Support Forming?

As many of you know from watching your investment and researching over the past year, CanWest has seen better days as well as worse. Currently, we believe that CWPC is in a very comfortable and stable area at its current price of around $4. This area was a level of resistance earlier when going up. First it very briefly paused the stock, and then lent its support before a very powerful move to the upside. Now we have broken through the very important $4 mark and quickly come back.

Those risk takers who have been able to ride out this nasty storm in the small-cap resource stocks probably believe that CWPC (among others) is worth a heck of a lot more than what it is trading at, as do we. Now 250 million barrells of oil from their bitumen strikes is a heck of a lot of oil. Granted their margins will be smaller (should they be able to produce this oil, and not including any extra finds) than that of a traditional oil company, but that is the nature of their specialized industry. Their economical resource discovered on their first phase of drilling is more oil than many other companies out there right now...and they are still exploring! I believe that this stock is going higher, whether they find anymore oil or not!

This may sound ridiculous to many, but by my calculations the company is trading around a $450 million market cap. The sum-of-the-parts is much more than this as Eagles Nest should be conservatively valued at $75 million (this is deduced from the recent prices paid for even less promising claims in the Basin) which puts the rest of their assets at around $375 million. That means that you could have 250 million barrells of oil for roughly $1.50 each AND get a very promising oil shale claim in Pasquia Hills, and a less certain one in Venezuela. Granted you must build the infrastructure to extract the oil, we see this as some of the cheapest oil in the world and its in one of the safest regions!

For those of you without a short-term view and a long-term horizon, CanWest could become that Homerun stock that everyone searches for, but few find. Patience will be key here as the stock consolidates before its next run, which will most likely result in it going north of $10. Although the stock appears cheap here, our market knowledge makes us believe that the stock is possibly a better buy at $5 than at its current $4 due to certain market conditions beyond holders' control (margin requirements and market psychology...among others).

Welcome

This site is being set up in order to help all interested in CanWest Petroleum Corporation (CWPC) access information that we can find. This company is currently engaged in the exploration of Tar Sands in Saskatchewan, Canada just East of Fort McMurray and the McMurray formation. The company has the largest land holdings of any tar sands play mainly through its Firebag East claim held by its majority owned subsidiary, OilSandsQuest. The company itself also has a claim in Alberta known as Eagles Nest. While drilling is currently underway at Firebag East, the company has delayed its drill program at Eagles Nest in order to focus solely on Firebag East. Also, the company has a 90% interest in Pasquia Hills which is an oil shale project. It is important to note that Nova Chemicals (NCX) owns a 10% interest in this claim and has an agreement to purchase all of the output to use at its facilities. Rumor has it that drilling is underway (CWPC cannot comment as they are not the operator...NCX is), but this is an old rumor and has not been substantiated yet.

Although we are personally still positive in our accounts with our holdings of CanWest we understand that the stock has ended up even or down for many holders. We view this as a market shakedown of weak investors and fully expect to be moving again once the news flow picks up. This should be accomplished starting in August with the move to the American Stock Exchange as well as the special shareholders meeting for OilSandsQuest to be held August 14 at 10 AM. After the move to the AMEX the underwriters for the recent offering should issue buy recommendations for CWPC giving the stock some positive exposure in its early days on a major exchange. The OilSandsQuest meeting on the 14th should also provide a boost as they will either that day or shortly thereafter announce the merger with CanWest.

This is not the whole story surrounding this stock, but we view it as a start. We hope to add much more information to the site as time goes by in order to better serve you. Also feel free to add any comments in the comment area and we will address as many as possible. Thank you.