I own a ton of Storm Cat because of Scott Zimmerman. I'll post my summary once again. Dyakowski just cleans up shells. Scott Zimmerman is the key to Storm Cat. No one else.
New Coalbed Methane Company--Storm Cat Energy--- Run by Industry Veteran with Production and CBM Revenues
**Wyoming-Canada-Alaska-Mongolia (China 17.5 MILLION ACRES !!)**
Introduction:
The September 30, 2004 $ 2.1 BILLION acquisition of Evergreen Resources, a leader in CBM technology, by Pioneer Natural Resources created this unusual opportunity:
Evergreen's Vice President of Operations and Engineering, Scott Zimmerman, age 48, was out of a job. His annual CBM drilling budget at Evergreen was approximately $ 200 million !!!
Scott spent from 1982 to 2002 with private JM Huber heading up their large CBM properties. He earned only a salary during that period. At Evergreen he was third in command but did not have the stock holdings that the other two had. Zimmerman was now very hungry to build his own major CBM company.
On October 19, 2004, less than one month after the Evergreen acquisition, Scott Zimmerman joined tiny Storm Cat Energy (SME or SMEFF in US) as CEO and President. He has immense CBM expertise developed over 22 years. One of Mr. Zimmerman's references has stated he is "the best CBM operator in the country."
This is a China Play also in that Storm Cat controls 17.5 MILLION ACRES of Coalbed Methane in Mongolia. In addition the company recently acquired production in the Wyoming Powder River Basin and thus now has revenues.
The Storm Cat stock has been recently recommended by two newsletter writers, Michael Schaefer (who has stated that he believes Storm Cat is his best stock pick in his twenty year career) and Ron Struthers.
1) Newsletter writer Michael Schaefer general description piece of Storm Cat Energy:
Dear Investor:
In its September 6, 2004 issue, Oil & Gas Journal named the emerging natural gas sector of coalbed methane as "one of the fastest growing sectors in China's energy industry."
One tiny coalbed methane stock, with access to the huge Chinese CBM market, is up 650% in the past 15 months. But I think it'll be trading for $200 a share (up from its current $3.90 CDN a share) by July 2008.
Here's why:
Forty kilometers across the Chinese-Mongolian border is one of the largest coalbed methane properties in all of Asia.
It's so big, you could literally fit the states of Maryland, Delaware and Rhode Island inside the property, and still have more than 2 million acres leftover.
In fact, this CBM property in Mongolia is twice the size of ChevronTexaco's massive Anhui coalbed property it acquired in China in 1998.
The tiny CBM company I'm talking about operates in Mongolia right now. In April they struck a deal with the Petroleum Authority of Mongolian to develop the vast natural gas trapped inside the property's coal seams.
How much natural gas are we talking about?
Based on known coal parameters, the property contains enough gas to fuel my home state of Wyoming for 22 straight years!
The property is twice the size of ChevronTexaco's CBM field in China;
The Chinese are currently paying $3 per 1000 cubic feet for gas… which means this CBM field could be worth at least $3 billion;
The Chinese just built a gas pipeline along the Chinese-Mongolian border… so tapping into these massive reserves will be easy;
The stock is insanely undervalued… based on the Mongolian estimates, every $1 you invest in this stock gets you 66,333 cubic feet of natural gas, valued at $199!
The story gets better.
I haven't even mentioned the fact that the company just acquired a producing CBM property in the Powder River Basin in Wyoming, the largest CBM producing region in the world.
The property - called the Jamison/North Miles filed - is producing 1 million cubic feet of gas per day.
It currently trades for $3.90 a share.
Check out the stock's chart:
finance.yahoo.com
But believe me, this is just the beginning.
You see, 2 events occurred in 2001 that bode well for this tiny company and coalbed methane in general.
Those dates are July 13 and December 11.
Rising Dragon
On July 13, China was awarded the 2008 summer Olympics.
The reason this is a monumental date is because the Chinese believe… come 2008… this is their chance to show the rest of the world it's an economic power. As a result, the Chinese government has implemented a policy called the Growth Imperative.
This means they want the Chinese economy to grow at all costs. This further means the Chinese need energy… a lot of it.
According to Oil & Gas Journal, September 6, 2004:
"China has budgeted more than $9 billion to boost gas usage to 8% by 2010 from 2% today. Part of that plan calls for natural gas to replace coal as the major source of electric power generation in Beijing by the 2008 Olympics.
Consequently, one of the fastest-growing sectors of China's energy industry is coalbed methane…"
And the growth has just started. To date, China has only 200 coalbed methane wells compared to over 18,000 wells in Wyoming!
The other date is December 11, 2001. On that day, China was accepted into the World Trade Organization, which essentially put that nation on the "fast track" to economic growth.
To give you an idea of what this means, take a look at chart of natural gas.
It's not a coincidence that natural gas prices started rising the same year China implemented its Growth Imperative in 2001.
What to do Now
Coalbed methane (CBM) is the expected to be the world's future source of natural gas.
With a shortage of natural gas becoming abundantly clear… more and more governments (especially the Chinese) are turning to CBM to make up the shortfall in natural gas.
And there are only a handful of companies in the world with the technical expertise to extract natural gas from coal seams. And the tiny company I'm telling you about is one of them.
In fact, they're some of the best in the business.
I think we could see the stock rally from its current price of $3.90 a share to $12 a share by 2005. And that's just the tip of iceberg, in my opinion.
This stock could reach $200 a share by the 2008 Summer Olympics.
That's why I'm offering you a report that explains the opportunity in this Mongolian CBM play. The report is absolutely FREE. Plus, along with the report, you'll automatically receive Wealth Daily, the best investment daily on the net.
In this report, I reveal the name of the stock and the company's top shelf management.
Plus I also reveal more about how this stock could gain +300% by 2005… and 6,679% by 2008
To get immediate access to the report, please visit here now!
Sincerely,
Michael Schaefer, Editor
Michael Schaefer's Secret Stock Files
P.S. Don't wait too long. Get this report, because as you read this, beside all the production and property work, the company is gearing up for an AMEX listing.
Bio Snapshot: Michael Schaefer grew up 2 doors down from Warren Buffett, attended the prestigious Colorado School of Mining, and turned one subscriber's $750,000 into $50 million on a single stock recommendation.
Michael is considered to be America's greatest resource stock speculator… And is referred to as the "other Oracle from Omaha."
His investment insights have produced 22 winners out of the last 28
recommendations, with an astounding portfolio performance of 94% this year alone!
finance.yahoo.com
U.S. Symbol SMEFF
2) About Newsletter writer Michael Schaefer ---
See Michael Schaefer's track record here--click on portfolio:
secretstockfiles.com
Here is another Schaefer CBM pick:
finance.yahoo.com
Here is Newsletter Michael Schaefer promo piece written BEFORE Zimmerman came on board-NOTE Schaefer's background:
wealthdaily.net
2 a) Excerpt from Schaefer original STORM CAT Recommendation:
"This is the reason the Chinese are building, just south of Storm Cat Energy's coal bed methane lands, a $4 billion natural gas pipeline.
This is very important.
The Chinese are building the infrastructure that will start the transition to cleaner energy sources... and the pipeline will transport Storm Cat's natural gas.
Why coal bed methane is the new energy source of the 21st Century
Natural gas is made up of a variety of gases, propane, butane etc. but the main component of natural gas is Methane. The propane and butane and other gases and liquids are separated out leaving mostly methane gas.
Coal bed methane gas and natural gas are interchangeable. It's what you use to heat your homes and cook your food. It's the preferred energy choice for generating electricity and providing energy for industry.
Storm Cat Energy just signed a production sharing agreement based on global industry standards that covers the exploration and development of 50,000 sq. kilometers of land containing known coal reserves.
This is over 17.5 million acres of ground.
It is the largest production sharing agreement ever signed in the history of the country of Mongolia. In fact, the signing of this agreement was a huge event in Mongolia. It was attended by dozens of state officials and dignitaries, and numerous speeches were given outlining the importance of this agreement.
The whole affair was carried out in grand fashion with the appropriate pomp and ceremony. In fact the whole event was covered by national television.
I'll tell you why this is so important to the Mongolian government.
It's because they will get 20% of the net revenue from the gas sales to China. This is quite normal in the industry. Even in the United States it is revenues and royalties on oil and gas that bring in billions of dollars every year.
In fact, it's the reason why, in my home state of Wyoming, we have a billion dollar surplus in our coffers while the rest of the states are broke almost to the point of bankruptcy.
You see, Wyoming is the largest coal producer in America and has huge coal bed methane gas production. The state and the federal government share the royalties and revenues paid by the producers.
The Mongolian government knows the value of these vast coal reserves and the enormous potential for the billions of dollars that coal bed methane development from this agreement with Storm Cat Energy will bring to the Mongolian treasury.
The Coal Beds
In Wyoming, coal and coalbed methane production is chiefly from the Wyodak coalbeds which account for more than 80% of the state's total. The Wyodak coalbeds are the thickest coalbeds in the United States. They average about 70 feet in thickness and in some places they can exceed 100 feet in thickness. Now pay close attention to this, but this shocking.
Storm Cat's coalbeds in Mongolia consist of at least nine coal seams lying on top of each other. The thickest individual coal seam is over 250 feet thick! This is over double the thickness of the thickest and richest coal seams in the entire United States and this is only one coal seam out nine known to exist.
There are a variety of coal ranking systems used around the world. In the United States they use the ASTM standards which rank coals according to their energy content. They measure caloric content, and the content of volatile matter along with a few other things like sulfur content. Then they give the coals a ranking from low to high depicting their energy content. Storm Cat Energy's coals in Mongolia carry a high ranking.
Another very important aspect to look for is a phenomenon called cleating. Rather than solid hard coal like a solid block of concrete you want coal that has been fractured providing porosity and permeability.
It is through these cracks that the coalbed methane gas can flow. It appears that Storm Cat's coalbeds in Mongolia have a high degree of cleating.
At the right place, at the right time
Storm Cat's timing is impeccable.
Before the Chinese decided to build this new $4 billion pipeline, Storm Cat energy's coalbeds in Mongolia would have been worthless because there was no way to get the gas to market. Now Storm Cat could be sitting on a goldmine worth something on the order of US$5 billion.
According to known coal parameters the gas resource could fall into the multiple tcf category. We could be talking somewhere between 3 and 7 trillion cubic feet of gas. China, right now, is paying between $2.75 and $3.50 per mcf of gas and they'll buy all you can deliver. At $3.00 per mcf, a trillion cubic feet of gas is worth $3 billion. So 5 trillion cubic feet of gas is worth 15 billion dollars gross.
Even just figuring $1.00 per mcf in the ground 5 trillion cubic feet of gas is worth US $5 billion. It's not difficult to see how this project can take this tiny $1.00 per share stock to something approaching $200 per share. Have you ever owned shares in a company that even had the remotest possibility of achieving that type of share appreciation?
Now, I don't want to mislead you. I'm not saying this is a sure thing. There is a lot of work to be done between now and that $200 level. But I believe by the end of this first seasons work program, which will include extensive mapping of the coalbeds and test drilling, that we will have a pretty good idea of the economic viability of this project. Once we know that, this stock will take off like a rocket. I expect it to appreciate substantially before we get to that point, which is sometime in November.
The people behind Storm Cat
Some of the top coalbed methane and unconventional gas guys in North America have looked at this deal and think its one hell of a project. This brings us to the next key component of Storm Cat Energy's ultimate success. After all, we've already got some of the thickest coalbeds in the world at more than 250 ft. thick with another 8 additional coal seams. Plus we've got high-ranked coals according to energy content. We've good cleating within the coals and a pipeline within fairly easy reach. The only other thing we could ask for at this stage is some of the best people in the world.
Dr. Bob Bereskin is one of the most highly regarded unconventional gas guys in all of North America. Dr. Bereskin is VP of Exploration for Storm Cat Energy. Bob's resume is ten miles long and he has authored scores of publications in the realm of coalbed methane and unconventional gas. Literally, this guy is the experts expert when it comes to coalbed methane. His peer group is pretty rarified and can be counted with the digits on your hands and feet. There is a very small group of guys in North America at this level of expertise. Dr. Bereskin is the lead guy on the exploration side for Storm Cat. Working with Dr. Bereskin and a person with extensive experience in Mongolia is Yaro Horachek.
Yaro did extensive mapping of the coals in Mongolia for the World Bank in 1998. He has intimate knowledge of Mongolia's coal fields. Yaro Horachek has been studying coals and coalbed methane for 30 years. He has a Masters Degree in Geology and has a resume almost as long as Dr. Bob Bereskin's. Yaro is an on the ground get your hands dirty kind of guy and he'll be in the field running three exploration and mapping crews for Storm Cat Energy this summer in Mongolia.
In country, Storm Cat was fortunate to be able to hire a gentleman commonly referred to as the "best coal geologist in Mongolia". He earned this reputation from spending decades studying and evaluating Mongolia's coals first hand. His name is Chimiddorj (pronounced Jimmy Dortch) He is currently working for Storm Cat on a part-time basis but in another couple weeks he will come on full-time as part of the exploration team and acquisitions team. And yes, they are actively pursuing additional acquisitions of similar magnitude.
Another in country asset for Storm Cat Energy is a phenomenal gentleman named Khurelbat (pronounced Hurl Bat). Khurelbat is fluent in English and Mongolian. He actually taught the Mongolian language at a university in the United States for a number of years. Khurelbat is a full-time member of the Storm Cat team and his official title as "Office Manager for Mongolian Operations" does not do justice to his vast capabilities.
To say that Khurelbat is well-connected in the upper echelon of Mongolian society, politics, and industry is an understatement. Time and time again Mr. Khurelbat has made the impossible possible. It would be inappropriate for me to go into details here so let's just leave it that Mr Khurelbat is an invaluable asset to Storm Cat Energy's Mongolian ambitions.
While these are the guys focused on Mongolian operations, Storm Cat is also in negotiations for acquisitions in Western Canada. The Western Canadian operations are headed up by the talented Brian Mahood and Mike O'byrne. Brian is another 30 year veteran of the Western Canadian oil & gas scene specializing in coalbed methane opportunities for StormCat. Mike O'byrne is a well-respected landman that's worked in Western Canada all his life.
I should also mention that in addition to negotiations in Canada the company is pursuing production opportunities in the United States. The interim president of the company Chris Dyakowski will step down when the main man arrives to take that position. I don't know who that is yet but I'm told new president will be announced within the next couple of months. I've got to think that with the caliber of people already on the team it will be someone with impeccable credentials and the charisma necessary to build Storm Cat's already extraordinary potential.
I haven't even mentioned Storm Cat's stellar advisory board. The first three names, Dr. R. Marc Bustin, Matt Maver and John Siedle have to be classified up there in Dr. Bob Bereskin's peer group. These guys are some of the most knowledgeable coalbed methane professionals in the business.
The fourth member of Storm Cat's advisory board is Chief Joseph Norris. As many of you may or may not know, in Western Canada the 1st Nations people wield a big and powerful influence over development on their lands and surrounding lands. A company doing business in that part of the world needs to develop a good relationship with the 1st Nations and Chief Joseph Norris is a powerful force in that regard.
I could probably ramble on for another five pages but I think you've now have a pretty good picture of why I'm so excited about Storm Cat Energy. It's rare, maybe two or three times in a lifetime do you come across a company with the possibility of going from a $1.00 a share to $200 per share. I can clearly see how this is a future possibility with this company.
I've had lot's of 10-baggers in my career, stocks that have gone from $1.00 to $10.00 for a 1,000% gain and that is a big win. But to find a stock with even the remotest possibility of a 10,000% gain is a rare bird indeed." END
2b) Michael Schaefer Newsletter update November 18, 2004:
"Storm Cat SME-TSX.V announced an actual production acquisition in the Powder River Basin of Wyoming. I believe this makes Storm Cat the first and only junior Canadian explorer with actual CBM production.
Storm Cat bought this property because they believe they can increase production significantly in a relatively short period of time. This property will generate a good deal of cashflow and increased production means increased cashflow. This is just the beginning.
When I first introduced Storm Cat President Scott Zimmerman to you, I told you he was a company builder. I didn't say that because it sounded good, I said it because that is what this guy lives and breathes for. He is a company builder. He has the expertise, the knowledge, the contacts, and the experience when it comes to unconventional gas to get the job done.
That's why I say this is only the beginning for Storm Cat Energy. This company is going to grow rapidly through both exploration and acquisition. A year from now we'll look back and say how lucky we are we were able to get in at $2.00 a share. " END
2c) Update from Michael Schaefer December 3, 2004:
Speaking of Oil & Gas we've got to briefly mention Storm Cat Energy SME-TSX.V which has been as high as C$3.20 in the past couple of weeks. I'm sure that from the way I've been consistently urging you for months and months to buy this one that you all have big share positions.
Even at today's price of C$2.80 I reiterate earlier statements that this is just the beginning for Storm Cat Energy. I spoke with Storm Cat's President, Scott Zimmerman on Wednesday and he is very excited with the company's recent acquisitions, the staggering potential in Mongolia, and the new opportunities he's seeing for the company.
Scott said they just took possession of their 1st production acquisition in the Powder River Basin of Wyoming and they're ready to get to work on it right away. The Storm Cat guys don't let any moss grow under their feet because next week they are off to Mongolia once again.
Whether you're a new subscriber or a long-time subscriber to Wealth Daily, please do yourself a favor and make sure you own Storm Cat Energy." END
2d) Schaefer December 10, 2004 update: He talked about Powder River Basin in Wyoming, Alaska and Mongolia. Concluded coverage with this statement:
"As long as we are on the future outlook for 2005 for Storm Cat Energy we have to expect to see a full listing on the Toronto Stock Exchange and a listing on the AMEX Exchange before the end of 2005. As I've said so many times, this is just the beginning for StormCat so I suggest you put it in your long-term core portfolio." END
3) Newsletter Recommendation (Ron Struthers----Struthers originally recommend Ultra Petroleum at $ 1.30 and still holds it in his newsletter portfolio see stock chart finance.yahoo.com )):
Struther's Resource/Tech Alert V10 #10.6 SME Nov 16, 2004
PO Box 1020 Owen Sound, Ontario, Canada N4K 6H6
Yearly subscription $185 cdn/year $149 US
Web Site "http://www.playstocks.net" Phone-519-374-9332
I have decided to send this alert out now and will have my complete report in December and will feature a new gold stock this month.
Storm Cat Energy Symbol TSXV:SME Symbol SMEFF U.S.
Shares outstanding 12.0 million approx. Very small market cap.
There is 3 main reasons to buy this stock:
Management, management and management
The next 2 reasons are the huge gas potential of their Mongolia property and management's connections will mean some excellent acquisitions in North America such as the one announced Monday. The key thing to understand about Storm Cat is the management expertise that is assembled for this tiny junior company is as good or better than what you would find in the best senior oil &gas companies. Storm Cat has extensive expertise in Coal Bed Methane (CBM). In the current market environment of high natural gas prices and the dwindling supply of conventional gas supplies, CBM is an area that will receive a lot of focus in the years ahead. Storm Cat's personal have plenty of experience in developing CBM projects in the U.S., but the CBM potential in Canada is just in its infancy. I expect Storm Cat will pick up CBM projects in Canada as well as in the U.S., on top of the giant Mongolia project they already have.
While Mongolia is important, I expect Mr. Zimmerman he is going to focus on Wyoming and also in Canada. Mongolia is huge (12 million acres) and potentially contains 3 to 7 trillion cubic feet of gas, but this may turn out to be just the icing on the cake. They will probably do a JV in Mongolia and then focus their resources in the areas that Zimmerman knows in the U.S. and Canada.
Storm Cat is already in negotiations for acquisitions in Western Canada. The Western Canadian operations are headed up by the talented Brian Mahood and Mike O'byrne. Brian is a 30 year veteran of the Western Canadian oil & gas scene specializing in coalbed methane opportunities for StormCat. Mike O'byrne is a well-respected landman that has worked in Western Canada all his life. "END
Scott Zimmerman Bio
Mr. Zimmerman is President of Storm Cat Energy. He is an innovative and highly accomplished engineer in the North American coalbed methane industry. Mr. Zimmerman joined Evergreen Resources, a premier leader in the development of coalbed natural gas, as Vice-President of Operations & Engineering in January 2002. Prior to this, as J.M. Huber's Vice-President-Energy Sector, Mr. Zimmerman spent 20 years specializing in CBNG exploration and development in the Rocky Mountain region, with emphasis on the San Juan and Powder River Basins. Prior to J.M. Huber, Mr. Zimmerman was the Senior Production & Reservoir Engineer with Amoco Production Company. Mr. Zimmerman received a BS in Petroleum Engineer from Texas Tech University in 1979 and is a member of the Society of Petroleum Engineers.
Zimmerman interview:
wallstreetreporter.com
Evergreen Resources
Leader in coal bed methane technology
Evergreen Resources is an independent energy company engaged primarily in the operation, development, production, exploration and acquisition of North American unconventional natural gas properties. Evergreen is one of the leading developers of coal bed methane reserves in the United States. Evergreen's current operations are principally focused on developing and expanding its coal bed methane project located in the Raton Basin in southern Colorado.
Pioneer Natural Resources Company and Evergreen Complete Merger
September 28, 2004
Pioneer Natural Resources Company and Evergreen Resources, Inc. announced that they have completed their $2.1 billion merger in which Evergreen has become a subsidiary of Pioneer and Evergreen stockholders will receive new shares of Pioneer common stock and cash.
news.xinhuanet.com
Engineering academician predicts dearth of natural gas in China
www.chinaview.cn 2004-11-04 20:51:07
SHANGHAI, Nov. 4 (Xinhuanet) -- China will likely face a short supply of natural gas, as its demand for the energy is on the rise along with a fast economic growth, according to Han Dakuang, an academician from the Chinese Academy of Engineering.
From stockhouse thread and found this:
stockhouse.com
"the new president is one of the best coal bed methane guys in North America with an unreal track record of helping build a billion dollar company?"
See:
stockhouse.com
Storm Cat Energy
Suite 100 - 521 3rd Avenue, SW
Calgary, Alberta Canada T2P 3T3
Telephone 403-261-3605
email info@stormcatenergy.com
Website stormcatenergy.com
QUOTE:
stockhouse.com
OR
finance.yahoo.com Canadian dollar quote
US Symbol: SMEFF
stockhouse.com
DISCUSSED:
stockhouse.com
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