A teaser from Lysander72

By lysander72, December 26, 2011

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.


Many investors spend countless hours scouring insider trading reports, reading tedious geological reports, and spending thousands of dollars on newsletters in an attempt to find the perfect junior oil explorer. And when they are confident enough to invest their hard earned money, they spend numerous sleepless nights waiting and worrying. And they should, you have better odds at a Las Vegas craps table than finding a successful small cap oil explorer. Wouldn’t it be easier if you knew where the oil was and just had to pump it up? Of course! This company knows where 40 million barrels are, they have access to millions and millions more. And you can get ten shares for the price of a daily newspaper. (Even more for the price of a Sunday paper.)

Conservatively speaking, expect a return of 466.3% or more! Our company (OurCo) is a new entrant in the field of EOR (Enhanced Oil Recovery). They have the rights to 40 million barrels of original in site oil. Using conventional means oil companies can retrieve roughly 25% of their discovered oil. Using EOR another 5-15% can be recovered. So OurCo knows where 40 million barrels lies. Assuming a very conservative 10% recovery, OurCo has 4 million barrels of oil just waiting to be pumped out. OurCo has a market cap of $8 million dollars today, ergo you are paying just $2 a barrel! Lets now leave this bizarro world and attach a realistic value of $9.32 to each barrel and our insane market cap of 8 million becomes a more sane 37 million for a nifty return of 466.3% And this is if OurCo makes no further acquisitions, but remember they have access to many millions of additional barrels.

Sounds too good to be true? Not to a famed investor, the StockGumshoe, who while not actually recommending OurCo has almost done so. You see OurCo is Terrex Energy (TER.V, TRXYF) who received a loan from Sandstorm Metals and Energy (SND.V) which provided the funds for TER to acquire their second property in return for a royalty on TER production, which implies SND is confident in the project, and since the GumShoe is an owner of SND, it seems too obvious to say what his views on TER are.

There you have it, a junior oil company, market cap under 10 million, with no discovery risk and almost recommended by one of the great investors of our time. BUY NOW. Oh, well wait until the markets reopen Wednesday then.

Leave a Reply

Be the First to Comment!