Position opened: First purchase on September 17 2007, total average cost of $0.084 CAD

Position closed: Last sale on November 09 2010, total average proceeds of $0.176 CAD

Hold period: 3.14 years

Rates of return: 110% (simple) and 25.5% (annualized)

While this investment was a “deep book value” play, I had also honed my skill set at this point to include other factors. At the time of this investment, crude oil was trading anywhere from $75 USD to well over $100 USD, so producers of crude oil could arguably be valued based on the amount crude oil reserves they were reporting. At the time that I purchased Circumpacific, the market was valuing the company reserves (per barrel) in the single digits. Add to that the fact that the company was cash flow positive and was ignored by the market (too small), and it spelled opportunity. The market eventually noticed, and Circumpacific was acquired in November of 2010.

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