‘Formula for success: Rise early, work hard, strike oil’
JP Getty, the world’s first billionaire
In 2008, this Aussie oilman sold his first ASX-listed company for $104 million…
Then, in 2011, Santos bought out his next venture for a staggering $924 million.
Seven years later, this wildcatter is close to landing a final, massive payday…and this time YOU can join him!
Today I’d like to tell you about an Aussie oil and gas explorer operating in the shallow waters of the Gulf of Mexico.
With a market cap of $284 million and a share price below 50 cents…it’s tiny.
But if recent history is anything to go by, it may not remain so for long.
Indeed, this company was a pure explorer right up until March 2018.
However, it’s now pumping oil and gas from its first two successful wells.
Which means that it’s officially joining the ranks of energy producers on the Australian Stock Exchange.
This is a big, big deal.
First, it’s happening at exactly the right time.
The price of oil has more than doubled in the last 18 months. And at US$65 a barrel, oil reserves in one of the most prolific hydrocarbon areas on the planet are becoming hugely valuable.
Indeed, this company has spent the last two years bringing its first lease into production.
What’s more, there’s a very good probability that it will find more oil.
On 22 March, the company announced it was the highest bidder on seven new leases in the area. Three of those are adjacent to the company’s proven discovery.
According to an independent auditor, the prospective resources in these three leases alone could amount to a further 28 million barrels.
At today’s prices, that’s $1.82 BILLION in below-ground resources.
More than six times its current market cap.
Of course, that’s not taking into account the costs of drilling and sucking it out…
But you don’t need me to tell you what happens to a share price when a company hits oil.
If this company can pull off a second strike — exceedingly possible as you’re about to see — you could have a cracking return on your hands.
But there’s a second reason I bring this to your attention today…
It’s taken over 10 years of work — and the inclusion of a crack team chaired by a venerated oil and gas veteran — for this opportunity to come to fruition.
Officially, the man I’m talking about is a geologist of 40 years.
But unofficially he’s a wildcatter in the truest sense of the word.
And he knows better than anyone that, in oil booms, big scores fall into the hands of knowledgeable investors who buy acreage at the right price.
That’s what the best wildcatters do their entire career. That’s why they always have more than one big payday in their past.
For example, two ASX-listed energy companies this wildcatter cofounded sold for major money.
One of them was a company called Sapex Ltd.
It held seven petroleum exploration licences in South Australia, including two containing 1.69 billion tonnes of coal.
It didn’t take long for suitors to come knocking.
In 2008, it merged with Linc Energy, and was valued at $104 million at the time of the deal.
See the skyrocketing share price at the time…
You may know that many of the world’s biggest and oldest oil fields have already peaked or are nearing peak production.
This could prove to be a major problem sooner rather than later because spending on conventional oil exploration and production has collapsed over the last three years.
Oil crashed to as low as US$26 a barrel in 2016, from over US$100 in 2014.
The consequence was predictable: Energy firms slashed exploration to save money and survive the downturn.
This exacerbates the fact that discoveries of conventional oil have collapsed over the last 20 years.
One firm estimates that the world has consumed 250 BILLION more barrels of oil than were replaced between 2007 and 2017.
What’s kept oil prices low — for now — is American shale oil, otherwise known as ‘unconventional’ oil (due to the way it’s extracted).
But note this from Bloomberg in December last year…
‘Three years after causing an oil-price crash, the shale boom may not be enough to meet rising global demand because the industry has cut back so sharply on higher-risk mega-projects.
‘Discoveries of new reserves this year were the fewest on record and replaced just 11 percent of what was produced.’
In other words, the world has unwittingly made an ‘all in’ bet on US oil. If it goes into decline, there could be a major shortage of crude oil worldwide.
Right now — and in the coming months and years — the BIG money in oil will come from finds made in firms that discover more oil.
Even better, the recent recovery in oil prices is giving the major firms the cash to go looking for acquisitions again.
If you can get advance warning of a company that a) has found a sizeable and previously unknown oil deposit and b) has the rights to pump the oil…then you could stand to make a great deal of money.
And that’s exactly the opportunity in front of you today.
So, cards on the table…
It’s hard to estimate. Every oil find is different.
Take Blue Energy Ltd [ASX:BUL]…
In June 2017, Queensland regional paper The Gladstone Observer reported on a deal between Blue Energy and leading energy infrastructure company APA Group to build a pipeline connecting the rich Bowen Gas basin to the southern market.
BUL shares rose 280% over the following four months.
Or take Buru Energy Ltd [ASX:BRU]…
Around the same time, this Western Australian explorer announced it had re-commenced oil production ‘on time and under budget with no incidents.’
Shares steadily rose 20% within the month…and 111% by January this year.
Or take Aussie oil explorer FAR Ltd [ASX:FAR] for example…
In 2014 this little firm was prospecting for oil off the coast of Senegal, in West Africa.
On 7 October it announced it had struck a ‘significant’ oil discovery…
A few months earlier, on 30 June, the stock closed at 3 cents.
By market close on that fateful day in October, it was over 14 cents.
That’s more than 350% in just over three months.
Now, of course, that’s an ‘outside-the-norm’ find...and an outsized gain for investors who got ahead of the rest on the developing story.
But it’s these kinds of stories that will characterise the energy landscape for the next 10 years and more.
And if you’re an investor with speculative capital that you’re willing to put on the line, they’re stories you’ll want to hear about.
Well, I’ve found one such story for you.
One that could easily outshine anything you may have heard about or profited from this millennium so far.
My name, by the way, is Callum Newman.
If you’re a follower of real estate and market cycles guru Phillip J Anderson, you may be familiar with my previous work.
I was Phil’s protégé for three years, eventually heading up the research team behind his flagship private newsletter, Cycles, Trends and Forecasts…and also Time Trader, Phil’s premium service.
Two years ago I began to step out of the shadows with my own financial podcast, The Newman Show, where I regularly discussed investing ideas and trends with big names in the investment world…
People like tech forecaster Gerald Celente, billionaire fund manager Jim Rogers, geopolitical analyst George Friedman, currency expert Jim Rickards, and millionaire analyst Porter Stansberry…plus Australians Steve Keen, Michael West and Catherine Cashmore. There are plenty more names on that list, too.
Talking to these prominent figures and learning from them was invaluable.
And it started getting me noticed too…
In May 2015, for example, I was asked to give an exclusive talk at a private trading and investment workshop on the Gold Coast.
But I would say my big break came in early 2016 when I co-launched a VIP daily stock profiling service called Money Morning Trader.
This was where I put my own stock ideas out there in real market time for everyone to see.
Again, if you’re familiar with my work, you’ll know that we identified and anticipated huge moves in certain stocks and sectors.
We were talking about billionaire Elon Musk’s ‘Gigafactory’.
It’s old news now. It wasn’t then.
His electric car company, Tesla, plans to use this area of 10 million square feet — the equivalent of 174 American football fields — for one thing:
To produce more lithium batteries than the entire world combined.
We saw an immediate opportunity in lithium stocks, and profiled no less than six of them for our readers in a special report.
Here they are, along with their peak gains in the months that followed:
Pilbara Minerals .......................172%
Altura Mining ............................386%
Galaxy Resources ....................383%
General Mining .........................255%
European Metals ......................268%
Four months later, on 8 April 2016, respected journalist Trevor Sykes wrote in the Australian Financial Review: ‘The hottest commodity of the year so far is lithium.’
Our readers didn’t need him to tell them.
In terms of weather or geography, they couldn’t be further apart…
The first was a project in the Australian desert, east of Kalgoorlie.
The second is in the northern reaches of Scandinavia.
And the ‘link’?
A newly-formed mining exploration company called S2 Resources Ltd.
It was started by the same man who led his previous firm to a $1.8 billion takeover.
I liked what I saw.
As I wrote at the time:
‘Should very positive news arrive, S2R may be prone to a significant spike, such is the nature of its shareholders currently.’
It did spike. Massively.
Take a look:
But they don’t come much bigger than this…
I mentioned Telsa’s Gigafactory a moment ago.
Well, lithium was not the only thing to soar on the back of it.
So did a little-known computer chip company called NVIDIA Corporation.
These guys were (and still are) supplying the gear that powers Tesla’s autopilot system.
It’s a contender for the biggest stock move of the past 10 years.
Take a look at this chart — it’s near vertical:
Of course, we didn’t get everything right.
And I don’t get everything right even today.
But for the vast majority of trends, themes and sectors, we absolutely got it right.
My point here is this…
I don’t look to simply ‘outperform the general market’. That’s just industry bullshit fund managers spout to justify lousy performance.
I believe the best way to grow wealth is to find and back the stocks that could go up hundreds of percent.
And I’ve come to learn that your best shot at doing this is if you focus on two things:
And then you match those companies with…
All we need to do then is get on board for the ride.
And this is exactly what I try and do for the readers of my own new investment advisory letter, Small Cap Alpha.
Oil is one such trend for 2018.
And in my March issue of Small Cap Alpha, I detail the best stock idea to play it.
Today I’m offering you a no-obligation deal to come onboard and take a look at the full details.
Click on that link and you’ll go through to a secure order form page where you can take advantage of the small $49 fee for the first year of my research.
That’s an amazing 50% discount off the full price, by the way.
What’s more, you’re covered by our watertight satisfaction guarantee.
If you don’t like what you see, for any reason, let me know within 30 days and you’ll receive a full refund of the already heavily discounted subscription price. No questions asked.
If you decide to take this offer up today, here’s what you’ll discover…
Make no mistake…this is a tiny oil stock. So, naturally, the risks are high.
Higher potential rewards always mean higher risks.
That’s why I run through all the risks in clear and succinct detail before I offer my formal buying instructions.
Is it worth the risk of investing in this tiny small-cap oil stock?
If you have some capital to spare, I believe so.
And I’d love to show you why.
Just don’t hang around too long if you’re interested.
Right now, this Aussie firm’s existing leases in the Gulf of Mexico are being analysed.
But you should know that there’s a potential number of oil barrels that’s TEN TIMES what this company can claim as a reserve base now.
They’re very close to securing seven more leases, too, taking their prospective acreage even higher.
Three of these are in the direct vicinity of the proven resource they’re about to start extracting for sale.
For a small explorer that you can still buy for less than 50 cents, I believe it’s one of the best kept secrets in the energy sector.
To access the full story, start your no-obligation trial now.
And I look forward to welcoming you onboard.
Editor, Small Cap Alpha
PS: I’ve only outlined my LATEST opportunity in the letter above.
But don’t for one moment think that’s it.
Truth is, there are so many incredible opportunities in the market right now to tell you about.
The strap line of my advisory is ‘Ahead of the markets, in front of the news’.
There’s a reason for that.
I bridge the (mis-)information gap between market insiders and the man on the street.
By subscribing today, you’ll join a small and elite group of Australians that get instant access to my very best work…
Not only that, but I’ve prepared a special ‘Welcome Package’ that could shave years off your retirement date if these small-cap stocks reach their real potential.
As you’ll see, I’ve spent the last 11 years learning to identify what separates a bad company from a good one — and then differentiating a good company from a potentially life-changing investment.
I’ll expand on these points over the next 30 days if you decide to come on board but, in short, the stocks I recommend tend to contain five key ‘Alpha Criteria’…
For example, take No. 5. This is where I look for companies with an urgent catalyst that could move their shares.
I call this catalyst the ‘catapult moment’.
For instance, when a company comes out and says it’s actually going to make even more money than it previously thought, investors tend to pile in and buy up the stock to get at those extra profits.
In fact, this happened earlier last year with a small mining stock called Cradle Resources Ltd [ASX:CXX]. I profiled it in February 2017.
A month later, on 10 March, it got an unexpected takeover offer.
Look what happened…
The shares rocketed 39% within minutes.
This is why I love small caps!
But that’s nothing. Check this out…
One of the craziest — in fact, totally insane — catapults I have ever seen happened a week later.
It was from a company called Stemcell United Ltd [ASX:SCU].
On 14 March 2017, SCU announced a strategic adviser was joining the company to help it target the medicinal marijuana market.
In the space of 24 hours, the stock shot from 0.013 cents to 50 cents.
That was a rise of 3,746%.
At the same time the following day, it was up to $1.08.
Take a look:
At one point it was showing 8,246% gains!
My point is…
These sorts of announcements are part of what we’ll be hunting for at Small Cap Alpha.
By their nature, they’re difficult to predict.
But you CAN pull the odds in your favour with good research.
And I explain how in a second special subscriber-only report, The 25 Cent ‘Catapult’ That Could Take Everyone by Surprise (Except You).
As you can probably guess from the title, it also reveals my number one catapult target on the ASX right now.
Like the oil stock above, it’s a mining explorer.
And again, I won’t sugar-coat this one. It’s risky.
But I explain the risks in detail in this report. It contains everything you need to know.
If you’re happy to accept the risk, I believe the potential upside from this stock making a bullish announcement is absolutely huge.
You‘ll have to read the report for those details!
Just like the Return of the Wildcatter report, this opportunity is yours if you become a trial-run member of my newsletter, Small Cap Alpha.
I can’t wait for you to get started!
(You can review your order before it is final)