Joel Marple

What the New Interest in Saskatchewan Oil Sands Means For Oilsands Quest

BQI is currently in a strong position, they lie in a market where demand will increase substantially while supply at best will remain level. Many problems do exist which make this a speculative and long play such as labor shortages, a lack of infrastructure, in-situ recovery and Sasketchewans govt, but, in the end, oil demand will keep the price higher than the lower limit of profitability ad infinitum. The only real question is how much BQI will hold out for... because they really aren't in the driver's seat. With this much pressure and all the factors, they might have to settle for less than the analysis. I'd venture a guess at around 14-17$, which still will beat out any index's average annual return, even if it takes 4 years. Great buy, but be prepared to sit on it, and be very skeptical when you hear those extremely high estimates... It's possible, but it's a lot harder than price/total barrels. Disclosure: Very Long, Bought at 3.38