What’s the “World’s Most Secretive Company” that’s “Dry Drilling” in Canada?

You can always count on a good story from a Phase 1 teaser — Phase 1 is the fancy top-of-the-line upgrade newsletter from Stansberry & Associates ($5,000/year, though it’s usually “on sale” for $3,000 when they’re promoting it as they are now), currently edited by Frank Curzio, and it has historically focused on lots of small-cap companies either in the natural resources or biotech space.

Over the last six months or so they’ve spun tales of the “Chi-Tab” computer revolutionizing the world, and of the “Supernova Gold” mother lode, and no matter what the tale is, I always get a ton of questions from my readers. Partly that’s because of the huge marketing reach of Stansberry and the rest of the Agoraplex, but partly it’s just because the stories are enticing.

So what is the story this time? Basically, it’s that Curzio has found a “dry drilling” company in Canada that is guarding “what could soon prove to be the most valuable financial secret in the world” in a new fracking technology. Here’s a little bit from the beginning of the letter to give you a taste:

“Why we spent $20,000 (and recruited a former CIA officer) to track down the tenants of this building

“(They’re closely guarding what could soon prove to be the most valuable financial secret in the world. Early investors could make a fortune in the next few years.)

“The company I’m going to share with you, is the most secretive firm we’ve ever come across in 11 years at S&A Research…

“They’ve never been profiled in Barron’s… The Wall Street Journal… Forbes… Fortune… or any other mainstream media publication.

“We even spent $20,000 on financial software (Capital IQ) – usually reserved for hedge funds – to research this company, and we came up empty. Something we’ve never seen happen before in our business.

“When we called the company’s office they refused to talk to us, and their General Counsel sent us an email stating they would not disclose the information we were looking for.”

I didn’t copy the photo over, but the “this building” part refers to a picture of an office building in downtown Calgary that they say they say is home to this “secretive” company. We’ve seen this tactic used in ads before a few times, showing a photo of the company’s office or building — I’d guess that’s because it reinforces the feeling that these newsletter guys must be for real because they’ve gone there and checked it out, and it gives some confidence that it’s a “real” company and not a fly by night stock promotion or something like that.

And Curzio tells us that this company is secretive because they’re “sitting on such a potentially lucrative opportunity, they don’t want their competitors to know what they’re doing.”

Really? Well, maybe. There are two parts to this — one is the huge opportunity of shale gas and shale oil, dependent on developments like hydrofracking and horizontal drilling, that have opened up lots of new oil and gas fields. That’s certainly true, and when the ad quotes an executive as saying that this is a “once in a century event” it’s a legitimate quote — but that’s not to say this particular company is necessarily at the heart of it. The ad draw the picture of the huge opportunity, which most of us have heard of and is certainly real …

… and then they talk about a specific company that they seem to think will revolutionize this business, and you can then draw the connection between a big opportunity and a big innovation, and start to see dollar signs dancing in your eyes.

The story actually leads off with the silliest part of the tease, this stuff about the company being so secretive that they won’t even expose their address or give the Stansberry folks the info they requested (more on that in a couple minutes), but they do actually get into some of the detail of what they say makes this company and their “secret” so special. Here’s some more from Curzio:

“the main reason I hired my ex–CIA contact to travel over 1,900 miles to go visit the secretive company.

“Because, the new resource find – which the small company sits in the middle of – may be the most potentially lucrative formation to date…

“And they hold the key to unlocking it….

“This new formation is located in a remote territory of Northern Canada, which according to the American Associa