PETROSTAR Message Board - Msg: 27067303

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Gold/Mining/Energy : PETROSTAR

PEP 142.24

-0.9%

Jan 2 3:59 PM EST

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To: james flannigan who wrote (33)	1/4/2011 11:49:20 AM
From: james flannigan	of 50

For what could be the Bakken speculation of 2011. I would suggest spec investors who have a risk profile to have a look at Petrostar.PEP showed a lot of promise in its Bakken play in early 08.Then the financial crisis hit and most investors wanted nothing to do with stocks in general let alone risky spec jr oil plays.Fast forward to 2011 and investors are showing that they are starting to warm up to stocks and risk again.In the JR space it is in my view just getting started.Given the fact that China and India are importing oil in record amounts even though the world economic recovery is growing at a snails pace suggest that oil is going to remain at high price levels for some time.If by chance the US were to get upside to the recovery more than expected in 2011 it would not be out of the question of a $100+ handle on the price of oil.This will fuel investor attention on JR oil plays.PEP stands to be in the sweet spot under these kind of conditions.First it has been given up for dead if one were to look into it assets in relation to its market cap less than $10 million.Yet for investors willing to take a closer look we can see that this company under its new management has a clear focus now on its Bakken land.A company with land is only half the battle.It needs cash to make things happen.To this PEP has a funding solution lined up with Capital Merchant Bank out of Florida.The founder of that firm has taken a shine to PEPs prospects and has done the deal him self.We are talking $20 million to start(not bad for PEP a company with less than $10 million in market cap)The company has 8 targets they will test on the first phase of drilling expected to start in Jan 2011.It should be noted that land and funding can work wonders in the hands of the right kind of manager. Conclusion: PEP has a hell of lot more going for it in 2011 that the market gives credit.If success of any one drill hole finds oil then we are talking a much greater market awareness. James

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