- CGS Flow-Through 2011-1 LP, as at the end of December, had an NAV of $18.72/unit.
- The top 3 holdings in the fund are Paramount (POU), Guide (GO) and Tourmaline (TOU).
- As we move into 2012, we will begin to liquidate some of the flow through positions taken and use the funds to maximize returns for investors for the next several months until rollover of the fund occurs.
- As discussed before, one of the strategies of this fund, as in CGS Flow-Through 2010-1 LP, is a low cost structure in terms of issuance cost, flow-through premium and other costs. Please see below:
- It is CGS’s belief that the net asset value of CGS Flow-Through 2011-1 LP will improve as the currently low natural gas price improves from today’s multi-year low.
- Another strategy of the fund is a short lock up period so that investors have the flexibility to redeem in a short timeframe. As a reminder, rollover into our mutual fund will occur on or before June 30th, 2012.
We would also like to announce the launch of CGS Flow-Through 2012-1 LP:
Term Highlights:
Why Invest?
- Market Timing is NOW
- Low energy stock prices paint a compelling picture of why now is the time to invest
- Crude prices are expected to remain strong for the foreseeable future. Despite this, junior oil weighted energy names continue to trade at a discount to previous years in similar oil price environments.
- Natural gas prices are currently at the bottom end of the recent $2.50 to $6/ mcf trading range. However, a number of catalysts are expected to drive North American demand growth going forward. These include improved industrial and power demand generation, growing use as a transportation fuel, LNG exports beginning as early as 2014 and expected mass shut-ins of natural gas wells where current natural gas prices remain uneconomic for many natural gas plays.
- After a major correction in both general indices and commodity prices, many junior Canadian energy stocks are currently at 5-year lows in terms of production and reserve trading metrics.
- The combination of improving commodity fundamentals, seasonality and undervalued stocks should provide a recipe for solid returns in CGS Flow-Through 2012-1 LP.
Strong track record
- Our last flow-through fund, CGS Flow-Through 2010-1 LP, provided an after tax IRR of 26.3% in Alberta, 35.2% in BC and 41.1% for Ontario investors in under a year.
- The current and historic group of funds under management have consistently outperformed the markets by an average of 46%
Kind regards,
About CGS Asset Management Ltd.:
CGS is based in Calgary, Alberta, and was founded by Clarence Chow and the full time principals of AGS Capital Management Ltd. and AGS Resource Management Ltd. The partners in CGS have professionally managed investment funds since 2001.
CGS’s focus is on equity, or near equity capital investments in Canadian energy and energy related companies that offer the potential for substantial long term capital appreciation.
CGS managed funds have a unique opportunity to invest alongside skilled technical and operational oil and gas managers. The Company employs experienced oil and gas professionals with executive level experience running private and public companies. Mr. Chow has served as a corporate director in a number of public and private oil and gas corporations and has been employed in the energy industry since the seventies.
CGS Asset Management Ltd. currently manages a number of private equity and flow through funds and a mutual fund, including AGS Energy Fund, L.P., AGS Energy Fund (Parallel) L.P., AGS Energy Fund II, L.P., AGS Energy Fund II (P1), L.P., AGS Energy Fund II (P2), L.P, AGS Energy Fund III, L.P., CGS Resource Fund Ltd. and CGS Flow-Through 2011-1 LP.