[529] in Locker Maintainers
Hot Shot Stock Info
daemon@ATHENA.MIT.EDU (High Octane Stocks)
Sun Oct 3 19:02:08 2004
Message-ID: <69675z6zd535$g754i418p3$629y076gqp8@E29129472>
From: "High Octane Stocks" <rgswmq@northstate.net>
To: <Dlnelson@MIT.EDU>
Date: Mon, 04 Oct 2004 04:54:23 +0500
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Oil & Gas Small Cap Review
oil and gas winners up 2001 percent this year.
We expect earthshaking news on this one this week.
Short term Target Much higher. TAKEOVER TARGET
Featured Company: Tradestar Corporation (TIRR) Increasing domestic
consumption and uncertainty over foreign oil supplies has driven oil
prices to nearly $50 a barrel, and created a boom opportunity for
domestic oil exploration and production. With rapidly expanding
interest in domestic production opportunities, US oil & gas stocks
have seen huge and sustained price gains. We have seen a number of
domestic small and madcap oil plays, such as ABP, BEXP, CRZO, NFX,
and THX, witness average 2-year price appreciations of 115=
%!!! A
little known Arkansas-based company, Tradestar Corporation,
represents one of the most promising new entrants into domestic oil
exploration and production, and is the most unique breakthrough
investment opportunity we have seen recently. With a balanced
portfolio of oil & gas properties, an aggressive acquisition
campaign, experienced management team, and application of cutting
edge E&P technologies, we believe that TIRR could be the next
breakout stock in your investment portfolio.
Tradestar Corporation (TIRR)
Current Price: $0.75
Short Term Outlook: Explosive Growth
Est. Shares Out: 34.1 Million
Approx. Float: 1.5 Million
Market Capitalization: $25.6 Million
Industry P/E: 16x
Industry Average 52 Week Price Change: +472%
With oil and natural gas prices sitting near 10-year highs, North
American oil & gas companies are generating exceptionally strong
financial results. With increased consumption and reliance on
foreign imports driving the price of crude to nearly $50 per barrel,
the resulting US energy situation is the most serous domestic energy
crisis since the Arab oil embargo of the 1970=92s. With more than 57=
%
of US oil coming from foreign imports, US crude inventories are
likely to remain at low levels given anemic production from
Venezuela and Nigeria, continuing uncertainty over Iraqi wells, and
production caps from OPEC. On the natural gas front, supply
continues to remain tight to increasing demand, with shrinking
relative US production. These international supply issues are
increasingly driving a renewed trend towards domestic exploration
and production operations, New developments in the petroleum
industry are beginning to play out in terms of discovery of new
reserves and more efficient production of existing reserves, with
the increased use of technologies such as 3-D seismic making new
exploration more affordable and effective, and with use of secondary
and tertiary recovery processes to recover the more than 60% of oil
left in-ground with primary production techniques.
Tradestar Corporation is a rapidly emerging independent oil and gas
company, engaged in the exploration, development, and exploitation
of on-shore oil and natural gas opportunities in proven producing
areas of the United States, including Oklahoma, Texas, and
Louisiana. The Company intends to utilize advanced oilfield
surveying and extraction technologies, such as 3-D seismic, lateral
drilling, and enhanced oil recovery, to identify, acquire, and
exploit bypassed and overlooked reserves which can be rapidly
exploited without significant risk and capital expenditure. The
Company is capitalizing on both of the major trends in domestic oil
and gas E&P operations, carefully screening and selecting properties
for maximum potential of overlooked and bypassed production
opportunities, and using advanced production technologies to
minimize risks. Under the guidance of a management team experienced
in oil and gas exploration and production, Tradestar has developed
critical strategic relationships with oil industry partners and is
beginning an aggressive acquisition strategy, targeting a number of
highly promising opportunities throughout the United States. With a
number of major projects in the acquisition pipeline, we believe
that TIRR presents a unique opportunity to invest in the domestic
oil & gas boom. Aggressive investors looking for above-average
return potential on a portion of their investment capital should
give TIRR serious consideration. Management of the Company, headed
by CEO Tom Feimster, are highly talented and experienced in the oil
& gas industry, and posses a wealth of technical expertise and
knowledge. We believe that TIRR has developed a viable and highly
promising acquisition strategy, backed by its commitment to the use
of new oilfield technologies and focus on exploiting proven
producing properties, which should enable the Company to rapidly
develop significant revenue streams. Investors at current trading
levels may be rewarded over the short term and beyond as TIRR=92s
business plan is executed. TIRR is one of the market=92s best kept
secrets, and we expect investors to give this issue increasing
attention over the coming months. A Few Reasons to Consider Adding
TIRR to Your Investment Portfolio The outlook for oil & gas stocks
is extremely positive with prices at historic levels and continued
demand stimulating additional exploration and production efforts
among domestic producers. While it seems unlikely that prices will
remain at their current levels, the long term outlook for both
demand and higher prices is unparalleled in recent history. With
current market conditions, domestic E&P companies are experiencing a
huge run-up in prices as they seek to exploit North America=92s
significant oil and natural gas resource base with new exploration
techniques and drilling technologies. Through its dual positioning
in high-growth oil and natural gas markets, we believe that TIRR is
exceptionally well situated to benefit from these favorable market
conditions and stands to see significant appreciation of its share
price over the near term period.
With its operations in the exploration and production of natural
gas properties, TIRR is ideally positioned at the forefront of a US
natural gas boom opportunity. As US demand for natural gas is
increasing, domestic production is becoming strained with many
long-term prime producing areas reaching the point of depletion. By
2020, US consumption of natural gas, driven by the expansion of
gas-fired electric generation facilities, is expected to reach 37
trillion cubic feet from approximately 23 Tcf currently. Natural
gas prices on the spot market have nearly doubled from less than 2
years ago, and are currently testing the $6 per million British
thermal units (Btu) price threshold, with increases to $8-9 levels
likely over the winter months. With US demand exceeding production
of roughly 18-19 Tcf per year, approximately 14% of US natural gas
needs are already being imported from Canada. With natural gas
impossible to transport across oceans (with the exception of LNG,
which represents a small fraction of overall natural gas
consumption), this has created a tremendous opportunity for domestic
E&P firms, including TIRR.
Tradestar is in the process of acquiring a balanced portfolio of
producing oil & gas properties onshore in the Gulf coast and
Oklahoma, which will significantly improve its asset base, revenue,
and earnings outlook over the near term period. TIRR has entered
into a letter of intent to acquire two properties in the heavily
producing Arkoma Basin region of Oklahoma, one of the most prolific
natural gas producing areas in North America with estimated reserves
of 30 Tcf. The Company has also proposed a JV project in the
dynamic Barnett Shale natural gas play in Central Texas, the largest
producing gas field in Texas with estimated reserves of more than 10
Tcf. TIRR has additionally acquired a 260 acre property in Karnes
County, Texas a mature producing area which can provide new
opportunities due to improvements in drilling technology and
production techniques. With these properties, and additional
planned acquisitions in the onshore Gulf Coast region, we believe
that Tradestar is admirably positioned as a breakthrough junior oil
& gas investment opportunity.
TIRR has developed an innovative business model centered on pursuit
of a balanced development and exploration strategy and portfolio,
and the use of advanced oilfield survey and recovery technologies,
which will significantly improve production efforts at acquired
properties. Tradestar seeks to acquire bypassed and overlooked
reserves in proven producing areas, and to develop working interests
in undercapitalized and under-producing projects. TIRR intends to
capitalize and maximize on already developed drilling and
exploration projects with lower cost initiatives that have a high
degree of success including infield drilling (drilling of multiple
wells onto an existing leasehold), development of behind-pipe
reserves (development of shallower =93pay=94 zones above the deepest
productive zone on established wells), secondary and EOR recovery
techniques, lateral drilling, and the use of other advanced
completion and production techniques. Tradestar also intends to
aggressively pursue acquisition opportunities for higher-risk,
higher reward E&P prospects, utilizing advanced data analysis to
reprocess older 2-D seismic data with 3-D seismic and correlating
this seismic, gravity, geochemical and geologic data with existing
well logs to significantly mitigate the expense and risk
traditionally associated with new E&P projects.
Future looking statements are based on expectations, estimates and
projections at the time the statements are made that involve a
number of risks and uncertainties which could cause actual results
or events to differ materially from those presently anticipated.
Future looking statements in this action may be identified through
the use of words such as: "projects", "foresee", "expects",
"estimates," "believes," "understands" "will", "anticipates," or
that by statements indicating certain actions "may," "could," or
"might" occur. All information provided within this email pertaining
to investing, stocks, securities must be understood as information
provided and not investment advice. Emerging Equity Alert advises
all readers and subscribers to seek advice from a registered
professional securities representative before deciding to trade in
stocks featured within this email. None of the material within this
report shall be construed as any kind of investment advice. We have
been paid 20,000 dollars for this mailing from a third party.
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