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Alamo Energy to Exxon:
Realistic Acquisition Scenario
Based on Exxon’s properties surrounding Alamo,
we project a buy-out of ALME
Our U.S. Energy Policy calls for increased domestic oil production and is now heavily reflected in the operational decisions of major oil companies. The common practice of brokering oil sales from foreign suppliers to American consumers should be legislated out of existence within the next 6 years. It is crucial to the United States’ national security to return to the record highs set in 1970 for daily US-based oil production of 9.5 million barrels. Currently, this number stands at around 7.2 million barrels daily, and we believe this number will continue to increase as large oil companies continue to consolidate junior drillers through acquisition.
We expect the ongoing well-leak disaster in the Gulf of Mexico to alter strategies in this industry. Because of the mismanagement of a single deep-water well, majors could face either nationalization or liquidation in order to cover immense environmental repair costs. One way to mitigate such catastrophic risk is by Proximity Acquisitions of junior drillers who’ve already established both the economic feasibility and operational safety of their projects.
Our committee is projecting that Exxon-Mobil will consider a Proximity Acquisition of Alamo Energy centered around both companies’ recent expansion into West Virginia.
Your Wealth-Package Should Arrive to You by Courier
-- It Contains Your Advance Copy of our Alamo Energy Dossier
If Your Package Does Not Arrive by August 20 – Please Inform Us Immediately at info@ContrarianPress.com or Toll-free 877-300-6205 |
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| Alamo Energy (ALME) |
| Last month, we commented on Alamo Energy’s Valentine #1 well in West Virginia, which came in at an initial flow rate of approximately 100,000 cubic feet of natural gas per day and 44 barrels of oil per day. Building upon that success and upward momentum, Alamo Energy now reports that it is expanding its West Virginia operations via a well re-entry program with Allied Energy on the Dillon #1 well. Current plans for this re-entry well call for the targeting of several shallower zones that have been analyzed as potentially oil productive. Alamo states that it believes the cumulative production from the recompleted well could be as high as 20,000 barrels of oil. If successful, Alamo could springboard this first well with Allied into a relatively low-risk oil and gas project that could drive your ALME share-value significantly higher in the near-term. Alamo has already stated that, in addition to the Dillon #1 well, it has secured options to participate with Allied Energy in the re-entry of additional wells across 1,520 acres in West Virginia. The acreage contains 12 re-completion and 4 drill-down wells with the opportunity to drill new wells on 25-acre spacing. What excites us most about the pending expansion project with Allied is the potential for drilling new wells on this property. At 25-acre spacing, Alamo may soon be looking at a 60-well drilling program in West Virginia. This [drilling] is the type of excitement that drives junior exploration company shares higher. |
| Current Opinion: Initial Profit-Zone opportunity as high as 175% in April; ALME remains a Strong-Buy at current $1.20 range |
| Atlas Pipeline Partners (APL) |
| Atlas Pipeline (APL) shares recently climbed to a new 52-week high of $18.80 following an analyst upgrade from Barclays Capital. Keep in mind that the stock traded as low as $9.00 in July. Atlas announced on 28 July that it has entered into a definitive agreement to sell its Elk City natural gas gathering and processing facilities to Enbridge Energy for $682 million in cash. Barclay’s believes that, as a result of this major asset sale, Atlas Pipeline Partners has gained valuable flexibility on its balance sheet to develop its Marcellus Shale assets – and we agree. With the upgrade, the firm upped its price-target to $19 per share. Earlier in the month, Atlas reported strong quarterly results, increased pipeline capacity, and an improved outlook for 2011. And although the company’s shares are slightly off their 52-week high of $18.80 at the current $17 range, we are recommending that you utilize this current price-run to once again take partial gains off the table. As always with Atlas Pipeline Partners, stay vigilant for down-dips with which to pick up additional APL shares at lower prices. This stock continues to deliver solid Profit-Zone opportunities for those who are paying attention. |
| Current Opinion: Current upward price-move as high as 108%; Take partial gains now and standby for next buying opportunity |
| Grid Petroleum (GRPR) |
| Please re-read our July posting on Grid Petroleum, which details the heightened volatility one can expect with early-stage exploration stocks such as GRPR. We continue to rate Grid Petroleum as a Strong-Buy at current price levels below $1. SISM Research recently announced: Based on our long-term commodity price forecast of $75.00/bbl for oil and $4.00 for natural gas, we calculate Grid Petroleum’s ANW (Appraised Net Worth) to be $2.24/share based on Schlumberger’s P50 assessment of Grid’s SE Jonah Field assessment and an un-risked ANW to be between $2.78/share and $9.80/share. According to analyst Ernest C. Schlotter’s research note: Grid Petroleum Corporation is expected to implement the first phase of its work program in Wyoming within the next 60 days, with completion expected in November/December of 2010. If the first phase is successfully completed, the focus will move on through to the drilling and exploration orientated phase of the program, with the final phase consisting of five assessment sectors before development. We at Contrarian Press believe that this may be the very last opportunity to pick up additional GRPR shares below the $1 level. Grid Petroleum is moving quickly toward the first phase of its work program on its SE Jonah Prospect, Wyoming, which could hold up to 1.28 TCF (Trillion Cubic Feet) of gas as reported by petroleum services giant Schlumberger (NYSE: SLB). The next round of news could start GRPR on a steady upward course. |
| Current Opinion: Early Profit-Zone opportunity as high as 140%; GRPR remains a Strong-Buy at current $0.85 range |
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