“A $5 ‘Cleanfrack’ Stock to Buy Immediately” sez Keith Kohl

Friday File look at a beaten down teaser target ... Plus, a bonus "teensy gold stock" teaser pick ID'd

By Travis Johnson, Stock Gumshoe, July 18, 2012

This article was originally published on May 25 as a Friday File for the Irregulars. It has NOT been updated or revised, and the original reader comments on the article are also included below.

Today we’ve got a couple things to share with you — first, a look at stock that Keith Kohl’s Energy Investor is calling a “Cleanfrack” play and that trades under five dollars; and second, as a bonus, a quick “reveal” of a tiny gold stock that’s being teased by Bryan Tycango over at Asian Growth Stocks.

Keith Kohl’s, it turns out, is a stock we’ve seen mentioned before a few times, and I actually owned it for a while before taking a tax loss last year (how’s that for a teaser?) — but things are changing there, so I thought it was worth a quick look.

For the full teaser-revealing experience, though, I’ll share a few of the current clues with you from Kohl:

“A $5 ‘Cleanfrack’ Stock to Buy Immediately

“Winner of the 2011 World Shale Gas Award for Technological Innovator, this $5/share company’s revolutionary drilling technique is producing so much oil and gas, its revenues went from $30 million in 2009 to over $160 million last year!”

Sounds compelling right off the bat, no? The reaction to hydrofracking and the potential damage it might do to groundwater — and, at the very least, the truly massive amount of water it requires — means a whole industry has sprung up to help solve those problems or mitigate any damage … and where new businesses crop up to build new businesses, newsletters won’t be far behind. The stocks we’ve seen teased or recommended in recent years for this little sector include Heckmann (HEK), Ecosphere (ESPH) and Poseidon (PSN in Toronto, POOSF on the pinks).

But those are all stocks that somehow handle or clean water — that’s not what Kohl is teasing today:

“this fracking company, still trading for less than $5-per-share, has a drilling technology so superior to current methods, it produces up to 80% more oil and gas than a conventionally-fracked well.

“It’s also why this tiny company’s annual revenue has taken off like a Roman candle… going from $30 million in 2009 to over $160 million last year — a gain of 433%.

“It produces so much more oil and gas from wells that some of North America’s major oil and gas companies have already partnered up with it to use their technology….

“But that’s only part of the story…

“The Cleanest, Safest Technology

“You see, this company’s fracking technology is safe.

“It doesn’t use water or nasty chemicals to fracture the shale to get the oil and gas out of the well.

“In fact, it uses natural fluids already found in the well itself.

“I like to say it’s ‘Mother Nature’s Drill Rig.’


  • There’s no danger of contaminating drinking water…
  • It saves millions of gallons of water per well…
  • It reduces truck traffic and CO2 emissions (a typical frack well requires 70 tractor-trailer deliveries to the well site)…
  • It reduces — and in some cases eliminates — damage to the well formation…
  • Nearly 100% of the natural fluid that’s pumped into the well gets pumped out and recycled to be used in the next well…

“And check this out…

“It’s so safe, it’ll be used in New York!

“That’s right! New York has had a moratorium on fracking since August 2010.

“But this company’s fracking technology is so superior and safe — and uses no water or chemicals to do the fracking — that gas-rich Tioga County in New York has agreed to test it out on its 135,000 acres of Marcellus land.”

So that’s the basic spiel — and if you’ve been around these parts for a while you probably recognize that Keith Kohl is teasing … Gasfrac (GFS on Toronto, GSFVF on the pink sheets).

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