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[Saintjames]

I like BCF but I am well long on them as well. No rush here. When oil prices rise over $80 watch them move. I think there is still some doubt the new management team can keep them afloat despite recent the cash infusion.

Q2 results were lukewarm, announced Aug 14th: PR-USA.net - Bronco Announces Second Quarter Results and Operations Update

An excerpt from the CEO I found interesting:

"A critical component of Bronco's turnaround was a capital infusion. We started the quarter with a working capital deficiency of approximately $22 million and plenty of sleepless nights. Our prospects of quickly generating internal cash to continue to operate as a going concern were slim. Time was not on our side. We were able to find several large shareholders who believed in the Bronco story and had the capability to promptly execute a private placement. These shareholders invested $24 million which gave the Company the financial lifeline needed to get the Company's balance sheet back from the brink of bankruptcy to a position of strength. It allowed us to re-establish good relationships with suppliers and ease the concerns of our bankers. However, most importantly, we now have the time to turn our attention to the task of executing our business plans in a deliberate well controlled manner."

[Saintjames]

Thought I would bump this thread as oil prices jumped 4% today. Might be time to upgrade this from Watch to Buy.

[grotarla]

CanElson Drilling Signs Letter of Intent to Purchase Drilling Rigs




CanElson Drilling Signs Letter of Intent to Purchase Drilling Rigs
CALGARY, ALBERTA--(Marketwire - Nov. 5, 2009) - CanElson Drilling Inc. ("CanElson") (TSX VENTURE:CDI) announces that it has signed a Letter of Intent with Bronco Drilling Services Ltd., a wholly owned subsidiary of Bronco Energy Ltd., for the purchase of a telescopic double rig, a single rig, and related contracts and equipment for cash proceeds of $6.5 million.

This purchase is subject to CanElson completing satisfactory due diligence on the assets, ratification by the respective Boards of Directors and the receipt of all other applicable consents and approvals. The parties will work to enter into a definitive purchase and sale agreement and expect to close the purchase by November 18, 2009.

CanElson is an Alberta, Canada corporation that is engaged in the manufacture and operation of drilling rigs in Canada's Western Sedimentary Basin.

Forward Looking Information

This press release contains forward-looking information related to intentions to enter into a definitive purchase and sale agreement and the closing of the purchase that involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond CanElson's control. Such assumptions, risks and uncertainties include, without limitation, those associated with, loss of markets, volatility of commodity prices, delays resulting from or inability to obtain required regulatory approvals, the effect of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, the lack of qualified personnel or management, and stock market volatility. CanElson's actual achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits CanElson will derive therefrom. The forward-looking information is made as at the date of this press release and CanElson does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[trader999]

So is this a good or bad thing for us stock holders?

[roxxer]

Hi everyone holding BCF . I hope you bought in on the dip from the bad news. i did.
I own 33k now. Even with the bad quarter these guys can weather the storm specially with the 6mil they will get from the drill rig sale , mind you half of that is spent alrdy for the drill program commencing early 2010
Bronco Announces Third Quarter Results and Operations Update | Benzinga.com

[Bella]

I've watching BCF.TO and this thread for quite awhile, I'm not in yet but it looks like they may finally have found a bottom. Volumes are up a bit and the price seems to be rebounding. Just my opinion but I think I will get in this week. As recently as May they were at a 1.50 so I see a lot of upside. Is their some glaring bit of news I'm missing? Just my two cents worth. Thanks Dave

[Saintjames]

Here is a link to the actual Q3 report from Bronco's website. Almost getting low enough for me to avg down a bit.

[Bella]

Thanks, I was just putting together a bid for them when I got your message. I will try .54 and see it they bite. Dave

[Frank Drebin]

Originally Posted by Bella I've watching BCF.TO and this thread for quite awhile, I'm not in yet but it looks like they may finally have found a bottom. Volumes are up a bit and the price seems to be rebounding. Just my opinion but I think I will get in this week. As recently as May they were at a 1.50 so I see a lot of upside. Is their some glaring bit of news I'm missing? Just my two cents worth. Thanks Dave

Hi Dave. I do agree that BCF is at or around the bottom. There is no glaring news that you're missing, just very dissapointing production numbers. In the last 12 months Bronco has put an additional 20 wells online and bitumen production has not increased. This is worrisome in my opinion as they need more production to break even or make a profit, at least 50% more. I'm not completely familiar with SAGD operations but I have read that wells usually produce water before bitumen and it depends on drilling and well formation on how long it takes before the transformation.

In the Q3 report Bronco stated that 50% of their wells were drilled properly, 30% were suboptimal and 20% were in poor locations, which might take years to produce bitumen if they do at all.

Overall, this is a great bargain at 50c if they can get production up. They seem to be doing everything right on the balance sheet to buy themselves time but unless we see $120 oil in the near future they need to get production up. I'm holding 14k long and we shall see how this turns out in the next 18 months.

GLTA

[Bella]

Very helpful and every little bit helps if I had known playing the market meant learn EVERYTHING about EVERY industry and learn it QUICK (just kidding it I'm loving it and the challenge) Well I got in at .54 only 5k but I intend to watch the price over the next few days and buy more if the volumes pick up and the price heads up, I don't hold a lot of longs but I figure I need some diversification and if the US economy does FINALLY catch up then oil will go up with it. Over the last couple of weeks I'm seeing more positives then negative re: the US. Happy trading and GO GOLD! Dave