Welcome back, me! I’ve been vacationing for a week or so, and I’m ready to dive back into the teaser swamps to see what little morsels we might find to discuss.
This one was an easy pick for the Thinkolator’s first project of the week: Nick Hodge is pitching one of his newsletters, Wall Street’s Underground Profits, by holding out the promise of an “emission free oil” — so what’s the story?
Well, as he does indicate once you get a bit further along in his presentation, he’s talking about uranium — which is, of course, not an “emission free oil”… but it’s a catchy turn of phrase for their ad, and nuclear power is certainly the most promising large-scale base load power source that doesn’t generate carbon emissions or air pollution.
So… what is the investment he’s pitching for this “clean energy breakthrough”…. and what’s the company that he thinks could turn a $10,000 investment in to $1,165,000? Let’s check the clues and get you some answers… from the ad:
“Right now, a technology revolution is brewing in the most neglected corner of the energy industry. Insiders are calling it Fracking 2.0.
“Thanks to this once-in-a-lifetime breakthrough, a tiny company you’ve never heard of is now sitting on 4.1 billion barrels of “emission free” oil.
“That’s equal to half the oil reserves of Mexico. It’s nearly as much as Norway — and more than Vietnam, Egypt, Malaysia, Indonesia, and Yemen.
“With this fuel, you could generate 2.3 billion megawatt-hours of electricity.
“Enough to power a city the size of New York for 14.5 years.”
And then on to the specific investment he’s hinting at…
“The energy windfall I’m talking about isn’t locked in the ground overseas. It doesn’t belong to Russia or Syria or Iran. The entire resource is safe and secure in South Texas….
“… this clean-burning wonder fuel was pumped out of the ground very near the legendary Eagle Ford shale formation.
“But it’s much more powerful than oil or natural gas.
“By weight, it has 10,000 times the energy potential of petroleum.
“It has 14,000 times the potential of coal.
“Now — thanks to Fracking 2.0…
“One company can suck it out of the ground for 50 cents on the dollar!”
And apparently this company, thanks to “Fracking 2.0”, is ready to jump on the next (inevitable, they claim) super-cycle surge in uranium prices, because they can get their operations online for only $10 million (not hundreds of millions for building a mine). He describes that “Fracking 2.0” here:
“The process is called In Situ Recovery, or ISR for short.
“Instead of open-pit or underground mining, they pump a special water-based solution into the sandstone formation that contains the uranium with an injection well.
“It then circulates through the formation, oxidizing and dissolving the uranium, and gets pumped back up to a production well.
“The water is then pumped to an on-site facility where the solution is introduced to tanks containing tiny resin pellets. The uranium bonds to the resin via ion exchange.Are you getting our free Daily Update
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“The pellets are then put on a truck and driven to a processing facility. There the uranium is stripped off the pellets, precipitated into a sort of uranium slurry. It’s washed… then dried… and the final product is the same as if it had come from a giant uranium pit.”
And apparently this is much cheaper than mining…
“… this company bo