“Enormous ‘Oil Kitchen’ Discovered in Energy’s Last Great Frontier” (Byron King)

King teases "Drilling set to begin by the end of 2012" for his Energy & Scarcity Investor Newsletter

By Travis Johnson, Stock Gumshoe, March 19, 2012

The great Gumshoe faithful have been focused on one thing over the last couple days: what the heck is Byron King talking about with his “oil kitchen?”

That term might sound familiar to you — King first recommended a stock using that “oil kitchen” phrase, referring to a large oil source area offshore Namibia, back in July, 2010. Your friendly neighborhood Gumshoe wrote about it at the time, of course, first for the Irregulars and a couple months later for everyone else, and you can see that original story here.

But the pick he was teasing back then was bought out, in a nice short profitable run for folks who happened to buy the stock at the right time … so what is he pitching this time? Well, let’s let him introduce it:

“I’m writing today with some urgent news on a massive oil find off the coast of South West Africa.

“If the idea sounds familiar, it’s because I first covered the story of this discovery nearly two years back. In fact, you may reading a similar presentation to this one. I explained how a tiny Canadian company had discovered a whopping billion-barrel oil find.

“But recently, more news has come to light, as even more oil has been found in the same exact region.

“This is the kind of opportunity that can change your life….

“When I first broke the story two years ago, the world’s leading energy consultants estimated that there could be 2.3 billion barrels of oil in this country’s offshore ‘oil kitchen.’ But now they’ve raised the estimate more than three fold, to 7.9 Billion barrels.

With oil prices hovering above $105 per barrel, that means the find is worth an estimated $829 billion.”

Well, one might assume that if he says “exact same region” it’s still the same company (or in this case, the acquiring company), but let’s check out the details to make sure we get the full story. Here’s some more of King’s tease:

“I call it the “oil kitchen” because it’s the cooking zone in the earth where crude oil formed over millions of years — from the remains of tiny aquatic plants and animals that lived in ancient seas.

“And chances are… this oil is located in rocks that date back 10 million to 270 million years ago.

“Perhaps most amazingly, one off-the-radar company owns a 90% stake in huge portions of this field….

“That means this company… priced at under $4 per share… is sitting on oil reserves which could power the United States for more than an entire year.

“With this massive “oil kitchen” discovery, this company’s stock could soar three-fold… five-fold… even 10-fold… and STILL be grossly undervalued!

“And the best news is you don’t have to send your money out of the U.S. to invest in this explosive overseas opportunity… you can do it easily right through your local broker.

“Once word gets out on this exploration company, it’s likely to start an absolute feeding frenzy on Wall Street.”

What’s with that tripling of the estimate of potential oil? Here’s how he puts it:

“… back in 2009 the world’s leading independent energy consultant released an estimate for this tiny Canadian company’s 90%-owned find — which I’ve code named OIL BLOCK XX13A and…

“According to this highly regarded consultant, BLOCK XX13A was on track to produce as much as 2.3 BILLION barrels of oil…

“Now due to new seismic and geophysical studies, they’ve upped that estimate more than three fold… to 7.9 billion barrels!”

King says that we might see the stock quickly double, triple or quadruple if we get a quick bidding war on the back of this new resource estimate, with companies like Petrobras, Statoil and the Chinese state companies perhaps interested … and, of course, he says that if they don’t get taken over the returns for patient investors could be “1,795% or more.”

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He shows a little diagram surrounding the “oil kitchen” off Namibia, too, with “code name” labels for the exploration blocks — he already mentioned “Oil block XX13A” but he also shows XX14A, XX14B, XX15 and XX16 on the map and says that …

“those are the areas owned by the tiny Canadian company I’ve been telling you about. And beneath those blocks potentially sits a massive 7.9 billion barrels of oil.”

So yes, this must be a tease for the company that bought out King’s tease last time around — and just to make that a bit clearer, he goes on to describe this company, which happens to be a Brazilian firm:

“The leading geologist — a personal friend of mine — whose scientific work led one of the big oil guys to drill deep in Brazil’s distant offshore and discover this massive oil field… recently started his own oil company…

“And his new company bought out the tiny Canadian Oil Company off the coast of Namibia who’s discovered this oil kitchen!

“He’s already helped turn Brazil into an oil powerhouse.

“Now he’s about to do it all over again… but with new company that trades for under $4 a share!”

Byron King is pitching his special report, ‘Oil Kitchen’ Profits: How to Multiply Your Money Through This Massive Oil Discovery, in which he’ll no doubt reveal that ticker and company name for you and probably give some more info … but that, of course, comes to folks who pony up $750 (“on sale,” naturally) for a subscription to his Energy & Scarcity Investor newsletter. But if you’ve read this far you know that we’re not going to subscribe … we’re going to take all those clues, toss ’em into the gaping maw of the mighty, mighty Thinkolator, and, free of charge for our valued Gumshoe readers, confirm that this stock must be …

HRT Participacoes em Petroleo (HRP in Canada, HRTPY on the pink sheets, HRTP3 in Brazil)