“The Great Red Oil War” (Kurdistan and African Oil) — Crisis Trader

By Travis Johnson, Stock Gumshoe, April 1, 2009

Now this is an ad! I love the political baiting and the scaremongering, especially when it’s about the “Reds” — good stuff.

The ad we’re looking at, if you’re just back from a trip to the International Space Station and you happened to miss it, is from Christian DeHaemer for his Crisis Trader newsletter … he claims that the subscription price is $5,000, but it’s hard to imagine many folks have paid that rate — last Spring he was touting it at $995 “on sale” when he was teasing us about First Calgary Petroleum (which was bought out for about a 30% premium to where it stood when he tesed it) and for the last few months he’s been pushing it at a 95% discount for $250/year.

So … does $250 a year sound like a discount when you compare it to $5,000? If so, their marketers are raising a glass to you right now. DeHaemer is extraordinarily prolific, having driven several different newsletters, and he’s used some great teaser ads, so I’ve written about him a number of times — you can review a number of those superhyperteaserriffic writeups here if you want to stroll down memory late, the most recent one was for his EMN Initiative for Breakaway Investor, all about emerging market telecom plays.

(According to his teaser ads, by the way, the “EMN Initiative” was to “go live” yesterday, on March 31 … did you feel the earth shake?)

But these “Great Red Oil War” picks aren’t about emerging markets telecom stocks, of course — we’re talking about small oil and gas companies, for the most part, that might be takeover targets for Russia and China, or otherwise come into play as (if?) the “war for resources” heats up. This is the kind of story that DeHaemer has excelled at spinning for us over the last couple years, from oil investment in Somalia to the “gunboat basin blockade.”

So let’s take a gander at this new one, shall we? There are several stocks teased here, so we may be breaking this one up into a few bite-size chunks …

“Your Spoils of WAR: Three ‘Target’ Companies Strategically Positioned for Gains of As Much As 183 Times Your Money

“These are the three petroleum companies that I’m certain the Great Red Oil War of 2009 will send soaring — no matter which Communist superpower wins it (more on exactly how this could happen below)…

“Your portfolio could be soaring, too, if you’re holding their shares.”

So that’s the shorthand version of the argument — China and Russia are either collaborating and squeezing out the US, or they’re competing with each other to acquire more resources, either way these particular small resource companies should be big winners, we’re told.

Here are the clues we get for the first one:

RED PROFIT TARGET #1: An Africa-focused driller with an ace-in-the-hole

“Unlike a lot of petroleum companies that are struggling to generate exploration and expansion dollars in an economic climate in which oil and gas are selling for peanuts, this regional player is in solid financial shape — with huge assets and estimated 2008 revenues that jumped 78% over 2007…

“They’ve got projects in key oil zones of Africa: Nigeria, Gabon and Cameroon. But perhaps more compelling than this, they’ve also got an ace-in-the-hole: a coveted oil exploration license for the Kurdistan region of Iraq…

“… the fledgling Iraqi republic must be made commercially viable as soon as possible. That means the aggressive drilling and selling of oil…

“The lucky few companies that have exploration deals for this coveted, oil-rich region (like two of the three firms I’m revealing to you now) are almost certain to strike it rich, starting this year.

“You’ll have to move fast if you want a chance at the best gains on this one, though. A foreign takeover may be brewing right now.

“According to a February 13th Reuters article, this dynamic petroleum company:
‘… has received buyout interest from Chinese, Japanese, and Indian energy firms, according to three sources with direct knowledge of the matter.’

“A takeover should mean at least a fast 100% in gains, or maybe a lot more …”

So … we feed those goodies into the mighty, mighty Gumshoe Thinkolator … and the answer is:

Addax Petroleum (AXC in Toronto, ADXTF on the pink sheets)

Here’s that Reuters article about the big companies sniffing around for a possible takeover (includ