Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Catching Up

Since Tuesday's post on the Early Uranium Portfolio*, I was pre-occupied with preparation for a Canadian Society of Petroleum Geologists Luncheon Talk with the lofty title of "REGIONAL UNDERPRESSURE AND GAS-SATURATION IN THE UPPER CRETACEOUS AND TERTIARY OF CENTRAL ALBERTA". These talks are bi-monthly events in Calgary where ~700 petroleum geologists congregate. I ended up tinkering with my PowerPoint presentation until the wee hours of Thursday morning. I'll put a link to the webcast up as soon as it is available.

There are going to be 10's of thousands of wells drilled into gas-saturated underpressured reservoirs in North America. One recent estimate projects an eventual 25,000 wells for the dry Horseshoe Canyon CBM play alone. These types of wells require specialized drilling and completion techniques and the service companies that provide them are experiencing phenomenal growth.

Wednesday was a rough day for resource stocks (all of mine were in the red). I didn't see any company specific problems and my big picture views on energy and metals didn't change overnight. I had alluded to an upcoming dip buying opportunity in silver and that required lower prices. These dips can wipe out several weeks worth of gains over a matter of hours so it pays to look at long term monthly charts for evidence of serious technical damage.

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*The 50% gain for Cameco was a miscalculation (I used a 2 for 1 split instead of correct 3 for 1. It should be 125% but you get the idea).