Gas Discovery?
Dear Reader,
I just spent 40 hours traveling on 4 different planes across 9 time zones...
Slept in a mosquito and cockroach infested "hotel" and tramped through a "Jurassic Park" like jungle and 100% humidity...
Why?
Because a small group of geologists in a remote corner of the Earth have reported a "WORLD RECORD" oil and gas discovery.
Since the rumors of this discovery first surfaced on the Internet, the entire oil and gas industry has been buzzing about this industry-changing find.
In fact, the initial test results are so extraordinary, that many in the industry (including some folks I genuinely respect) are calling it a fraud.
If the geology is only half as good as these initial tests show, early investors are poised to make gains of 1,000% or more...
Of course, if it's a fraud... well... anyone who invests in this find will probably lose every penny.
In my nearly two decades in the oil and gas industry, I have simply never seen a situation where the stakes are so high.
That's why I recently flew 12,000 miles around the globe to investigate this situation first-hand.
What I found amazed even me.
And I believe I have found a way for investors to make an absolute fortune from this situation over the next few months... although it's probably not the way most people expect.
If you want to get in on what is easily the most exciting investment situation in the world right now, my full report is below...
To help me investigate the deposit, I brought along "Cactus," an old friend. Cactus owns his own oil company and is one of the last true Texas oilmen.
He's a straight shooting Texan and I knew I could count on him for a no BS second opinion.
Once we arrived at the site, the first thing we saw was a test of the natural gas "flow rate" of the newly discovered well...
You see, in the majority of wells of this type, the natural gas sits near the top of the deposit. So naturally, the first thing a company tests is the amount of natural gas that flows from the well.
And I have to tell you, this "flow test" was the most incredible thing I've ever seen in my 13 years as a geologist and investment researcher... and that includes the time I spent on an oilrig off the coast of Florida.
When they lit the gas flowing out of the well, it shot a flame easily 200 feet long and the roar sounded like a jet engine.
Here's a picture I took...
The heat was so intense, it set a couple hundred yards of jungle on fire.
In geologist speak, the well spewed out gas at a rate of more than 700 million feet per day.
(Just for sake of comparison, that's 23-times larger than Devon Energy's headline-making Texas strike earlier this year, which spewed out "only" 30 million cubic feet of natural gas in a 24-hour period—and one of the biggest gas discoveries on U.S. record.)Or, here is another way to look at it:
There's enough natural gas pouring out of this new discovery every day to satisfy the daily energy demand of your home and 6.7 million of your neighbors... or every house in the entire state of Pennsylvania – with half-a-million to spare.
In fact, this company's "flow test" nearly doubled the standing Guinness Book world record for a natural gas flow test. (The previous record was held by the same company on a well not too far from the spot where I was standing.)
Based on these facts, Cactus and I figure the numbers should look something like this...
At today's prices, the value of the find could end up being worth nearly $30 BILLION! That's more than 10-times the current value of the tiny company that made this discovery.However, because there had been some skepticism about the record-breaking numbers, this small company made a clever move...
They brought in Weatherford International, one of the industry's biggest independent oil & gas consultants, to verify the deposit (Weatherford has been in the industry for 37 years... worked in over 100 countries... and provided a wide range of estimates for industry giants like Exxon, so they are well respected in the industry.)
In short, both Cactus and I were seriously impressed with the well and this small company's technical staff. We even talked to a grizzled Halliburton staffer on site and he told us he'd never seen anything like it.
But the amount of natural gas buried here is only the beginning of the story...
While we were there we saw several executives from a major Asian oil company meeting with this company's top executives.
Why were they there?
Well, this is a massive store of natural gas, located right on Asia's doorstep.
I'm sure I don't have to tell you that demand in Asia for natural gas is growing at an incredible rate.
For instance...
Bloomberg recently reported that, "Demand for liquefied natural gas in China and India may surge more than sevenfold by 2025 as the nations boost their use of cleaner burning fuels..."
And The Wall Street Journal adds, "China Plans to Raise Imports of Natural Gas"
It's easy to see why when you take a look at the following chart:
But here's the thing.
The resource is new... undeveloped. The company is too small to build a pipeline and refinery on its own.
Which is why at least 5 major oil companies, in exchange for a small percentage of the profits, are in talks for the rights to partner with this small company.
One of them was the group of executives we saw at the site... a huge Japanese oil company called Mitsui.
The other 4 that have expressed interest in partnering with this small firm are China National Offshore Oil Corporation (CNOOC), Petro China, France's Total, and India's state-backed Petronet.
There are rumors that a sixth firm – a major U.S. player – has expressed interest too. Though we couldn't confirm it.
As you can see... this list is a "who's who" of major international energy corporations.
You see, this discovery is so significant these companies know that even a tiny percentage of this world-record resource could add billions of dollars in profits to their bottom line.
Simply put: the profit potential for this project is beyond huge.
And here's where it gets interesting...
Recently the small company we visited said it could select and announce its new partner by the first quarter of 2010....UPDATE: Partnership deal is happening NOW.
That would be a major development in and of itself.
Because, when these types of partnerships are inked, shares of the smaller firms tend to do very, very well.
In fact, it's a situation I've seen play out several times before in the oil and gas industry.
For Instance...
15% in 3 Days...Then, there's the partnership deal from May 2008 that produced a double-digit gain for investors...
When ExxonMobil partnered with Tullow Oil for a stake in their Jubilee oil and gas discovery, shares of Tullow jumped a quick 15% in 3 days. And it's still trading near a 52-week high as I write.
77% in just 120 days...In short: this new discovery... and its profit potential... is creating intense interest... and when the partnership is announced, which could be sometime in the first quarter of 2010, it could be a huge payday for investors.
Malaysia's government-owned Petronas paid just over $2 billion for a 40% stake in a project owned by Santos.
The deal included the upstream, pipeline, and downstream marketing aspects... very similar to the opportunity I went to investigate.
But as exciting as all of this is, we dug up even more interesting information on our trip...
There might be more in this deposit that just natural gas...
You see, while we were there, this small company was conducting ANOTHER survey...
When I left the site they had less than 1,000 feet to drill to hit what is known as the oil/gas contact – that was almost two weeks ago.
In other words, there might be huge amounts of oil buried underneath all that natural gas...
We won't know until the official tests are finished...
And I fully expect that announcement to come any day now.
Although an oil discovery is not guaranteed, you should understand that a discovery of oil on this site could be a game changer...
Consider...
2,800%...
Petrobras (PBR) discovers oil in 2002 and shares rise from $2.50 to just over $70 over 6 years.
2,000%...
France's Toreador Resources (TRGL), which focuses on the Paris basin, saw its shares rise from $2 to nearly $40 in just under 24 months.
1,333%...
Oilsands Quest Inc. (BQI) discovers oil outside of Alberta in 2005 and investors watch shares rocket from $.60 to $8 in only eight months
So as you can see, just one announcement of an oil discovery can create quick gains.
However, as I write, no such oil announcement has been made...
But, I do expect an announcement of the test results any day now.
And that leaves us a perfect – although short – window of opportunity.
Just to recap, here's what I see going on with this small company...
- World Record Natural Gas Discovery... Confirmed - We have a world record setting natural gas discovery
- Infrastructure Partnerships - First Quarter 2010 – A potential bidding war between major oil and gas giants to partner with this small energy company to help build infrastructure to get the finds out of the ground... UPDATE: Happening NOW.
- Oil Discovery – On going over the next 12-24 months - A very high potential for an oil strike in less than 1,000 ft of drilling which could create a quick move in the share price...
- and...
2010 and beyond
I do have to admit, when I left the States for my trip, I wasn't sure about the people running this small company.
In fact, the CEO is known as one of the most polarizing figures in the oil and gas industry... people either love him or hate him.
But in all my career and studies as a geologist, I've never met more talented guys than those I met at this little company.
These guys are first class...
How a major energy giant like Exxon hasn't hired these guys is beyond me.
I spent the day with these guys pouring over logs, seismic data, map, charts, geos, cores and some of the best computer modeling I've ever seen.
Here's what I saw...
- This little company owns rights to 3.9 million acres
- They've already found two world record gas wells and they have 40 more sites targeted
- They haven't even fully explored the next three oil and gas fields.
You see, the sheer size of these fields are awesome. The geology is one of a kind.
Imagine a fairly good sized coral reef, say a mile by two miles, filled with oil and gas. That's what this is.
Now think about how reefs form - you rarely find one all by itself. They usually occur along a trend (fringing a shoreline).
This small company could easily repeat their success with the well I saw over and over again on its nearly 4 million acres.
Yet, only a few in the mainstream press and investment community are talking about it... so far.
And as I said, some in the investment world are even betting against it.
However, with these developments happening one after another over the next few days, weeks and months, it won't stay off the front pages of mainstream publications very much longer.
In fact, word is already getting around the Pacific Region where these world record discoveries are taking place.
Consider a headline from the industry publication World Oil proclaims,
"... emerging as a natural gas province."And the Asia Pulse reported,
"[the discovery] proves the nation has one of the highest quality reservoirs on this planet."But as I said, it won't stay off the front page long.
For example, the New York Times ran a story, buried three pages deep in the late edition, saying this small company has:
"...uncorked a vast pool of natural gas potentially larger than the United State's total residential consumption of fossil fuels in 2005."
Before we go any further, let me introduce myself...
My name is Matt Badiali.
I'm a geologist.
I've been studying the oil industry for the past 15 years. I've been involved in almost every aspect of geological exploration and drilling.
From my stints on a drill rig in Florida and work as a field geologist for a variety of firms... to my research and teaching positions at major universities in petroleum geology...
What I've learned boils down to this:
Making a fortune from oil and gas, more so than anything else, is an information game.You see, I work with a team of analysts, currency experts, former brokers, and hedge fund managers... and we're constantly leveraging our network of sources.
So we almost always get a jumpstart on finding the big opportunities BEFORE they become mainstream.
For example...
344% & 271% Gains on Chinese Oil – while it was just a back page story
In 2003, China was still a small-time oil consumer... and very much a back page story. But after sending a couple researchers to Shanghai to investigate the situation in China firsthand, we saw with our own eyes the transformation about to take place.
We recommended Petrochina (PTR) and Sinopec (SNP) – two of China's big oil companies. If you bought then and held until today, you could have seen gains as high as 344% and 271%.
Barron's quotes us
In 2004, we were the first team to pick up on the incredible potential of a company called Encana (ECA). It's a unique energy company with oil and natural gas operations throughout North America. What really made them a great recommendation were the millions of acres of mineral-rich land they own throughout Canada and the U.S., which they are constantly developing and earning money on by leasing to other energy companies.
Encana has gone up as much as 136% since we recommended it. My associate, Dan Ferris was even quoted in Barron's for his value based investment research.
101% on a deep-sea takeover
A few years ago I was in Houston, where my team and I met with the CFO of Veritas – a small geo-exploration company specializing in seismic data, used for finding offshore oil. At the time, Wall Street had low expectations for the company. But the rush was on to develop more deepwater and ultra-deepwater basins... my visit impressed me... and Veritas' technology was top-notch.
Shortly after we recommended the company, it won a key government contract to map out oil fields in the Caspian Sea and another data company bought it out. Readers who got in early had a chance to lock in 101% gains.
Most recently, we've been looking very closely at the opportunity I've been telling you about in Asia.
In my 14 years as a geologic analyst, I've never come across a more intriguing situation – both from a geological and an investment perspective.
That's why I've put together an in–depth Research Report that details the situation in full. It's called Tapping into a World Record Discovery.
This Report tells it all: The name and ticker symbol of the small company that made the discovery... the people behind the company... the reasons why the developments are likely to happen... and when... the major companies who are looking to sign deals with this small firm... everything.
Plus, I'll even tell you exactly how I think you should play all this news and what you might be up against if you decide to go ahead and make a move today.
The point of all this is: There are a lot of opinions out there about this stock...
That's why I recommend you take advantage of my special report before you make a move one way or another.
Everything you need to know to come to your own conclusion is included in the report Tapping into a World Record Discovery
The best part is, I'd like to give you this report, free of charge.
In short, it's the first thing you will receive access to if you take a no-risk trial subscription to my monthly investment analysis, called The Stansberry & Associates (S&A) Resource Report.
You see, as a geologist, I focus not only on oil and gas, but also other natural resources including uranium, copper, gold, silver, water, and rare earth metals, just to name a few.
Right now, I'm particularly interested in several gold and silver opportunities.
But... there's one pretty extraordinary opportunity I'm especially excited about right now...
I'm not sure how much you know about the precious metals business, but probably the best way to make money in this industry is not as an explorer... or producer.
Instead, it's to get a foothold on profitable mining royalties.
The way it works is, several smart geologists buy up the "royalty rights" to some of the world's most productive and lucrative mines.
And get this: These guys don't do any digging, production, or actual mining... they simply get paid lucrative "royalties" as the metals come out of the ground. It's an incredibly simple and lucrative business.
One of the first companies to do this in the gold industry was an operation called Franco-Nevada, which got its start in the mid-1980s.
This royalty set-up paid investors an average of 38% gains for 18 years! Absolutely incredible.
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Compounded, that means 2,404% after 10 years... and an incredible 32,000% over the full 18 years... which turns a $5,000 investment into $1.6 million! |
Another company to set up a similar royalty business more recently was a firm called Royal Gold. Again, they don't do any mining, digging, exploring, etc. All they do is buy up royalty streams to lucrative mining operations, and wait for the money to roll in.
Since 2001, the company has returned a whopping 1,954%. In fact, Royal Gold has gone up even when everything else goes down. "Even when everything else went down in 2008, it returned a solid 55%..."
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Consider: During the market meltdown of 2008, while just about every investment in the world got crushed, Royal Gold returned a solid 63% gain.
It's incredible. Owning royalty stakes in the world's best mining operations is a low-risk, inexpensive, and simple way to make an absolute fortune, especially in a precious metals bull market like we're in right now.
In fact, mining royalties may be the best business model in the world.
And I haven't even told you the best part...
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Not too long ago, a company went public on the American Stock Exchange, which does the same thing... but with Silver royalties instead of gold. |  |
Since going public, the shares are up 325%. But as we've seen with other royalty businesses... these gains are just the very tip of the iceberg.
Right now, the potential in silver is absolutely incredible... and this tiny silver royalty company is the only business of it's kind in the world. I expect a safe and simple investment today could return many times your money over the next few years.
If you'd like the details on this situation, I've published everything in my latest report: The Greatest Business in the World. Keep in mind: This company went public in the U.S. just a few years ago. They employ less than two-dozen people... yet bring in more than $150 million a year!
Again, this Research Repot will be among the first things I send you when you take a trial subscription to my monthly research advisory, called The S&A Resource Report.
Is the type of research I do appropriate for you?
I don't know. But let me tell you a little bit about it so you can decide for yourself...
mining secrets... REVEALED
My passion is research... and finding great investments no one else is talking about.
These are the opportunities you're not likely to hear about from mainstream news and media sources... the ones with the greatest potential for the biggest gains.
For example...
- In 2006, I uncovered a tiny company that owned the largest collection of in-the-ground silver resources on earth... an amazing 171 million ounces... plus an additional BILLION ounces it was working to confirm. The amazing thing was, almost no one outside the mining community had even heard of this company, which gave my readers the chance to see gains of 102% over the next 12 months.
- I also found a little-known copper company with a mine that had the longest remaining life of any major open-pit copper mine in the world. But what made this opportunity so interesting was that the company also had another world-class copper deposit, almost as big! Over the next 14 months, my readers had the chance to make 119% gains with this little-known stock.
- Just two months ago, I found a small company (Addax Petroleum) with an inside track on getting big oil contracts in Iraq. We made about 56% in 3 months when a big oil company offered to buy the firm out.
- Recently, I learned about a company that had secured the largest un-mined gold deposit in the world. When I found this, no one was talking about it yet. We are already up 96% since March... with A LOT more to come.
For example...
93% on a small gold company called Cumberland ResourcesI don't know of another Research Service in the country that has a track record as good as ours today.
166% on a Brazilian oil producer called Petrobras
36% on a small oil and gas explorer called Kodiak Oil & Gas
60% on unique gold company called Seabridge Gold
101% on an oil seismic mapping company called CGG Veritas
53% on a steel alloy technology for deep-sea drilling (Allegheny Technologies)
In fact, as of December 2009, we have 20 recommendations in our portfolio. 16 of them are "in the money," including three showing gains of 96% and one at 189%!
This is probably why The S&A Resource Report research also has many mining and energy industry professionals who follow our work:
30-year Amoco Veteran:Of course, I can't say for sure if the S&A Resource Report is right for you. But to help you decide, here's what I propose...
"Matt Badiali's Report my favorite newsletter... and I would recommend it to anyone.
- Mike Hourihan, retired from BP/Amoco after 30-year career
Director Of NYSE Company
"Your letter, in many instances, has confirmed good ideas under consideration and at other times introduced new ideas, which have proven to be very profitable! I look forward to your report each month and find it to be extremely valuable. Keep up the good work!"
- Gerald Wilson, director of a NYSE listed E&P company.
9-Year Energy Industry Veteran
"I know all the big names in energy and energy services... but the S&A Resource Report has introduced me to faster growing, small energy service companies that are performing extremely well. I am very satisfied with the performance of these investments overall."
- Harold Dickens., PhD., 9-years in global energy services
Try the S&A Resource Report for the next 4 months and make a decision whenever you are ready.
Here's what I mean...
Simply start trial subscription today, and you'll have instant access to:
- Research Report #1 – Tapping Into a World Record Discovery
- Research Report #2 – The Greatest Business in the World.
Over the next four months, take your time and decide if the S&A Resource Report is right for you. If not, I'll send you a FULL refund, and you can keep everything you've received up until that point.
How much does the S&A Resource Report cost?
I think it's ridiculously cheap, especially considering all you receive, and the time, money, and effort we put into this work. The truth is, just one of the investment ideas I'll share with you could help you make many times the subscription price.
And it's not just me saying this...
"I think that the S&A Resource Report provides the best financial advice I have ever had, bar none... Parker Drilling Co. I bought at $2.75 and now it is at $5.07 for an 84% increase. Thanks, and keep up the great suggestions."Before I give you the details on how to get started, however, I'd like to tell you about one more exciting and overlooked opportunity you can take advantage of right now in the gold market...
-- Doug Patelli, Albany, NY
"Matt, I have used your advisories a lot. On Northern Dynasty Minerals I made 167% and on Parker Drilling Company 161%."
-- Karl Blanchard, Austin, TX
"I have bought stock in the four companies you mentioned and as of today my profits are in excess of $4,000. Far better results and profits than any previous service."
-- Jared Plumber, Tacoma, WA
"Sold Rowan Companies and a total of $2265.08. As you can see I'm way head of the game. Thanks to your letters... [I'm] up $31,552.93 to date for this year.
-- Jason Murdock, Dover, DE
in the gold business
In recent months, I have been investigating an extraordinary situation...
It's another huge opportunity in the gold markets, which I recommend you take advantage of immediately...
In short: There's a U.S. government-created program that allows you to take ownership of some of the most valuable gold properties on Earth... for just a fraction of their true worth on the open markets.
What this translates to for you as an investor is the opportunity to make many, many times your original investment with very little risk.
The Washington Post calls it "One of the greatest boondoggles of all time."
And The LA Times says, "It's a tool [you] can use to make incredible amounts of money."
Already, thousands of regular Americans have used this government program to make an absolute fortune...
- On February 24th, government records indicate that Rising Sun, MD native Chet Walker used this opportunity to make $12,900 in a single day.
- One group of investors I know has made 2,015% thanks to this opportunity, over the past few years.
I believe you will be very happy with this investment over the next few years. I don't want to say much more about it here, because it is an extraordinary situation I'd prefer to reveal only to my subscribers.
But I explain everything you need to know in my new Research Report called: The Federal Gold "Loophole" of a Lifetime.
Again, you'll get all of the details as soon as you take a trial subscription to my monthly Resource Report advisory letter.
The price of The Resource Report, by the way, is $99 per year.
But today I'd like to offer you the chance to try my research for less than HALF the regular price. You'll pay just $39 for an entire year or my work, including everything mentioned here.
Why so cheap?
Well, I figure the best advertising for my research is to let you see the actual work and the results for yourself. And to encourage you to give it a try, I'd like to give you the opportunity to review The Resource Report at the cheapest price we've ever offered.
And remember: You'll have the next four (4) months to make up your mind.
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In other words, by taking advantage of this offer, YOU ARE AGREEING ONLY TO TRY MY WORK, TO SEE IF YOU LIKE IT. |
If not, we will simply part ways as friends, and you will be entitled to a FULL REFUND. You can keep everything I've sent you, my compliments.
I hope to hear from you right away. There are several extraordinary investment opportunities in gold and silver right now.
I hope you take advantage of them.
Good Investing,
Matt Badiali
Editor, The S&A Resource Report
December 2009
P.S. One more thing: Because oil and energy prices have remained steady over the past year, you have an extraordinary opportunity today to get into one of the world's great energy "hedge funds," at a ridiculously low price.
The guys running this investment have an incredible track record—recently returning about 333% over an 8-year period. They control many of the most valuable oil and natural gas properties in America... and have the world's greatest investor (Warren Buffett) as one of their biggest clients. If you believe at all, as I do, that energy prices will continue to move up over the next decade and beyond, this is probably the one "no brainer" investment that's out there.
As soon as you start a subscription to my Resource Report, I'll send you my full report on this opportunity, called: How to Get Into One of America's Great Hedge Funds, for 60 cents on the Dollar.