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Urgent Investor Alert
Eye-popping discovery by junior oil producer just days ago
leads to incredible ground-floor investment opportunity!
Geologists are hailing it as a 100 million barrel find
worth $16 BILLION!
A find like this could send this junior blowing up the stock
charts soaring from $0.60 a share to $1.80 in just months!
I just can’t contain myself and keep this Secret Stock a secret any longer—it could very well be the next Ultra Petroleum!
In a stunning development, the company just announced the results of a potential 100 million barrel find in its Utah Skull Valley property!
Twenty-five years of exploration has already gone into this play so there’s little question about what’s there.You can be sure that if a third party report points to as much as 100 million barrels of oil then I believe it. And it takes a lot to convince me.
Already producing in Wyoming’s
most famous oil basin!
My junior rising star is already producing in the same area of Wyoming’s Powder River Basin where super success Ultra Petroleum started. Early investors in Ultra reaped a breathtaking 10,000% profit!
In fact on one leasehold already 6.5 million barrels has been produced!!!
Pennaco Energy and American Oil & Gas used the Powder River Basin as their launching pad, soaring from juniors to big guns with 660% and 700% share price returns, respectively.
Reports show this junior, Ameriwest Energy (AWEC), is sitting on 7.3 million barrels of oil between two properties but much of it has been locked inside because the technology to extract it just wasn’t available.
Here’s where it gets really good
Combined with Skull Valley, these three properties are projected to yield as much as 107.3 million barrels of oil! See how that shakes out at my projection of $150 a barrel:
107+ MMBO to $150 oil = $16 BILLION
And tomorrow, when oil hits $150 a barrel? AWEC’s oil will be worth $16+ BILLION!
Ameriwest could be among my richest energy finds yet and I’ve had many—just look at the profits I’ve brought my subscribers over the past 25 years:
| • Suncor Energy (NYSE: SU): 432% gain! Bought on 4/1/01 at $12.69—Sold 10/5/06 at $67.50! |
• Kerr-McGee (NYSE: KMG): 238% profit! Acquired by Anadarko on 6/22/06 for $70.50 per share!! |
• Schlumberger Ltd. (NYSE: SLB): 339% rise! Bought on 7/3/03 for $24.01—still an open position at $105.31! |
In this Special Online Report I’ll tell you in detail everything this company, Ameriwest Energy (AWEC), has going for it.
Let’s not forget…
Wyoming is famous for bringing investors the big score: 660%, 700% and even 10,000% profit!
Ultra Petroleum. Pennaco Energy. American Oil & Gas. All winners in the great oil gushing state of Wyoming. They started out as relative unknowns—juniors like Ameriwest (AWEC). And their share prices have increased 10,000%, 660% and 700% respectively.
In fact, Ultra Petroleum started right in the Powder River Basin where Ameriwest is already producing!!! I haven’t even begun to tell you about the multitude of majors producing oil around AWEC.
We’re going to look at each property a little closer in a minute. Before I tell you about all of the exciting happenings at each of Ameriwest’s three properties, let’s talk about what’s forcing oil up to near unprecedented highs, even inflation-adjusted!
Here’s why oil is going to continue rising:
Fueling Force #1: A lethal energy cocktail:
thinning supply mixed with growing demand
It’s a simple law of supply and demand: supplies are dwindling, demand is soaring.
This year, the world will be using oil at a rate of more than 1,000 barrels per second. According to the Energy Information Administration (EIA) global oil demand will average 87.8 million barrels per day (bpd) this year, up from 87.5 bpd in 2007. At 87.8 bpd that equates to 1,106 barrels per second!
By 2030, global demand is expected to rise to about 115 million barrels a day. Don’t kid yourself that isn’t going to put a kink in the world’s ability to pump more oil out of the ground.
Meanwhile against the backdrop of a supersonic energy boom and the world’s addiction to oil, we have decline. Middle East oil fields are getting tired from years and years of pumping endlessly. Our own fields in the U.S. are in declining production.
The North Sea oil fields are in rapid decline. Take Mexico’s Cantarell Field, the second largest in the world. Already it has watched output fall 41%—that’s near half its production.
The sad truth is that very little production comes from fields discovered since 2000. And only 15% of production is from fields discovered in the 1990s.
Fueling Force #2: Emergence of China and
India as oil eaters and energy suckers
Everyone knows the big BOOM is happening across the world right now. China is exploding with the country in dire need of energy sources. They are sucking up oil like crazy with no end in sight.
To show you how much oil China is using take a look at this:
China’s consumption of crude oil rose from 5.6 million barrels per day in 2003 to 7.6 million in 2007.
In 2004, Asia surpassed the United States as the largest consumer of oil in the world, according to Daniel Yergin, chairman of energy analyst Cambridge Energy Research Associates. That demand is only going to swell beyond what the world can handle thanks to the growth in China and India where their combined demand is expected to double in the next two decades.
Reality is that they’re buying more cars, more consumer goods and demanding more electricity. One third of the world’s population lives in these two countries and they are clearly shifting the energy balance.
By 2030, India and China together will import as much oil as the United States and Japan do today.
America: still an oil offender
We Americans should be ashamed, too. We consume a quarter of the world’s oil every day—a stunning 7.5 billion barrels yearly. Oil consumption in the United States has jumped to 21 million barrels a day this year, from about 17 million barrels in the early 1990s. And more than half the oil we use is imported.
As long as China and India continue to grow at breakneck speed, which is expected, oil supplies are going to collapse under the pressure. This is very good news for anyone holding shares in an oil company—especially a junior like AWEC who has ample room for its share price to move.
Fueling Force #3: Continuing slide of the dollar
Take an egg and drop it on the ground. What results is much like what’s happening to the U.S. dollar. A free fall followed by a real mess. Our once almighty greenback is falling, hitting new lows against the euro and a new 12-year low against the yen.
Bad news for consumers…good news for investors in commodities like oil or gold.
Investors and speculators move to protect themselves against the dollar’s decline by moving into commodities like oil and gas. As the dollar drops, oil soars. And as oil prices soar so do gas prices.
Make no mistake. We’re staring $4 and $5 a gallon gas right in the face. Another commodity affected by the falling dollar is gold…and look at those prices. It has hit an astonishing $1,200 an ounce—investors hedging against the falling dollar.
"Oil and other commodities have an intrinsic value so that to the extent that the U.S. dollar depreciates, (oil) becomes relatively cheaper in terms of other currencies, such as the euro," said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney. "So you get an adjustment to compensate for that effect."
As of this writing the Fed just cut the interest rate again. Prevailing sentiment is that the dollar will continue to fall even as the Fed continues to cut rates.
Yes, indeed, it is a very good time to be invested in oil and in particular in a junior producer such as Ameriwest. For just pennies on your hard-earned dollar, you can buy shares of my latest Secret Stock pick. You don’t need to pour a lot of money into an investment either.
A $5,000 investment now at under $1.00 a share could be worth $15,000 in just 6 months! I don’t see the dollar rebounding anytime soon nor do I see oil dropping back significantly, if at all. My projections are firmly placed on $120–$150 a barrel oil in 2008.
That is very good news for early investors in Ameriwest (AWEC).
Fueling Force #4: The dirty “R”
monster that’s rearing its ugly head
We have to face it even if our politicians and leaders are in high denial.
Even the Oracle of Omaha, revered king of the investment world, Warren Buffet admitted our country is in a recession. Eventually those who resist the notion we’re already there will join the ranks of those who see things as they really are.
Some interesting surveys were undertaken recently by Duke University/CFO Magazine and the Wall Street Journal. Just to show you how far out of the loop Washington is right now let me share some of the findings with you:
- Fifty-four percent of the CFOs in the Duke University/CFO Magazine survey of 475 CFOs said the U.S. is already in a recession.
- Another 24 percent believe in a high likelihood of a recession later this year.
- Approximately 75 percent are more pessimistic this quarter about the U.S. economy than they were in the previous quarter. Concerns about issues such as consumer spending, turmoil in credit and housing markets, and high energy prices pervade.
- Most of the CFOs surveyed said the Fed’s interest rate cuts haven’t had any effect on their business.
And when the Wall Street Journal conducted a poll?
A full 71% of the people who responded believe we’re in a recession. (Heck, JP Morgan chairman and CEO Jamie Dimon believes America's in a recession.)
That same group also felt there was a 48% chance "that the 2008 downturn could be worse than what was felt in the early 1990s and in 2001."
Investing in a junior oil and gas company still has risk but there’s tremendous upside: the growth potential is tremendous. And having a junior that’s already producing diminishes the risk to an important degree. Of course because the share price is just pennies on the dollar as of this writing, even if it loses some ground during its early stages you’re still not losing your shirt. You’re protecting your precious dollars by buying early at a low share price!
PROPERTY ONE: South Glenrock C
Powder River Basin, Wyoming
Encana, Devon Oil, Marathon Oil and numerous
other oil giants all hold hundreds of leases
where Ameriwest is producing!
Even I was surprised to learn that 1,585 companies and individuals hold 6,282 active leases on nearly 3.5 million acres in the Powder River Basin. This famous Wyoming basin is a hotbed of drilling because it’s one prolific property.
To give you an idea of the enormity of this oil pool, the famous Big Muddy formation, which is just (a small) part of the basin, has produced 52 million barrels of oil over the years.
No wonder corporate oil raiders like Devon, Encana and Marathon Oil are busy pumping out black gold in the basin.
Then there’s our shining star, Ameriwest, already producing right alongside the big boys! Currently, production is just getting ramped up on this property where the company has a 99.5% working interest.
Engineering firm Nitec LLC reports that their geological evaluations show 4.9 million barrels of oil in recoverable reserves that can be tapped into using a tertiary recovery method known as CO2 injection. I’ll talk about how that works in a minute.
Right next door major production
is already taking place!
Not only is Ameriwest already producing but the company is producing right next door to none other than oil giant Anadarko in their Salt Creek field.
Anadarko has been producing 8,900 barrels a day in the Salt Creek Field with 10,000 a day projected—and Salt Creek neighbors Ameriwest’s property!
Ameriwest’s South Glenrock C field is also purported to be analogous to oil heavyweight Anadarko’s Salt Creek Field where over 600 million barrels of oil has been pulled from the ground since the first well was drilled.
There’s oil everywhere out there!
You gotta love it when you learn that right next door to Ameriwest’s South Glenrock C property is the South Glenrock B field which boasts current gross production of 210 barrels of oil per day with a value of over $10 million.
Taking these factors into consideration—not to mention the Fed’s latest rate cut, our country’s current recession and OPEC’s unwillingness to increase production—Ameriwest’s South Glenrock C field could be worth much more even just weeks from now the way oil prices are rocketing!
Using a tertiary method that’s fast gaining approval as a way to extract oil embedded in rock, CO2 enhanced oil recovery is increasingly being employed to break free formerly inaccessible oil and gas.
Years ago, oil giants like ConocoPhillips use to produce in these areas but didn’t have the technology available that would allow them to get all the oil. So they produced as much as they could and left the rest.
Now these former producing properties are being leased by oil companies to access the oil and natural gas still trapped in the formations. That’s exactly what Ameriwest has done on virtually every one of its properties. They’re all former producers for big names like ConocoPhillips and there’s still oil in these properties.
Sounds good but it’s not enough to just acquire the property.
Companies like Ameriwest have to have the technology, expertise and financial strength to drill and produce. That’s where many juniors stumble and for Ameriwest, where Exxon is unwittingly about to play a major role, saving Ameriwest what could amount to millions in savings!
To say this is huge doesn’t do this statement justice
You see, ExxonMobil is supplying one of Ameriwest’s neighbors with CO2 from its LaBarge gas field which the neighboring oil company needs for enhanced oil recovery at several of its nearby properties.
That’s important because now Ameriwest doesn’t have to spend one red cent to buy it! When ExxonMobil unleashes the CO2 for Ameriwest’s neighbor—and that same company finishes their $18 million pipeline—Ameriwest will benefit automatically in its South Glenrock C field!
The C02 will flow straight in, creating the pressurization that will break apart the rock and allow the oil to flow. It will naturally happen and there’s nothing anyone can do to stop it. Talk about a windfall gain!
How good is CO2 as a recovery tool? $420 billion energy giant Anadarko increased production 47%!
Since tertiary CO2-EOR is more recently making headlines, I did some investigating. To say I was impressed with my findings is an understatement.
During my discovery phase, I learned that Anadarko is successfully using CO2 flooding in the Salt Creek Field just miles from Ameriwest’s property.
Anadarko is no small player. This company is one of the world’s largest independent oil and gas producers with assets of over $420 billion.
It operates 3,500 wells across Wyoming and Montana, and is not only successfully using CO2 injection in its Salt Creek Field in the Powder River Basin, but also in Texas, Oklahoma, Alaska and Algeria.
In addition, the company has been using this recovery technique in the Second Wall Creek Formation in Big Muddy since 2004. Results have been stellar.
Anadarko achieves a near 50% increase
in production using CO2 recovery
Anadarko’s production increased 47% in Q2 2005 over Q1 2005. Subsequent quarters 3 and 4 saw growth of 20% and 17% respectively. Anadarko was so pleased with the response that the company initiated a CO2 pilot program in the First Wall Creek Formation.
CO2-EOR is proving so successful and lucrative in Wall Creek, Anadarko plans to use this technique to recover an additional 150 MILLION barrels of oil in Salt Creek—remember, this is the field right next to AWEC’s property!
To give you another frame of reference, Encana (NYSE:ECA) is also injecting CO2 into its Weyburn Oil Field in Saskatchewan, Canada. The company hopes to add as much as 130 million barrels of oil that would have otherwise been abandoned.
Currently there are over 80 CO2 EOR projects in the U.S. and more than 230,000 BOPD currently being produced by CO2 injection.
Since it was first introduced in 1972 in Scurry County, Texas, CO2 injection has been successfully used throughout the Permian Basin of West Texas and eastern New Mexico. Currently it is being used on a more limited basis in other states such as Kansas, Mississippi, Wyoming, Oklahoma, Colorado, Utah, Montana, Alaska, and Pennsylvania.
Property 2: Skull Valley
Tooele County, Utah
Skull Valley was first identified by Gulf Oil Company in the 1970s. Today, Ameriwest owns a 100% working interest in the nearly 7,000 acre
lease on the property.
Engineering reports point to as much as 50-100 million barrels of oil could be produced from Skull Valley. A stunning 25 years of exploration work has gone into this property so it’s easy to see why engineering experts are confident this oil can be recovered by primary production methods.
What’s intriguing to me is that the property has structural anomalies that have been likened to that of the oil-rich Grant Canyon discoveries just 125 miles away in neighboring Nevada.
Since 1983 Grant Canyon has produced over 20 million barrels of oil and may ultimately produce 30 million barrels.
At one point in 1987, Grant Canyon was producing 3,809 barrels of oil per day, making it one of the most prolific single producing onshore well in the U.S.
Right down the road just south of the Skull Valley Prospect in Sevier County, Wolverine Gas and Oil announced that its Kings Meadow Ranch has about 40 barrels PER HOUR flowing from the Navajo Sandstone.
Yet another property surrounded by oil, oil and more oil!
Skull Valley could be the next great Grant Canyon!
I like to see a junior on the move, already producing yet continuing on a buying spree, snapping up more property. Ameriwest already has
the capital to do so—with another $30 million in private placement expected over the next 12 months according to what management has told me.
Even though you may not see the enormous amount of oil that large oil producers pull from the ground on just one property, you have to remember that in this case it’s the cumulative numbers across all junior properties that bring the big money.
All of these finds keep adding to the bump in production. Next thing you know the company has 150–200–300 million barrels of oil being produced. It doesn’t take long for each property’s recoverables to add up.
Property 3: Burke Ranch
Powder River Basin, Wyoming
Ameriwest's most recent acquisition, Burke Ranch, is already a PROVEN producer—and is yet a second property in the Powder River Basin!
At this writing the company intends to ramp up production on its 1,920 acres where it has a 95% working interest. It also intends to drill wells on an additional 7,500 acres where the company has a 100% working interest.
Currently, the company is producing 24 barrels of oil per day at this field. Discovered in 1953, third-party engineering reports estimated there was still 13 million barrels of original oil in place. Reports show there are 3.4 million barrels of oil recoverable.
107.3 million barrels of oil could line your pocket$!
$11+ BILLION worth at today’s prices…potentially
$16+ BILLION at tomorrow’s prices!
Now’s the time to jump into junior oil and gas companies—the ones
like AWEC—that are already producing. Engineering reports firmly convince
me that the company is sitting on a mountain of black liquid gold!
Myers’ Secret Stocks • PO Box 402 • Hotchkiss, CO 81419
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