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January 21, 2010 / Jeb

Oilsands Quest (BQI) Concentrating On Oil Sands, New Directors Pushing Company Forward

One thing I have noticed with development companies is watching how new directors influence decisions.  Oilsands Quest last transaction of divesting away from its oil “shale” assets and the resignation of the CEO Hopkins shows to me that it is concentrating on moving closer to production and profitability.

The outgoing CEO is focused on exploration and development.  The new directors from Suncor, Petro Canada and Shell are old oil sand guys who understand how to bring these projects forward.  Plus it brings the experience to increase shareholder value through gaining joint venture partners or potential suitors.  Do not get caught up with emotion as the oil sand assets are there and the reaction to the news item will resolve itself after this initial sell off.  A future suitor for BQI does not want speculative oil shale on the books.  Right now BQI is on trend with other profitable oil sand operators such as Suncor and have assets which are on sale now at under a $1.

I believe with the new management they are making changes to make Oilsands Quest more efficient and effective.  They have a new director who is also currently a director of Suncor, a major oil sand producer and past chairman of Petro Canada.  He has the experience of merging companies, making deals and increasing shareholder value.  This new appointment obviously influenced the decision-making this past week.  I would not be surprised if he considers taking over the new CEO position.

I believe in oil sands and the long term bullish price of oil.  I would like to wait and give another few days to shakeout weak holders.  This is a long term bottom for BQI and if there is not a significant rally in the next couple of days I would be surprised.

I believe the latest move will be short lived and the new management will work on building resources through the reservoir testing, in situ mining development, and possible joint venture or takeover deals.  Let us watch and I believe that we will see a reversal shortly.

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5 Comments

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  1. lou / Jan 21 2010 5:34 pm

    thanks …lou

  2. lou / Feb 4 2010 6:05 pm

    ouch!

  3. robert / Feb 25 2010 7:28 pm

    its really tanking, when will it bottom?

    • Anticipate Opportunities / Mar 2 2010 10:20 am

      It seems as though yesterday could be a reversal.

  4. Joe / Mar 18 2010 9:34 am

    Everyone wants everything yesterday. This is a long term venture. Sit tight and you will make money.

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