DISCLAIMER: StreetAuthority, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our web site(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing StreetAuthority materials and websites, you agree to our Terms and Conditions of Use, including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.
The Next Eagle Ford Shale?
Investors in the Eagle Ford Shale raked in 823% gains
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So as you can see, people find having a little guidance in this crazy market to be worthwhile.
Now, before I reveal what I've discovered about the "Drexel Reserve" and how to access the complete write-up on it for free, let's look at why the shale market is going to keep churning out profits for investors...
Shale plays are just getting started
In just a minute, I'll show you charts and graphs proving how forward-thinking speculators have been investing their money in shale stocks -- and profiting from them -- since at least 2002.
After 11 years, you might assume the rush is just about over and all the big money has already been made.
But the oil shale market is just picking up steam, and there are two reasons for this. First, according to Bloomberg, we're going to keep using more and more oil:
"The world is straining to feed its energy habit. Today,we consume 85 million barrels of oil a day, according to the U.S. Energy Information Administration (EIA). By 2030, the world will devour 118 million barrels a day, as China and India emerge as economic superpowers."
Oil is going to be made at record levels, and we're going to keep consuming it. The market isn't just ready for oil shales to produce more oil -- the market is demanding it.
But the United States already has oil coming from traditional wells like our massive reservoirs in Alaska, right? Why would we need to pull from shales?
Because traditional oil reservoirs, like Prudhoe Bay in Alaska, are declining. Production slowed 7.3 percent three years ago, and fell 6.7 perfect two years ago.
International sources would be useful, if we could get our hands on it. But 70% of the world's remaining reserves are controlled by foreign state-owned oil companies and thus off-limits to us.
Essentially, shale oil is the last frontier for energy exploration.
Consulting firm Woods Mackenzie confirms the increasing production of oil shales with their own research, estimating that U.S. shale formations are expected to yield 4.2 million barrels of oil per day by 2020 -- which is up from 1.6 million now, or more than double the current rate of production.
That 4.2 million barrels of oil would account for 43% of today's current U.S. oil output -- though, of course, that number will continue to climb.
In short, if you want to capitalize on the world's ever-growing appetite for oil, you need to invest in a source that is going to feed that demand. That's exactly what we're going to do, and the profit potential behind this investment are astonishing.
The "Drexel Reserve" has the infrastructure in place, and the early drilling tests and seismic studies confirm the high levels of oil it will provide.
The "mainstream" drillers are learning more and more about this reserve every day. I expect them to swarm the area and start buying up acres of land within months.
And when that happens... prices go through the roof.
Not even the biggest shale play in the last 10 years...
Before we get into details about the "Drexel Reserve", let's take a quick look at a few examples of how explosive these kinds of plays can be...
- Continental Resources (CLR) traded at just $13.54 a share at the end of 2008, but after investing in the Bakken Shale, their stock rose as high as $94.75 - a 699% increase in just 38 months.
- Devon Energy (DVN) got an early start on the Barnett Shale back in 2002, well before others were looking. At the start of that year, their stock traded at $16.96. Just a few years later, it was worth $121.38 -- an increase of 716% in 77 months.
- At the end of 2008, Chesapeake Energy's (CHK) stock was worth $11.32. Then, they stormed the Marcellus Shale in 2009, buying as much land as they could. At the beginning of 2011, their stock had jumped to $35.37 -- a rise of 312% in just 26 months.
- And finally, in 2009 Cimarex Energy (XEC) bought up the Woodford Shale to start drilling while at a $15.92 stock price. Investors rejoiced in 2011 when the stock rocketed up to $117.12 -- a stunning 736% gain in just 25 months.
To further understand the blossoming potential, look no further than Chesapeake Energy (CHK). The Marcellus Shale was not their only big winner.
Over the past couple of years, the company has quietly acquired 1.25 million acres in the Utica region (mostly in Ohio, where environmental and regulatory climates are relatively friendly).
Chesapeake was one of the first to realize the immense potential locked up in tight shale formations. In fact, it single-handedly discovered several of the nation's most promising plays, and invested aggressively during the land grab of 2006 to 2009 -- scooping up millions of acres when royalties and leasing bonuses were still relatively cheap.
CEO Aubrey McClendon has a track record of beating his rivals to the punch -- and he may have done it again. After reviewing well logs, core samples and reams of petrophysical data, the firm's experts have concluded that Chesapeake's Utica real estate is worth $20 billion -- or $16,000 per acre.
Incidentally, the entire 1.25 million acre position cost less than one-tenth of that, just $1.2 billion.
Some scoffed at the $16,000 per acre figure. But the appraisal turned out to be spot-on -- one year later, Chesapeake sold 142,000 Utica acres to an eager buyer for $2.14 billion, or $15,000 per acre.
This one sale recouped the firmís entire investment, netted a 9-figure profit and left the bulk of its acreage intact.
I believe the "Drexel Reserve" could produce profits like these as well.
And the money is flowing so freely in the oil shale market that some people are just stumbling into fortunes.
The humble farmer who became
a millionaire overnight -- by accident
John Walker never intended to cash in on any oil reserves. He didn't even know about them.
Since the age of six, John lived in the small town of Anthony, Kansas. At 63 years old, his modest life had not provided for his retirement, so he simply intended to continue harvesting wheat for as long as he was physically able.
But John didn't realize the value of the land he was sitting on.
One year, his land was worth about $25 an acre. Then, it was discovered that his land was directly on top of a valuable oil shale.
The next year, a drilling company paid him $1.5 million for 2,000 acres of his land.
Not only did he receive a life-altering paycheck -- he will also receive 20% royalties on any oil that is produced on that land.
Overnight, he went from just scraping by to doing things he had only dreamed about. He upgraded his farming equipment: two new tractors, a new baler, a swather, two new pickup trucks.
He bought a luxury motor home so that he and his wife can finally take vacations together.
John told CNN that he has to pinch himself every morning because they hit the jackpot.
Think he's a unique case? He's not.
A 64-year old farmer named Jack Gates leased out 160 acres for $160,000. Randy Blanchat also leased his land for over $1,000 an acre. His brother, Jeff, made the same rate on his land.
That's how quickly money can pour into a piece of land that has an oil shale beneath its surface.
As the old saying goes, "Follow the money." I followed the money, and it led me right to oil shales.
All signs point to this next big shale...
I've code named my find the "Drexel Reserve" in honor of J.P. Morgan's mentor Anthony Drexel.
You see, Drexel was a mentor to young Morgan. Because Drexel's guidance was so important to his success, J.P. made him a senior partner in many of his business dealings -- including Morgan's success in investing in iron ore reserves -- which brought Drexel his own fortune of $15 million.
Today, that fortune would be worth almost $377.5 million.
Anthony Drexel was the closest advisor to one of the richest men in American history.
I am here to offer you the same guidance as you grow your own fortune -- and you won't have to make me a "senior partner" or shell out $377.5 million either.
Now, you're probably not going to make billions of dollars like J.P. Morgan did, but the returns can be staggering.
The "Drexel Reserve" has all the pieces in place to be the biggest shale play yet.
Recent estimates indicate there are billions of barrels of oil underneath the "Drexel Reserve's" surface.
That oil is like buried treasure to oil producers, and they're going to pay top dollar for that land.
But other than the resources in the ground, consideration of a shale also depends on a number of other factors -- all of which play in favor of the "Drexel Reserve":
Pressure of the reservoir
the "Drexel Reserve" is over-pressurized, which will help bring hydrocarbons to the surface (making crude oil production both easier and cheaper)
Current cost of the land
most land in the "Drexel Reserve" is still around $200 per acre (so the price has plenty of room to grow)
Local government and economy
Louisiana's economy depends on oil, so the state is friendly to oil producers (which means they'll stay out of the drillers' way and not charge them high taxes per barrel like California or Texas)
once the oil is out, it is a short trip to the St. James terminal on the Gulf Coast (so shipping the oil will cost much less for the drilling company)
This infrastructure makes the "Drexel Reserve" a hotbed of potential and an attractive option for drillers.
Initial drilling results on the "Drexel Reserve" confirmed the vast deposits of oil underneath the Earth's surface. The first wells are producing oil at a rate of 1,250 barrels of oil equivalent per day, and that is with a very limited amount of drilling.
What do those testing results mean to a company? Or to an investor?
Let's look at one example:
Devon Energy (DVN) has amassed tens of thousands of acres in the "Drexel Reserve". After extensive study and drilling tests, company experts now say the estimated ultimate recovery (EUR) will be 400,000 to 600,000 barrels per well.
Believe it or not, that estimate might be on the conservative side.
Just down the road, Encana (NYSE: ECA) recently tested a new well in Amite County, Miss., with peak initial flow rates of 1,000 barrels per day. That rate was sustained for nearly a month, and cumulative production surpassed 85,000 barrels in the first 140 days of production. The company is targeting an EUR of 730,000 barrels.
That production would be worth $63.5 million at today's prices -- from a single well.
So when drilling tests confirm healthy oil production like the test results found in the "Drexel Reserve", those results are music to the ears of big drillers who need that land. So they are going to try to outrun each other to buy up that land from its current owners.
When the rush is on, the investors who will cash in will be the early movers -- who bought land now while prices are low.
You've already seen exactly what kind of impact timing has on the stock price of an early buyer -- we've seen stocks rise for more than 800% gains because of production like this.
But the only way to succeed when playing shales is to find the right company to invest in: the company that is buying a considerable amount of land, and one that can translate that land into substantial profits.
One drilling company has all the pieces in place, and I'm betting on them to make the most profits from the "Drexel Reserve."
To me, one pick stands out from the rest...
There are several well-established companies that are buying up land in the "Drexel Reserve." But I'm keeping a close eye on one company in particular, and here's why:
- Experience -- This company is not new to oil shales: a few years ago, they bought a large chunk of land in the Haynesville Shale of Louisiana for only $200 per acre. Later, they sold that land for about 87 times what they invested, at $17,500 an acre. They know how to find the right shales and capitalize on their value.
- Land -- Once they heard about the "Drexel Reserve", they aggressively went after the land at only $245 an acre. Today they control 134,000 acres of land in the "Drexel Reserve."
- Current stock price -- As you saw in the bigger shale plays, 300% gains are very possible, even at the low end of the spectrum. So if you buy 1,000 shares of the right stock at just over $12 a share and the stock jumps 300%, your investment would be worth $48,000. Any way you look at it, the stock is a steal compared to the profit potential.
Which company staked their claims to the "Drexel Reserve?"
As I promised earlier, that's exactly the report I'd like to send you, for free...
Your complete guide to finding the best shale plays
In my newest report, "Profiting from the 'Drexel Reserve': 3 Shale Plays to Cash in on the New Gold Rush", I give you all the details on which company this is and why I'm buying it now while the price is still low.
But that's not all -- in "Profiting from the 'Drexel Reserve': 3 Shale Plays to Cash in on the New Gold Rush", I'll also show you:
- How to find shale plays with triple-digit potential
- Two other shale picks that are bringing in strong returns for investors
- How the shale market is going to develop and grow over the next 5-10 years
This report is packed with valuable information that will guide you through every aspect of investing in shales.
And here's the best part -- and the "catch" I mentioned earlier: subscribe today, and I'll give this report to you for free when you give my research service, Junior Resource Advisor, a 60-day, no-risk trial.
But as you'll see, it's really no catch at all because you keep the report even if you decide my Junior Resource Advisor service isn't right for you.
So what can Junior Resource Advisor do for you?
Find triple-digit gains from small resource companies
My publication, Junior Resource Advisor, shows you how to build profits from small resource companies that could be tomorrow's giants.
The reason I focus on smaller companies is because of the tremendous upside they present versus large corporations.
For example, if ExxonMobil invests in a shale, their profits might just be a little blip on their radar.
With a market cap of $403.15 billion, ExxonMobil just doesn't see a lot of gain on a few hundred million dollars' worth of profit. Besides, oil shales are only going to be one part of their business.
But as we've already seen, when a company with a smaller market cap, like $469.10 million, invests in an oil shale, the profits that they generate could have a triple-digit impact on their stock.
Because they're smaller, their success impacts both stock price and their overall company's worth to a much higher degree.
And there's a very good reason why I spend so much time researching these companies and sharing them with you in Junior Resource Advisor.
I don't just tell you what to invest in...
...I invest right alongside you.
Too many investment advisors today tell their subscribers to invest in one thing while they make bigger returns with their own plays. Not me.
I invest every pick in the Junior Resource Advisor in a live, real-money portfolio.
Just taking a quick glance at this portfolio, here are some of the returns I'm seeing as of this writing:
- McMoRan Exploration (NYSE:MMR): +40.0% since 10/31/12
- Patterson-UTI Energy (Nasdaq:PTEN): +31.0% since 3/20/12
- Stillwater Mining (NYSE: SWC): +30.8% since 5/1/12
- Gulfport Energy (Nasdaq: GPOR): +24.8% since 12/5/11
- Kaiser Aluminum (Nasdaq: KALU): +22.3% since 7/16/12
And it's not just me -- readers send in their success stories regularly, sharing their excitement over how my research is paying off for them too:
"You have earned my loyalty because I have benefited MANY times following your advice...I am up at least 40-50% over the past 3 years... [these stocks] and others have done very well for me." -- David P., Eden Prairie, Minnesota
"Today I have placed a sell all at market's close for just over 100% gain... Even in this rough volatile economic climate, StreetAuthority's advice has made me a more successful investor. Thanks for the good work." -- Mark W., Mount Vernon, Texas
"As a financial editor, I've been covering hundreds of investment newsletters for 25 years. The StreetAuthority family of services offers an unparalleled combination of high quality, in-depth research along with editorial integrity, consistently fascinating articles, top-notch education and a long-standing record for outperformance." -- Steven Halpern, Editor, TheStockAdvisors
When you subscribe to Junior Resource Advisor today, you'll get a free copy of "Profiting from the 'Drexel Reserve': 3 Shale Plays to Cash in on the New Gold Rush" as a "thank you" gift just for giving the service a no-risk 60-day trial run.
And if you don't like the profit producing plays I recommend, you're free to walk away and keep the free report.
Remember: these shales have huge upside potential. Just imagine if you had bought 1,000 shares of any of those other shale plays when the companies started drilling.
So what's a service like this worth?
Well, let's look at what investing just 500 shares would have been worth if you bought into the types of stocks I've been telling you about today cashed out at the peaks of these stocks:
Eagle Ford Shale = from $6,345 to $52,190
Bakken Shale = from $6,770 to $47,375
Barnett Shale = from $8,480 to $60,690
Marcellus Shale = from $5,660 to $17,685
Woodford Shale = from $7,960 to $58,560
Of course, if those gains aren't enough for you, you could've simply doubled your investment and seen profits ranging from $24,050 to $104,420.
Now imagine investing in just one or two plays like this each year and you'll begin to see the potential of these kinds of small resource stocks to build wealth.
Aren't you beginning to see how any service recommending these types of small resource stocks is worth at least $10,000? After all, plays like these could be putting many times that amount in your pocket.
Now, consider, the "Drexel Reserve" is already outperforming the Eagle Ford Shale 2-to-1 and the value of Junior Resource Advisor climbs even higher.
But you won't pay $10,000 today. You won't even pay half that...
Monthly guidance to help you find the best of the best opportunities in the small resource sector, plus everything you need to know about the "Drexel Reserve" -- including our picks with a profit potential of $36,000 or more -- is yours for a reasonable cover price of just $1,297 per year.
I'll show you how to take advantage of a huge discount off that cover price, but first, I want to show you another piece of research I've been working on...
The 3 Best Mining Picks for Your Portfolio
Junior Resource Advisor is not just an oil publication. We cover small resource companies across the mining and energy industries.
My latest research has uncovered 3 mining companies that are poised for major growth -- and profits -- this year.
Stock #1 is a silver and gold mining company that released promising numbers recently, instantly placing it at the top of my list:
- The net income growth of the past quarter rose 230.4% from the same quarter one year ago -- from $11.36 million to $37.55 million.
- Earnings per share is expected to rise to $2.13 from $0.54 in the coming year.
- It is one of the most successfully managed companies in the industry today, holding a debt-to-equity ratio of only 0.03.
- The P/E ratio is 78.4 -- more than 4 times the S&P 500.
I reveal this mining company in my special report, "The 3 Best Mining Picks for Your Portfolio." And that's not all:
- Stock #2 is trading below its book value and yet holds $385 million in cash. In the second half of 2013, they are opening a gold and copper mine in the second largest gold reserve in Canada. This company is also mining molybdenum, which continues to grow in demand. Once their new mine opens, the sky is the limit for their stock.
- Stock #3 is a quieter mining company with very promising growth projections. Between now and 2015, copper production is expected to increase 390%, along with a 115% increase in precious metals and a 30% increase in zinc. These are hefty growth figures, but with $1.4 billion in cash, the company has great downside protection.
Because these companies are so small, I can't reveal them here. But in "The 3 Best Mining Picks for Your Portfolio", I'll give you everything you need to know and why I am picking these companies right now to hold throughout 2013.
I don't want you wasting any more time before you pick up these stocks, so if you...
I'll knock an extra $700 off
your first year's subscription
J.P. Morgan paid his closest advisor $377.5 million in today's dollars.
A hedge fund would cost you $20,000 on a $100,000 investment -- plus 20% of any money you actually make on the investment.
A personal investment advisor can cost you upwards of $10,000 -- and possibly more depending on how much money you have and the fees and commissions they charge.
And these inflated prices don't include any of the bonuses I'm talking about here.
But I'm not interested in squeezing money out of you. I want you to start buying these small resource companies and profiting from their growth right away.
So I won't charge you $377.5 million... or $20,000... or $10,000... or even $5,000...
Get one full year of Junior Resource Advisor -- plus all these extra bonuses -- for only $597 a year!
Because this is likely to be a very fast moving opportunity, I don't want to let the price get in the way. You need to buy this stock now.
Therefore, I've asked my publisher to lower the first year subscription to just $597 -- an $700 discount.
So for just $597, you get instant access to:
- Side-by-side investing with me in every monthly edition of Junior Resource Advisor
- The full Junior Resource Advisor archives to arm yourself with all the knowledge you can get about small resource plays.
- My regularly-updated portfolio so that you know exactly how well my picks are performing.
- "Profiting from the 'Drexel Reserve': 3 Shale Plays to Cash in on the New Gold Rush" to guide you, step-by-step, through profitable investing with oil shales and the "Drexel Reserve."
- "The 3 Best Mining Picks for Your Portfolio" showing you the strongest mining plays of the coming year
- The additional $700 off "fast moving opportunity" discount
That's a one-year subscription for less than $1.50 a day!
For way less than the cost of a gallon of gas per day, you get one-year, unlimited access to everything Junior Resource Advisor has to offer.
This offer is only valid until the date of the next issue of Junior Resource Advisor so you need to act quickly -- once the next issue is released, the annual subscription price could go back up to $1,297.
Try Junior Resource Advisor Risk-Free for 60 Days
I don't want you to put your money at risk.
If you're not sure whether Junior Resource Advisor is right for you or not, try it out for 60 days. If you decide that you do not want to continue your subscription at any point within those first 60 days, you can cancel and receive a full refund, less a 10% processing fee.
How can you subscribe? Simply click the "Subscribe Now" button and you'll be taken to an order summary page. Fill in the information, hit the "Order Now" button, and in just minutes you'll receive an email with your welcome letter and how to access your free report and the Junior Resource Advisor archives and portfolio.
Simple as that.
I look forward to you joining me as I find today's small resource companies that have the potential to become tomorrow's giants.
The Eagle Ford Shale gained over 300% for investors. Four others had triple-digit gains. Those who got in early made big money.
The clues are already in front of you. By acting quickly, you too could cash in on this opportunity before it passes you by. Don't let it.
Click here to subscribe today and lock in your discounted price of $597 a year.
To Your Investment Success,
Chief Strategist, Junior Resource Advisor
P.S. This offer is only for a limited time -- if you wait too long to subscribe, you will not receive the free reports, and you will have to pay full price for an annual subscription ($1,297).
So if you want to take advantage of the $597 discounted rate, click here to subscribe today and get immediate access to all the great bonus materials at your discounted price.
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please call (toll free) 855-512-6698
DISCLAIMER: StreetAuthority, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our web site(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing StreetAuthority materials and websites, you agree to our Terms and Conditions of Use, available here, including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.
Figures shown in the preceding webcast represent returns for individual stocks only. All investments can be volatile, and all returns will be reduced by fees and expenses. Below are the returns for StreetAuthority's premium newsletters.
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