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Exploration and production company with South American connections ready to rally

At least Gran Tierra Energy (AMEX: GTE, Stock Forum) is not a penny stock any more. As a matter of fact, it has moved from a 52-week low of 90 cents to $6.60.

GTE's business is oil exploration and production in South America. Sounds like there may be a lot of competition. But the company had a good Q1. Revenue for the three months ended March 31, 2008 was $20.8 million as compared to $4.5 million for the same period in 2007. Net income increased to $4.7 million compared to a loss of $6.7 million last year.

Production in Colombia pushed revenue higher. The increase in oil to over $80 per barrel from $46 helped. If world oil prices keep rising, GTE could be in for an even better ride. There was a little bit of negative news in the quarter. The company had to restate some financials from previous years, but the issue seems benign.

GTE has a big positive in the rising price of oil, and a big negative in terms of its modest size. It only has $18 million in cash. But, with a market cap under $700 million, another good quarter or two could push the share price up further.

ABOUT THE AUTHOR
From the news desk of 24/7 Wall St.

This report was prepared by 24/7 Wall St., LLC exclusively for Stockhouse. 

 
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Comments
I definitely agree by the end of summer this stock should have risen quite a bit and maybe it may even be the cure to the company's shitty money supply. I'm hoping the &%^%((%$ oil price will drop in the fall but it remains to seem that every year the bloody thing continue to raise.
I think this article hit the nail right on the head. With oil prices continuing to jump, this company's future looks bright. This is just speculation, but it may seem that if someone were to invest in GTE, they might actually realize enough of a return to afford enough gasoline to commute to work.
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