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VOLUME
03: ISSUE 60
Assure
Energy (OTC BB: ASUR) - Sneaking Into the Land of Titans
Last weekend we rolled out our first
of what will undoubtedly be many editions on Assure Energy. We expect
the company to dish up a number of positive developments in the coming
months as they begin reporting results from their Fall drilling program
throughout Western Canada.
You might have missed our report
because there were problems on the Internet last weekend. If you didn't
have a chance to review the information on Assure Energy, we strongly
recommend you do so immediately. If you made money from any of our profitable
ideas this year which include Lucent, Liberty Media, Apple, Cel-Sci
(up 265%), ATI, White Electronics, and many others, you will definitely
want to learn about Assure Energy. Simply click
here and you will be taken to our original publication on Assure.
We believe Assure represents
an outstanding investment opportunity in the oil & gas sector for several
reasons. In conjunction with the recently announced acquisition of nearly
half of Quarry Energy, Assure is now generating about $1.5
(Cdn) in monthly revenues from producing oil & gas properties
in Western Canada. Assuming commodity prices remain about the same, this
cash flow will continue for the next ten years or more from existing reserves.
These revenues help mitigate the risk associated with owning the stock.
The upside potential is far more
exciting. Assure's fall drilling program offers significant potential
appreciation in the stock. While new discoveries might be insignificant
for behemoths like Anadarko Petroleum (NYSE: APC), the same finds
can send shares of companies like Assure Energy spiraling north,
which happens to be the same direction the Bush Administration would like
to find flows of much needed natural gas to meet the anticipated major
shortages.
Here's one example of a potentially
explosive property included in the Fall drilling program.
Doe
East Prospect
One of the properties included in
Assure
Energy's Fall drilling program is the Doe East prospect in Western
Alberta. This property is located right in the land of the giants- massive
finds dating back to the 1950's are a stone's throw away from Doe East.
A mere 20 kilometers to the west
is an area known as the "Parklands". The Parklands Wabamun 'A' pool was
discovered in 1956 and estimated to contain 225 Billion Cubic Feet (yes
folks, that's Billion with a capital "B") of natural gas. To date,
the Parkland discovery well has produced 109 Billion CF of gas,
and continues to produce to this day.
Just 50 kilometers to the south resides
Saddle
Hills (as shown on the map), which is being developed by
Anadarko
Petroleum (NYSE: APC). Anadarko recently updated its estimates on the
reserves in Saddle Hills. The company now believes the property
could have reserves up to 130 billion cubic feet- updated from the
previous estimate of 90 billion cubic feet.
According to a recent Reuter's report,
Anadarko
is investing $68 million in development of the Saddle Hills
prospect. Doe East is located right in the middle of all these massive
finds. A discovery of any major magnitude would have far greater implications
for stock price appreciation in Assure Energy vs the billion dollar
behemoths.
Investors
Are Starting to Catch On
Seasoned oil & gas investors
know the best time to jump into junior production and exploration companies
is just prior to major drilling programs. Investors perceive significant
upside, particularly when small companies explore in proximity to the major
titans. Assure Energy is at that stage right now.
A quick look at the chart reveals
that investors are starting to catch on. Assure traded at about
$3 for nearly a year. During the month of September the stock made a quantum
surge in both price and volume in conjunction with announcing a Fall Drilling
program and the first part of the Quarry acquisition.
In the September
19th edition of the Globe and Mail, columnist Deborah Yedlin points
out "In the boom and bust cycle of the oil patch, it may be time to
start thinking boom again." She notes there was $130 million raised
by junior oil & gas companies in September alone. Perhaps this helps
explain why shares of Assure Energy recently popped up on the radar
screens of investors. Price and volume are surging.
The company has a beautiful overview
of its properties on the corporate web site, which can be found at www.assure-energy.com.
The operations section presents all their properties. Go to the Property
Explorer in the Operations section, or simply click
here, and you will go directly to the proper place.
We intend to share developments as
they unfold. No one can say where the stock will end up. However, junior
oil & gas companies tend to trade well ahead of drilling programs.
With the right find, the upside is unlimited from current levels. One thing
is certain- we're a lot closer to the beginning than the end. You should
consider establishing a position in Assure Energy immediately with
an eye towards further appreciation over the remainder of the year.
Got comments, questions or suggestions?
Send 'em on over:
Editor@smallcapnetwork.com
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L A I M E R :
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SmallCap Digest is an independent electronic publication committed to providing
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companies. SmallCap Digest is not a registered investment advisor or broker-dealer.
All companies are chosen on the basis of certain financial analysis and
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