If you understand current US energy needs, then you understand why Grid Petroleum (GRPR) remains a BUY
Grid Petroleum (GRPR) – which we initially brought to your attention in mid-January – remains a Strong-Buy up to the $1.00 per share level. Grid is our next huge projected winner from the petroleum-rich state of Wyoming – home to some of our biggest energy profit-stocks ever including Ultra Petroleum (+10,000%) and Pennaco Energy (+660%).
Grid has acquired a 100% working interest in the West and SE Jonah Prospects in Wyoming, targeting tight-gas-sand reservoirs with significant natural gas resources. The prospect is located just 6 miles southeast of the prolific Jonah Field, which has reserve estimates ranging from 8 to 15 TCF (Trillion Cubic Feet) and produces from an excess of 500 wells.
A recent Schlumberger report shows Grid Petroleum’s Jonah prospects at a high of 1.28 TCF with an 80% recovery factor – and that’s just on 2,600 of the 3,700 acre lease that’s been evaluated thus far. Even if GRPR recovers only the projected estimated base of 292.4 billion cubic feet – that’s still $1.17 billion at today’s market price for natural gas.
As you continue to build your strategic position in Grid Petroleum below $1, keep in mind our 5 tenets of successful oil and gas investing:
-
Per capita, the United States has a far greater appetite for fossil fuels than the rest of the world – so you should be heavily invested in this energy subsector.
-
Progressive American legislation is steadily mandating the resurgence of US-based petroleum production back to 1973 levels, which to this day remains a world record – and thus, your energy-investment focus should be on emerging US oil and gas stocks.
-
The US Geological survey has thoroughly defined the reserve structures for both oil and gas throughout our 50 states, and Wyoming offers one of the most direct paths from exploration to production – thus, your US petro-stock portfolio should include this often overlooked state.
-
Our Bureau of Land Management recognizes Wyoming’s vast petroleum reserves and the fragile balance of nature as reflected in tight scope-restrictions on drilling, which makes Wyoming the perfect “pay-dirt” situation for junior oil and gas exploration companies to return value to their shareholders. And thus, it is these junior companies, not the majors, that offer the best risk/reward structure for us as astute stock speculators.
-
Two common characteristics of recognized natural gas reserves throughout Wyoming are “shallow” and “retrievable” which means wells can be quickly and economically completed in about 72 hours, especially in the Jonah area where Grid Petroleum is mapping out what could be the next major discovery.
Translation: Buy GRPR now while the “seed level” shares below $1 are still available
| Apollo Investment Corporation (AINV) |
| Apollo Investment Corporation (AINV) was initially recommended as a Strong-Buy in August of 2009 at the $6.50 per share level. The stock has performed well following our 2009 buy-signal having moved up to an interim high of $13.69 on 26 April 2010. That’s an upward move of approximately 110%. No doubt many of you took partial profits during that initial price run. In early July of this year, the AINV share-price pulled back to an interim low of $8.90 before rebounding in recent trading to the current $10.50 range. Apollo Investment Corporation is a New York-based BDC (Business Development Company) that generates both current income and capital appreciation through debt and equity investing in middle-market private companies. Apollo recently announced its first fiscal quarter 2011 dividend of $0.28 per share, payable on 1 July 2010 to stockholders of record as of 17 June 2010. We see AINV moving higher over the next few business quarters. For those who already own AINV, we expect to announce our next Profit-Zone alert during the first quarter of next year. |
| Current Opinion: Initial share-price increase as high as 110%; Maintain open AINV positions |
| Atlas Pipeline Partners (APL) |
| Atlas Pipeline Partners (APL) is the profit-stock that keeps on giving. Please refer to our previous posts to view the number of times this stock has produced a solid profit-taking opportunity for our readers. Most recently, in February of this year, I recommended that partial profits be taken on APL above the $13 per share level. Soon after and as correctly predicted once again, the stock retreated to an interim low of $8.35 on 25 May. If you’ve been paying attention and reloaded on APL below the $9 per share level, you now have yet another opportunity to take substantial gains off the table above $13. As long as the APL share-price pattern continues to move in a predictable manner, you should be able to keep making money on this stock. |
| Current Opinion: Take partial APL profits at current price range; stay vigilant for next buying opportunity at lower levels |
| Alamo Energy (ALME) |
| Alamo Energy (ALME) may be onto something big at its Valentine oil and gas project in Ritchie County, West Virginia. The company reports that the Valentine #1 well is flowing at an initial rate of approximately 100,000 cubic feet of natural gas per day and 44 barrels of oil per day. Although these are not earth shattering numbers, they are respectable – and the potential for rapid expansion could mean a major jump in yearly revenues for the company. Based on initial flow-rates, the Valentine #1 well translates to approximately $1.2 million in oil-revenues per year and $170,000 in natural gas revenues per year for Alamo. The company has not yet released what the expected well-spacing will be, but if we estimate 100 similar wells for the project, those figures could multiply 100-fold to $120 million in oil-revenues per year and $17 million in natural gas revenues per year. This gives us added confidence in owning ALME shares at current price levels. Now, we just have to monitor Alamo’s progress on its Valentine project, and its other current projects in Texas, Kentucky, and the United Kingdom. We are anticipating a steady rise in share-value over the coming quarters and drilling activity heats up. |
| Current Opinion: Initial Profit-Zone opportunity as high as 175% at $2.50 per share in April; ALME remains a Strong-Buy at current price-range |
|
