Devon Shire
Long only, newsletter provider, oil & gas, small-cap

Kodiak Oil And Gas Valuation Is Double Similar Canadian Producers

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I like the business that Kodiak Oil and Gas (NYSE:KOG) is in. That business is the development of an unconventional oil resource play.

I like the development of unconventional North American resource plays for several reasons:

- They are located in North America and I don't have to worry about the government expropriating assets or someone blowing something valuable up

- These resource plays are more like manufacturing operations than they are traditional exploration and production. There is virtually no exploration risk so future cash flows are much more predictable

- These resource plays are currently being developed assuming extremely low rates of recovery of the original oil in place. As time goes on I...

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