What’s Fessler’s “Barrel of Oil Six Times Cheaper Than Water?”

Sniffing out a teased stock from Peak Energy Strategist

By Travis Johnson, Stock Gumshoe, July 23, 2014

David Fessler hasn’t gotten much coverage in the pages of Gumshoe for quite a while, so when he started teasing about a company that he thinks will have gains of more than 100% by year-end… and that he thinks can produce oil for 28 cents a gallon using “Futuristic Technology … it seemed tailor made for today’s teaser solutionizing.

Which is not to say that that 28 cents a gallon number is meaningful — he talks about drilling technology like drilling multiple horizontal zones from one rig, and having multiple rigs on one pad, so presumably that means “lifting costs” (not exploration costs, or processing/midstream/upstream costs).

There are 42 gallons in a barrel of oil, so at 28 cents a gallon that would mean the direct production/lifting costs are about $11-12 a barre