If this company can't make investors happy with oil climbing then I guess it wasn't meant to be. Supposedly, with the current cost of removing oil from sand it makes sense to extract it after oil reaches $45 per barrell and great economic sense if oil goes even higher. What's the chance that oil goes back to $45 per barrell or anywhere near that in the next couple of years. Only if companies like Oilsands and the potential mega-giant PBR get their drilling going will oil come down. Of course, I stand amazed that our nation hasn't changed its stance and announced ANWR and other areas open for business NOW! Oh well ... BQI should breakout.

    I understand that they're coming out with their independent analysis within 6 weeks. I suspect their first JV by years end. Stock will go to $5-6 on independent reports, $7-10 on JV announcement. Once they start showing that they can get it done (actually pump some oil out of those sands) then the stock should climb steadily thereafter.

    I believe the cheapest you'll be able to get into this company is right now (with obvious 10% blips always possible.)

    This, of course, is only MHO and as said earlier I am Long currently.
    Reply | Link to Comment
  •  
    Jun 08 02:08 PM
    I'm long too but there' no guarantee that the geology will be suitable for SAGD production and even if it is there's no infrastructure in the area so it will take years for production to come. But when you start looking at 5 or 10 years out the future could be pretty bright.
    Reply | Link to Comment
  •  
    Jun 14 10:25 PM
    I believe the recent bump to $5.40 is the result of OGX IPO getting 6 billions and all they got is rights to explore some waters off Brazil!

    I'm looking forward to BQI being a 6 billion cap!
    Reply | Link to Comment
  •  
    Jun 25 12:02 AM
    Oilsands Quest's (BQI) professional and experienced Management Team is unsurpassed! They have delivered on EVERY single promise they have made to their shareholders. They have already proven 1.5 BILLION BARRELS of oil in their first Axe Lake Discovery last year. They have now identified three more potential Axe Lakes! This gem is ready to TAKE OFF! 2007-08 Winter drilling results are expected soon and management has already indicated that they will be knock-out numbers!
    Reply | Link to Comment
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