Dear OGIB reader,
A new sub-sector of the oil and gas industry is about to get much better known—mostly because it’s the most profitable one in the North American energy complex right now.
Few people outside of the ivory towers of Houston and Calgary have ever heard of it. But you’re going to be hearing a lot more about it in 2013.
That’s because North American production of this high octane hydrocarbon is increasing. BUT, just like regular oil and gas, this hydrocarbon has some transportation problems. It’s not the same price in different parts of North America.
In Canada, it’s worth a lot—a lot more than anything. In fact, its premium to WTI has more than quadrupled in the last five months. No other North American hydrocarbon—at any trading hub—can say that.
Right now, this hydrocarbon doesn’t have a daily price quote published in the papers—that’s why nobody knows about it.
And that’s why nobody knows about the junior company with the most prolific production of this highly profitable product.
Imagine a product so valuable, oil and gas processors are competing for it. You don’t see that very often.
This company has potential for 120 wells, just in the sweet spot, where it can drill for this prized and sought-after commodity. It is now part-way through well #3. So, as you can see, there is LOTS of running room for this play to develop.
And because what it produces is so valuable, this company is actually my Leading Buyout Candidate for 2013.
But I pray it doesn’t happen. I know the winning bidder will still get it far too cheap, even at double its current share price. In fact, I hope I get to own this stock for a long time.
For the rest of the story on this highly profitable, early-stage producer, click here.
Regards, Keith Schaefer
Publisher, the Oil and Gas Investments Bulletin