SAM-DAN a little blurb I received in my e-mail today on your pick. At least they are promoting it. Thought you might enjoy it.
Is CPV the next Ultra Petroleum?
We were in the process of preparing a full report on Copper Creek Ventures (Toronto Venture Exchange: CPV) when the stock began to get active, last week. While we will deliver, as promised, we wanted to give subscribers a heads-up on this situation before CPV share prices run higher.
Copper Creek Ventures is an overlooked, undervalued oil and gas exploration and development company with an excellent land position in the prolific Green River Basin coal bed methane field. In recent days, it would appear that the investing public is suddenly becoming aware of CPV's potential.
CPV is launching its initial development program and the investing public is only now becoming aware of this junior's potential. The company's 20,000 acre position is situated just south of the 106,000 acre parcel recently acquired by Infinity Inc (NSD: IFNY $17.50). Given CPV's tight share structure (1.5 million float with only 10 million out) and the nature of Green River wells, when Copper Creek successfully completes these first three wells, the company's stock should command a fair market valuation in the $2.00 range. CPV shares now trade for slightly over 10 per cent of that projected price.
The Green River Basin in Wyoming is home to some of the most notable natural gas success stories in recent history. Companies such as Infinity Inc. and Ultra Petroleum (AMEX: UPL $9.00 / TSE: UP $14.00) have built blue chip entities on the strength of their Green River coal bed methane properties.
The reason these companies, and others, have enjoyed such success has to do with the nature of the Green River fields, where gas is found near the surface. Most wells are drilled to a depth of only a few thousand feet. With the recent introduction and refinement of 3-D seismic testing, completion rates are extremely high. Once online, wells produce for up to a few decades, with production actually increasing as wells are de-watered. The upshot is that Green River plays are relatively low risk and have a low cost of completion while producing cash flow for decades.
One of the big keys to success in the Green River is land acquisition. Copper Creek and its joint venture partners have tied up a favorable land position at a low cost. So the company is well-positioned to proceed with development work.
Although natural gas prices have come off panic highs of the past few years, the potential for upward prices spikes remains very real. According to US government reports, the shortfall in natural gas will remain a threat to America's secure energy future for at least seven more years. The price spike of 2000/2001 demonstrate clearly how volatile this market can be when demand outstrips supply.
Copper Creek is a domestic producer in a well-know producing natural gas field. The company is at the start of its development path and, if it can follow in the footsteps of forerunners such as Ultra and Infinity, offers investors the potential of multifold reward in a relatively low risk energy play.
In the past week, it would appear that word is getting out on Copper Creek as operators prepare to commence drilling. Trading activity in the company's stock has begun to pick up and it is likely that shares will see a substantial upward revaluation as CPV moves forward.
Could Copper Creek become the next Ultra Petroleum? Bottom line is, the company has a shot at it. |
