TLM $45.43 Talisman Energy ** Stop $43.00 **
Talisman dropped like the proverbial rock when the sector crashed but actually hit bottom sooner and rebounded stronger than many others. TLM is a very successful driller and considered to be a take over target. I am not putting any insurance on this play given the cheap option price.
Talisman Energy Inc. (Talisman) is an independent international upstream oil and gas company whose main business activities include exploration, development, production, transporting and marketing of crude oil, natural gas and natural gas liquids. The Company's operations, during the year ended December 31, 2004, were conducted principally in four geographic segments: North America, the North Sea, Southeast Asia and Algeria. The Trinidad Angostura project began production in January 2005. Exploration is being advanced in other areas outside the principal geographic segments, including Alaska, Colombia, Qatar and Peru. During 2004, total production averaged 438 million barrels of oil equivalent per day (mboe/d) and the Company exited the year producing 452 mboe/d in December. In 2004, the Company drilled 641 successful wells.
Jan 2006 $50 CALL TLM-AJ @ $2.10
No insurance put due to cheap option
Entry (8/17) $45.00
HP - $58.00 Helmerich Payne ** Stop Loss $48.00 **
HP fell from $60 to $53 and actually led the sector in the sell off by a couple days. The jump from $40 to $60 in the prior two months was plenty of incentive to take profits. HP presented at the Enercom Conference in August and I was very impressed. From the +$20 point jump since June it is obvious others had already found this driller a compelling buy. No insurance put due to the cheap option.
Helmerich & Payne, Inc. is primarily engaged in contract drilling of oil and gas wells for others. It is also engaged in the ownership, development and operation of commercial real estate. The Company is organized into two separate operating entities: contract drilling and real estate. The Company's contract drilling business is composed of three business segments: United States land drilling, United States offshore platform drilling and international drilling. The Company's United States land drilling is conducted primarily in Oklahoma, Texas, Wyoming, Colorado, and Louisiana, and offshore from platforms in the Gulf of Mexico and California. The Company also operated in eight international locations during the fiscal year ended September 30, 2004: Venezuela, Ecuador, Colombia, Argentina, Bolivia, Equatorial Guinea, Chad and Hungary. In addition, the Company is providing drilling consulting services for one customer in Russia. Its real estate investments are located in Tulsa, Oklahoma.
MAR 2006 $60 CALL HP-CL @ $3.20
No insurance due to cheap option
Entry (8/17) $54.00