Hi and good afternoon,
Question: Why do we love the small markets?
Answer: Because the small markets are the ground floor for new and young businesses and we try to find which of those businesses will “GROW” and make the big time… and if we’re right, we hit the big time as well. We love the small markets because they give us a chance to see companies “BEFORE” they hit it big… and if they do, shares could skyrocket returning percentages rarely seen in any other market.
Now, there is a reason I'm emphasizing two words above: 1) Grow and 2) Before.
I do this to illustrate a point sometimes forgotten: if we search for companies that have already made it and grown into something bigger than what it was at that “ground floor” level then perhaps we have missed the boat.
There are several industries out there right now that we consider “hot” and “booming.” Many of the companies in these industries could be overvalued due to that very fact.
Isn’t the saying “Buy low, sell high?” I.e. look at it BEFORE the crowd rushes in. BEFORE there is a large interest and popularity explodes making it “hot” or “booming.”
Investopedia has a great article titled: “Buffett: Buying When Others Are Selling”
Yes, that’s Warren Buffett they’re referring to and as the article states he “has made a career of buying at the most opportunistic times.”
Buffett is perhaps the world’s finest investor and he doesn’t want to get involved in something that is already hot, he wants to find situations that are down at the moment but have the potential to return.
Which is exactly what we’re focusing on this evening… an industry that is down at the moment but many experts predict will come back with a vengeance to surpass its former levels… in one opinion, it could almost double those former levels:
- OPEC's Secretary General said that there is a real possibility that oil prices could explode to upwards of $200 per barrel in the future!
- Billionaire T. Boone Pickens told CNBC that oil prices will rebound over the next 12 - 18 months back to the $100 mark.
I’d say that has rebound potential written all over it. Tonight’s new play BWPC is a “hidden gem” in US oil and gas that could have the “Big Time” potential we discussed above because it already has:
7 wells in place that are just a step away from production, and
These 7 wells are sitting on Mln’s of Barrels of oil at shallow depths that average about 1K feet
Wow, I’d say that fits our search to the “T”. It has big “GROWTH” potential and we are looking at it right “BEFORE” the wells are supposed to be coming online.
Anyhow, enough with my wordy introduction. Get ready to start your research on a company with massive potential and a breakout chart… BWPC will impress you in more ways than one:
Tonight’s new play is
Blue Water Petroleum (BWPC)
Website
http://www.bluewaterpetroleum.com/
Quote
http://www.stockta.com/cgi-bin/analysis.pl?symb=BWPC&cobrand=&mode=stock
BWPC is in the business of exploring, developing and acquiring oil and gas properties in the United States. Their primary operations are targeted on the Blue Water Project located in Big Horn County, Montana. The drilling target is the Tensleep Sand Formation that holds many Mln’s of Barrels of oil at shallow depths averaging 1K feet, normally between 600-1.3K feet.
The Company has completed its first 5-well production unit, another successful exploration well in the adjacent section, and a water well, for a total of 7 wells.
The first 5-well production unit is now ready for further development as soon as steam generation equipment is installed on location.
All wells have shown excellent saturated oil columns in the Tensleep Sand Formation. Further drill sites are approved, and a steam injection permit is approved:
- Oil in place is estimated to average 2.05Mln barrels per 40 acres.
- Recently released 51-101 evaluation report estimates 32.25Mln Barrels per 640 acres.
- Estimated 55% recovery rate equals 1.1Mln barrels per 40 acres, and 17.74Mln barrels per 640 acres.
The operator for Blue Water Petroleum Corp. conducted three successful core drilling procedures to capture and analyze the Tensleep Formation in the #51122 Tribal well.
The 3 cores were successfully recovered, and 1 foot core chips taken by the onsite geologists for description. The results from the drilling showed:
- Oil saturations averaging 50%, with high readings of 77%
- Perosity averaging 18-20% in payzones, with high readings up to 28%
- Permeability up to 700 md
In addition to the Blue Water Project, the Company is also focused on treatment techniques for the high-grading of lower quality crude oils.
The Company’s plan of operations over the next 12-months is as follows:
- Installation of steam or natural gas injection generator, or other improved method generator and a production pad to begin oil production on the initial production unit.
- Improvements to roads and production infrastructure.
- Drilling of additional 10 production wells (2 production units) in the area between the initial production unit and the adjacent exploratory well.
As discussed at the top of this profile, Oil & Gas has been quite volatile of late, although many experts are predicting a major run back to higher levels in the coming months. In fact, T. Boone Pickens told CNBC that oil prices will rebound over the next 12 to 18 months back to the $100 mark.
If you think that is impressive… well, OPEC's Secretary General has said that there is a real possibility that oil prices could absolutely explode to upwards of $200 per barrel in the future.
Montana is becoming an important location in the US oil and gas market… and that’s right where BWPC’s operations are located:
- In 2013, based on average first or wellhead prices, Montana oil and gas production was worth 2.6Bln Dlrs.
- The oil and gas industry is predicted to grow at a 7% compound annual growth rate, hitting almost 3.7T by the close of 2015.
- The global oil and gas market was worth just over 2.64Trillion in 2010.
As impressive as this Company’s operations are, lets briefly touch on the Chart, Indicators and third-party Analysis:
BWPC has made several runs during the past year. In fact, BWPC was at .40 in January of this year and has been pretty impressive ever since.
Couple that with the fact that both Barchart & StockTA show more than a dozen “Green” and “Bullish” indicators AND a “Very Bullish” Candlestick Analysis.
It also seems that BWPC could be on an upward trend… it is not too far off from its 52 week High. If it were to break through its resistance points we could just see something special.
Recent CandleStick Analysis: Very Bullish
StockTA Analysis:
Short Term: Bullish
Intermediate Term: Bullish
Long Term: Neutral
Overall: Bullish
Short Term Indicators
Exponential Moving Average (EMA): Bullish
Fibonacci: Bullish
Low Analysis: Very Bullish
20 Day Moving Average vs Price: Green
Medium Term Indicators
Exponential Moving Average (EMA): Bullish
Moving Average Convergence/Divergence: Very Bullish
Fibonacci: Bullish
20 – 100 Day MACD Oscillator: Green
Long Term Indicators
Exponential Moving Average (EMA): Very Bullish
Fibonacci: Bullish
100 Day Moving Average vs Price: Green
50 – 100 Day MACD Oscillator: Green
Now those are some seriously impressive indicators. Between the Mln’s of Dlr’s in Oil and the raging Green indicators, BWPC seems to have a lot going for it at the moment.
If the Company continues to grow and we see Oil and Gas rebound, BWPC could be that “hidden gem” we are constantly searching for… that “GROWTH” company that we find “BEFORE” they take off.
BWPC closed today at .69; there could be a significant upside. Start your research right away.
Remember, we always encourage you to do further research. Never just take our word for it. Read our disclaimer and always consult a professional.
Just because a situation looks great things can still go wrong and often do. Be smart and protect yourself.
Goodbye for now,
RB
