A few reasons why I own Canacol Energy and what I expect.
Read the full article at: www.pennyminingstocks.com
I continue to look at opportunities in the mining space but feel the oil and gas space is tremendously undervalued at the moment and therefore have found an opportunity in Canacol Energy.
I purchased shares of Canacol Energy (CNE:TSX) at $2.50 on January 6th.
Here is why.
1. Production increases. Canacol is expected to quadruple natural gas production this quarter. Strong cash flow is expected.
2. Insider buying. Insiders have been buying recently in the open market.
3. Drilling catalyst. A new well was drilled recently (Oboe 1) and results are expected in the next couple weeks. Positive results would lead to a share price re rating.
4. Updated Reserve Report. Every year oil and gas companies issues an updated reserve report. This is expected in the next 6 weeks.
As you can see lots of irons in the fire for Canacol shareholders in the next 6 weeks before the end of the quarter. If everything comes together I can see the stock easily move over $3 in the short term.
