Nothing in the Oil Patch; Exiting CEO

CNOOC Limited (CEO) an upstream company, engages in the exploration, development and production of oil and natural gas. As of December 31, 2011, the company had net proved reserves of approximately 3.19 billion barrels-of-oil equivalent (BOE), including approximately 0.27 billion BOE under its equity method.

[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CEO'" symbolprices="178" div_align="right"]

• We bought CEO over a year ago and after getting part way to our high valuations, it has struggled since.

• We recommend selling it now as the valuation range appears to be lower based on forward earnings projections. We will stand aside and wait for a better entry point.

• EXIT CNOOC AT $USD 177.85 (CEO, $177.85) FULL POSITION

• This trade including dividends delivered a TOTAL RETURN: +3.2%