Doral Energy (DEGY) is Still a BUY

Doral Energy (DEGY) is Still a BUY

Precision Exploration-Stock Buying:

Doral Energy (DEGY): $2.70 X $2.75

On 4 June 2009, I presented Texas-based Doral Energy (DEGY) as a Strong-Buy at the $3.00 per share range. Doral is a rapidly emerging petroleum exploration and development company with primary operations in America’s Permian Basin – New Mexico. The company’s Hanson Properties in Eddy County, New Mexico, hold an estimated 6.1 Million barrels of oil-equivalent (BOE) of total proved reserves.

Last month, I detailed Doral’s two pending Permian Basin acquisitions to boost total proved reserves above 10 Million BOE. Up until last week, Doral appeared on-track to acquire all of the outstanding shares of both Slape Oil Company and Flaming S Incorporated -- two actively producing oil and gas corporations with operations in Doral’s primary focus area in the northwestern section of the Permian Basin. Although Doral now reports that it did not successfully complete the acquisitions by the initial closing dates and that it will not seek to extend the closing dates, we remain extremely upbeat in terms of the company’s current Permian Basin operations and in the company’s ability to expand in this key U.S. petroleum zone through strategic acquisitions.

Doral Energy remains a Strong-Buy up to the $3.00 per share level. Maintain open DEGY positions; there is no protective sell-stop in place on this trade.