You probably remember seeing the inflammatory ads for Christian DeHaemer’s Crisis Trader newsletter — he painted a pretty picture for a little company called First Calgary Petroleum that has the rights to a couple promising natural gas exploration blocks in Algeria.
The sell when this ad began was that this was a way for Europe to wean itself from dependence on Russian gas, since it seems clear that Putin will continue to use his leverage over state-owned Gazprom to toy with Western Europe … or at least, to push the Ukraine back into line, if they’re not already terrified enough after the Georgia fiasco.
The ad actually seems to fit right into the slot occupied in 2007 by Dehaemer’s pick Range Resources, the Australian company that has some oil rights in Somalia (in case you don’t remember what happened, the initial oil deal moved Range from a few pennies up to .50, then Dehaemer’s constant ad barrage moved it further still, up to .90 or so during the Summer, then it collapsed back to .50 when the ads dried up and the political situation got dicier, and it’s now trading right around .14). I only call this one to mind because the ads seem to be following the same pattern — I’ve been seeing them all Summer long, ever since they started back in late May. And the shares did get a little spike from the ads, but have been generally trending down with falling natural gas prices for a couple months.
So what’s new with them, other than the fact that the ads continue to hit my mailbox almost every day? They did release “earnings” a couple weeks ago with some general udpates — so this is what we’ve got to look forward to so far:
Probably in the next month or so, they’ll be looking to get funding, probably from European banks. This will mean releasing some solid reserves estimates, so it could take a little longer, but they’re aiming to raise this money in the Fall. That would be news — I imagine they’re hoping that Russian hegemony is still in the headlines when they go hat in hand to the big European banks.
At the end of the year they’re expected to get more approvals from the Algerian government. After that, they’ll actually be drilling and laying pipelines and spending lots of money. We’ll probably hear ...