This comes from our mates across the pond, the folks at the Red Hot Penny Shares newsletter. And they’re just as worried about oil in Merrie Old England as we are here in grumpy new Washington, so clearly the newsletter editors over there are just as eager to get your blood bubbling about a hot new oil stock.
I looked at an energy-related teaser from these folks way back in January, by the way, so if you happen to have fond memories of the ‘ol “Torpedo Technique” gas compressor company, that was brought to us by these same Red Hot Penny Shares folks. That pick, by the way, looked pretty good for a little while but is now down about 30% in the last month.
And the Gumshoe just loves it, of course — the more ideas the better. I’d rather not pay for them, though, so let’s see if we can’t figure out just what company they’re talking about here. I think we all know that England has been a significant producer of oil and gas thanks to the North Sea, but we also all probably have been hearing for years about the decline of those fields … so where is this 10 billion barrels of oil?
I’m so glad you asked.
The UK newsletters are good enough to put their disclaimers up top in small print, instead of on the bottom (along the lines of “this isn’t investing advice, even though we’re telling you to buy this stock right this second before taking another breath”), but they still fire up all those greed synapses just as soon as you read on a little bit about that massive pile of oil …
“One little-known London-listed ‘killer driller’ holds EXCLUSIVE rights to extract it from underneath this UK-owned territory”
“The oil in the ground could be worth 1,740 TIMES its current market cap… and gives you the chance to make 233% before the pumps are even fired up!”
And apparently this oil has all been revealed by some sort of mysterious “underground x-ray.” Excellent! Who wants to wager about whether or not they’re just making up that term? Anyone?
They call this the most significant British oil discovery in the last 38 years. I suppose that makes sense — BP was born in Iran as those oil fields were developed about 75 years ago when the Brits were all over the Middle East, but their first big oil field discovery in the North Sea was in 1970, 38 years ago, and I don’t know that anyone has discovered anything big in UK territory since then.
There’s more to the teaser — let me whet your appetite a little:
“Trapped beneath 65,354 sq km of seabed and surrounding ocean is an oil field so deep it could produce enough crude oil to end Britain’s dependence on Russian and Middle East oil for the next 15 years.
“And it’s located in a 100% British owned area.
“In the entire region, there’s an estimated 60 BILLION barrels of oil. Untapped.
“And one small company owns all the rights to 10 billion of these barrels… a company whose technological breakthrough has proved for the first time in 38 years that this oil can be drilled!
“According to the BBC this find is enough to propel the local population into the major league of oil producing nations… making them ‘the richest people in the world per head of capita, much more so than in places like Dubai.'”
Geez, now even I’m getting a little hot under the collar — who hasn’t seen the pictures of those crazy world map and palm tree man-made islands in Dubai, can you imagine what kind of money it takes to even have the chutzpah to build those?
OK, so 100% British owned, 60 billion barrels of oil, one small company … what on earth are we dealing with here?
Well, I’ll throw in one more little tidbit — a quote from the CEO:
“FOGL is now within touching distance of realising the potential of what is probably one of the most exciting high impact exploration projects currently being undertaken anywhere in the world.”
And a little more over-the-top hyperbole from the newsletter ad:
“It all started with a very important meeting with one of the board members of the company that could soon become the talk of the business pages.
“I’d been hounding this guy for months. I was DESPERATE to meet with him. You see, I’d had a tip-off that this company had trained its sights on something potentially EXPLOSIVE…
“A British oil supply that’s been right underneath our own territory for 242 years!Are you getting our free Daily Update
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