Goombarh Flash 29, August 17, 2011
New Shale Prospect - Shoal Point Energy - SHP on CNQ Exchange
Good Day,
Found another compelling prospect. Shoal Point seems to be drilling and testing on old oil property with very thick shale and siltstone layers, over 100's of meters thick, due to folding from geologic action. The shales also appear to have large and minute fractures.
The Goombarh interprets from his reasearch, that Shoal have found oil for sure. The only variable is whether they can economically recover it. The basin that they are in is large, in the billions of barrels contained, and they have lots of ground in area. Now with the shales being so thick and interspersed with siltstone, and being possibly fractured already, this is a very compelling situation. The oil may flow freely. They already seem to say that the oil flow is in the range of 100's of barrels per day without further fracking.
Link to their corporate presentation:
Link to their well testing news:
This is not an easy stock to buy, as the CNQ is unquoted and very illiquid. I am in process of accumulating a position. Share price is around .20 Cdn.
Until next time,
Marco G.
PS:
International Frontier Resources has moved up 50% from last Flash and holding tough.
Primary Petroleum is moving today up 25%
Anglo Canadian Oil moved up on news a few days ago.
Donnybrook Energy is moving slowly on low volume.
In Summary, there is a starting recognition of Shale oil plays in North America. This is early days for some of these plays. Check Seeking Alpha and search on Shale oil and read the many authors writing about shale oil. Good Luck to you all.
Posts
Marco,
ReplyDeleteCan you give us an idea of your sentiment regarding a few of your previous names? Silvermex? Great Basin? Thanks.
Hi Readers,
ReplyDeleteMy conviction for previous names of Silvermex and Great Basin still holds, as great stocks with great management and improving production. I would recommend them to anybody, even my mother. I believe these two have great chances of giving high double digit returns going forward.
However, I am after stronger returns, than a double; I am after multiples or triple digit percentages in my stocks.
From my research and thinking, I have come to conclusion, that it is early days in shale oil and that there is a big rush for large companies with large monies moving into this area. Witness the news for Chesapeake (CHK) (http://seekingalpha.com/article/284410-if-sm-energy-is-a-great-mid-cap-chesapeake-is-a-fantastic-large-cap), an agressive yet business conservative oil company that essentially said their marcellous shale land makes their valuation a double from now.
Contrasted with mining, (and even regular oil exploration for reservoirs) the oil exploration in shale plays is not as risky in my opinion. The shale is in a layer and seen by seismic. The shale is everywhere. It is a major land grab by the players. It is not a question of finding oil, but in execution of the drilling and fracking required. This in my opinion is significantly lower risk than mining.
Therefore, I find that the Alberta Bakken has signs of being another ND Bakken rush, with good juniors there poised to gain multiples as the area gets de-risked.
The majority of my portfolio is now in junior oil stocks.
Good Luck to you all.
Marco G.