Sweet 16 Update

[dan_s]

Our Sweet 16 Growth Portfolio was up 1.1% for the week ending August 26. I have now updated all of my forecast models, which members can find under the Sweet 16 tab. Just click on the logo of the company you want to see.

An undated Sweet 16 Spreadsheet will be posted on Monday morning.

All of the Sweet 16 are doing just fine with oil prices holding in the $80 - $85 range. Most of the companies will be reporting increased production in the 3rd quarter, especially those in the Bakken and Eagle Ford. It was extremely wet in the Bakken during Q2, which delayed getting wells completed and even caused some shut-ins. North Dakota has dried out and most of the companies will catch up on completions by the end of September.

PetroBakken, 59% owned by PetroBank, also had delays in the Cardium. Production dipped to 35,300 boepd in Q2 but it will be ramping up sharply into year-end. I talked to the company and they are holding to their year-end exit rate target of 46,000 to 49,000 boepd. If oil prices stay above $80/bbl, the company should have no problem maintaining its dividend.

Mitcham Industries (MIND) will be reporting fiscal 2nd quarter results on September 7. If EPS top my estimate of 12 cents per share (which I think they will) the share price should move higher. MIND is debt free and looking at a very strong 2nd half.

Rosetta Resources (ROSE) looks very good to me. They have some of the best acreage in the Eagle Ford and they are really ramping up production. Check out our new profile on the company.

GeoResources (GEOI) will be hosting our luncheon in Houston on September 30. Sign up today.

TranGlobe Energy (TGA) will be hosting our luncheon in Houston on October 14.

A replay of Brigham Exploration's presentation at our luncheon on August 23 is now available on the website.