After watching the price of crude oil start rebounding prior to the market open this morning, and seeing that futures were taking off, I put in a low-ball order for more Provident Energy (PVX: chart, web, Y!).  After seeing the price action after the first 2 hours, and not getting filled, I raised my bid for a small 100 share lot to $6.15.  That order filled about a half hour later.

I think a majority of the CANROYS are oversold due to the nuclear fallout from Wall Street, and I still believe there is some significant upside to PVX.

My basis is down around $10 per share now, and will continue to buy under $8, so long as the we continue seeing money trickle back in to the market.

Investing CANROYS, PVX

I bought more Provident Energy (PVX: chart, web, Y!) today, adding another 50 shares to my holdings. Crude oil ($wtic: chart) spiked on the news that Benazir Bhutto was assassinated in Pakistan, and natural gas ($natgas: chart) is holding its own above $7 going into the cold weather season.

I’m playing the trend. I’m in the stock for the dividend, but if the price rises to $13 I’ll definitely take some off the table. 30% price appreciation is too much to pass up, especially when you see it coming. The fundamentals of the company remain intact, and the only other thing that is weighing on the canroys is increasing production costs and the lingering Canadian tax policy.

Investing, Oil & Gas, Royalty Trusts CANROYS, Provident Energy, PVX

Yesterday Provident Energy (PVX: chart, web, Y!) entered an agreement to buy out a privately held company with oil assets in southeast Saskatchewan for $79 million in shares.

The short end of this is that PVX is spending money to increase reserves, and add to their daily production. In fact, they’ll add 1,300 barrels per day of production, nearly all of which is crude. Provident’s proved plus probable reserves are estimated at 3.6 million barrels of oil.

“This acquisition provides excellent strategic and economic value to Provident, improving the quality and supporting the sustainability of our existing southeast Saskatchewan assets,” said Provident President and Chief Executive Officer Tom Buchanan. -Source

A side benefit to this is that 17,900 net acres of undeveloped land are part of the deal, and 100 gross drilling opportunities wait in the wings. To top it all off, the operating costs of the existing wells are under $5.00 per barrel.

This is a sweetheart deal for Provident in terms of reserves and increased production, and if you’re conservative, this is a 4 year payout on a $79 million in stock.

Not bad. Provident lost $0.33 per share today on the news combined with retreating crude prices… If I weren’t so overweight in the stock already, it would be an attractive time to pick some more up.

This smaller acquisition is on the heels of the Capital Energy Resources deal back in May.

Energy, Investing, Oil & Gas, Royalty Trusts, Stock Thoughts CANROYS, oil and gas, Provident Energy, PVX, Royalty Trusts, Stocks