On Friday, HNR had some insider buying. The insider buying activity has been the first one in a quite a while. The CEO, James Edmiston, and Michael Morgan, VP, both added shares.
If we look back at the recent quarterly earnings and conference call, I see the following catalyst in the near future:
– Drilling the first well in Indonesia in June or July
– Some interest by third party to acquire a stake, or entire interest, in Gabon
– Drilling 5 additional wells in Bar-F in Utah, which should prove the land position
– Receiving a dividend from Petrodelta
– Drilling a 2nd rig in Venezuela
Overall, the management has said the second half of the year looks very interesting. I think 2010 will be a big year for HNR. The big catalysts for the year are: production in Utah, update from Indonesia, potential activity in Gabon, and increased production in Venezuela. Each one of these alone can substantially alter the company’s valuation. So far the company has been making strides on each one of these areas.
The management has already hit the ball hard. In couple of quarters we will know how far the ball went.