Alright guys and gals, I told you a few days ago we had a new Featured Stock to introduce you to. Well, today's the day.
We've been on something of a roll lately with our ideas. We tapped into an 18% move with Medallion Financial (TAXI), for instance, back on October 10th. We've also seen progress from Ladenberg Thalmann Financial (LTS) following our August 26th mention. The 15% gain between here and there isn't bad at all, considering the environment [the market's up about half that amount for the same time frame].
You know what though? Not that there's anything wrong with those established companies, but they just don't satisfy the craving for a true start-up, "ground floor" idea. I think a lot of you are like me in that you're on the hunt for something brand spanking new.... something not even out of the gate yet.
That's American Liberty Petroleum (OTC:OREO).
I'd be surprised if any of you have heard of it, because for all intents and purposes it wasn't an entity until a few months ago when it finalized the acquisition of two very compelling oil prospects. For that matter, it wasn't even a publicly-known entity until the end of last month when it notified the market - via a press release - that its website was up and running. Oh, the company was filing its paperwork with the SEC, but it wasn't really talking to the market until very recently.
Since then we've seen another press release - this one with the sole intention of explaining what the company intends to do, and what makes it unique.
If you've been around a while, then you probably know what this means: American Liberty Petroleum is finally starting to think about its stock and status, which tends to coincide with the beginning of physical corporate activity. In this case that would be drilling, or at least the preliminary aspects of it.
So, like all of our Featured Stocks, these hints of brewing interest are your clarion call to start exploring the stock while the company continues to explore for oil. Here are a few tidbits to get your due-diligence juices flowing:
- American Liberty Petroleum 's 7,270 acre Kibby Flat prospect in Nevada could be part of a field holding a recoverable 669 million barrels of oil, worth more than $70 billion at today's prices. Occidental Petroleum has already confirmed the likelihood of this-sized possibility by identifying a 1 billion barrel reserve in a part of California that's adjacent to Kibby Flat.
- The 2,557 acre Gabbs Valley prospect is part of a line that has an estimated reserves structure of 4+ billion barrels of oil, which could make it one of the largest oil sources ever found in the United States.
- Despite the limited exploration (about 1/100th of the exploration already done in California), Nevada had produced 51.1 million barrels of oil (mmbo) as of March 2010. That doesn't even scratch the surface of the potential though, according to many geological reports.
- While it's surprising, the fact that Nevada is such an untapped energy resource shouldn't be that surprising. The Grant Canyon Field in Nevada was the site of two of America's highest producing wells ever, each of which have produced in excess of 9 mmbo and are still producing. As of February 2010, the field had produced a total of 21.13 mmbo, despite the American Association of Petroleum Geologists (AAPG) setting its estimated ultimate recoverable oil reserves at only 13 mmbo back in 1987.
Folks, there's oil in Nevada, and OREO plans on pulling a bunch of it out of the ground.
If you want the whole scoop on American Liberty Petroleum (and then some), I first recommend you go here to get the SCN overview. Or, if you'd rather print the report, here's the PDF version.
If you've got an opinion or a thought on OREO, you can post it at the company's StockHQ page; I'd love to hear from anyone on or near the California/Nevada line that's familiar with the region's oil potential. Let's face it - the state's not really known for black gold. Ironically, Nevada's actually known for gold gold.
One last thing I'll add... the stock's not really trading yet. That's not a big deal for now, since we just want to show it to you as a Featured Stock worth keeping an eye on simply because it has the potential to become explosive. Like I said above though, now that news is flowing, we'll likely keep seeing it flow. Each time it does, the stock becomes a little more liquid.
If someone does want into a position right away, there is a market for it, but it's pretty thin with a relatively wide spread (which is discussed here in one of our penny stock "How To's"). You'll have to trickle in to avoid pushing it around, though in some ways that'll help create the very liquidity you're looking for.
That's it - a little pre-weekend reading for you. Put it on your watchlist because I've got a sneaking suspicion this one's going to get real busy, real fast.
I'll be monitoring it either way, but I can see this thing taking off with little to no warning.