CVL in the Insider Report"THERE'S GAS UNDER THEM THAR' HILLS!" or is there?
stockhouse.com
The Insider contributors have been working overtime with their ears to the ground for tidbits on the East Lost Hills (ELH) exploration play. The Bellevue discovery well, as described in the StockHouse Interview with Richland Petroleum CEO Kerry Lyons (read the full text here: stockhouse.ca ) has been described as "...has the potential to be the biggest discovery in the last 30 years in the continental 48 States. And I do emphasize potential." Sources close to the drilling action at the wildcat Cal Canal well are reporting gas shows as drilling is closing in on target depth (14,000 ft.). The Greater San Joaquin Joint Venture partners all rallied today with a very active rumor mill saying that they've "hit" and analysts are busy with their calculators, trying to figure out what any of the companies would be worth if there is indeed several Trillion Cubic Feet (TCF's) of natural gas. With each TCF estimated to be worth $1 Billion, the speculative appeal for the participants is extreme. There are several Canadian brokerage firms following this play and we have found a great resource of online research at elandjennings.com
The shares of all of the Cal Canal participants were up today with Berkley Hilton Petroleum [T.BKP] up C$0.45 to $14.65, Hilton Petroleum [V.HTP] up C$0.70 to C$5.10, Westminster Resources [T.WML] up C$0.55 to C$8.75, Paramount Resources [T.POU] up C$0.75 to $21.50 and Trimark Oil & Gas [V.TMK] up C$0.45 to C$2.30.
The Insider Report has been following resource exploration plays since its inception. In 1994, as one of the first Internet-based newsletters, we experienced tremendous success when the Insider Report first featured Diamond Field Resources on November 16, 1994 at $4.50 and Diamond Fields went on to reach highs of $92.00 within the next year. We are hopeful that this emerging exploration story will bring some life back into the otherwise moribund Canadian junior markets, and let the Insider get back to it's roots - finding the hot plays, early.
The Insider's Headline Rule: Follow the Lead Story - Berkley Petroleum [T.BKP]
It has been our experience that the safest way for investors to participate in a major speculative boom is to buy the leader company with 80% of allotted speculative capital, and use 20% to buy the riskier "area play" stocks. Putting any amount into Stikine Resources (Eskay Creek), Dia Met Minerals (Diamonds in Canada) or Diamond Field Resources during their run made gutsy investors a pile of money. As the East Lost Hills play starts to heat up, Berkley Petroleum [T.BKP] is the leader, trading today at $14.65. It is the company that has the largest upside exposure to the East Lost Hills combined with the lowest downside risk. The ELH pure play stock, with highest potential for extreme volatility (read - riskiest, up to the moon or through the floor) is Hilton Petroleum [V.HTP]. With the story still in its early days and unproven, the Insider is looking at the slew of smaller juniors involved in the EKHO project in the East Lost Hills area and likes CVL Resources [V.CVL], which we first mentioned September 15, 1999 at C$0.53, trading today at C$0.74 as a highly leveraged company with over C$5 million in the bank and involvement in other significant oil & gas exploration projects. |
