This one comes in from Elliott Gue for his Energy Strategist newsletter — we haven’t looked at one of his ideas in a while (you can see reader reviews of his letter and more info in the right hand column), but he often picks interesting energy stocks …
… and we share a fondness for his favorite deepwater drilling stock (that would be Seadrill, which I’ve written about many times), so I thought we’d take a moment to see what the new picks are that he’s teasin’.
The lead-in makes for a good story, as always:
“Inspired by the TV series Dallas, an unknown accountant beats ExxonMobil to the punch with the biggest oilfield discovery in 50 years. It happened near latitude 0°, longitude 0°, deep in the heart of “darkness.” It redrew the map of the global oil industry, and it could reset your entire financial future…
“The creators of the hit ‘80s TV series Dallas would be surprised to know that “the Ewings” inspired one of the most successful new oil companies of our time.
“It all started when an “ordinary” accountant received a tip that changed his life, and the future of the global oil industry. It has the power to change your life, too.
“On the fateful day, a banker acquaintance happened to remark to the confessedly bored accountant that Senegal, a small country on Africa’s west coast, was hunting for a company to develop its oil and gas.”
Fun story, right? That leads in to the part that doesn’t ever get highlighted, the part where his company spent years looking for oil before they found anything, and spent a lot of money before they started hitting some good discoveries. And the key, we learn, is the massive oilfield offshore Ghana called Jubilee …
“Jubilee: Oilfield of Dreams
“As one jubilant Ghanaian told a BBC reporter recently, ‘It’s out there: oil, oil, oil.’
“In fact, ‘oil, oil, oil’ is thirty-seven miles off the verdant coastline of Ghana, beneath 4,000 feet of water.
“And it was here that our determined accountant from the Emerald Isle discovered his ‘oilfield of dreams’ — and changed the future of the entire nation of Ghana, as well as his own.
“The discovery of the mammoth Jubilee oilfield is proving a game-changer, not just for West Africa, but potentially the world.
“It turns out Jubilee is not just a producing oilfield—it’s a gargantuan find that could ultimately produce in excess of 500 million barrels of oil per day.”
If you’re not super-savvy to the oil market (I’m not either, don’t worry), just note that 500 million barrels of oil per day is a LOT. Reserves, Gue tells us, run up to an estimated 1.8 billion barrels.
Which doesn’t make any sense, someone must have missed a decimal point or mixed their apples and oranges — because if there’s 1.8 billion barrels there and they produce 500 million per day, the field’s done producing in three and a half days. Which would be impressive, and miraculous. But we’ll take the clues in the spirit that they’re given (teasey and slightly misleading hints, or manipulative deception? I’m a friendly optimist and choose the former).
Gue tells us that this is a “historic investing opportunity” that he likens to the oil and gas discoveries in the Gulf of Mexico 70 years ago.
And, as promised, there are some stock ideas for this “historic opportunity” — here’s how Gue teases em’:
“I know several perfectly positioned producers with a virtual lock on the Jubilee field, as well as other exciting new discoveries off the west coast of Africa.”
And yes, one of them is the company run by that “daydreaming accountant” — you may already know this one, because the story’s been told many times and it has grown into a key oil company in Africa, but here are the quick clues:
“An ASTOUNDING 83% Oil Strike Success Rate
“At the top of my recommendation list is the company founded by our restless Irishman. An unlikely oilman, this CEO has created an unlikely oil company. Despite rocketing growth, he understands that his company operates in a different environment—one in which it is no longer acceptable to exploit the developmentally vulnerable.Are you getting our free Daily Update
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