GO.A – Galleon Energy

I purchased Galleon Energy (GO.A - TSX) yesterday and here are the reasons why:

-It is primarily a play on natural gas and as a result has dropped dramatically along with the price of gas.
-Have a very large land base 8 million acres.
-Assuming 7.32 Alberta spot prices
-Have a history of exploration success.
-Have the potential for good production growth
-They had some production delays in the past however (according my favorite energy analyst Joseph Schachter) they are expecting increased production by the end of the year.
-Current P/E 63.2
-Projected 2007 P/E 26.19
-Projected 2008 P/E 11
-Located in politically stable environment

(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice.)