Dollar volume has been pouring into today’s higher priced trade opportunity. We have found a domestic energy company that is providing a solution to foreign oil dependency. Let’s dive right into all of the juicy details behind today’s fully reporting, 90 cent company.
OREO – American Liberty Petroleum Corp
Oil, the necessary and finite food for the global economy has seen upward pricing pressure for decades now. Investors that have been “long oil” since the dawn of the 20th century have most likely seen serious appreciations.
The USA has long been dependent upon foreign oil, namely the Middle East. OPEC is not controlled by the USA nor do we have much leverage in swaying any price fixing and supply basements and ceilings for the betterment of our citizens and corporations. Several recent trends have led to an even greater surge in oil and gasoline prices at home.
Many citizens (consumers) forget that oil affects the prices and ergo inflationary trends of massive product classes because petroleum is used in plastics, cosmetics, paint, tires, antiseptics – the list goes on and on and on.
Oil is our lifeline and blessing as a civilized species that demands globalization and business speed. Recent catalysts for oil inflation are dollar depreciation from the financial crisis, increasing global demand as more countries and people enter stages of the industrialized world, a finite and diminishing oil supply that now costs more money to reach tricky and deeper locations, and expensive technologies and innovations needed to squeeze oil from different sources.
To compound the pressures, you have OIL lobbyists pushing for tax burdens, higher Returns for shareholders, and agendas against Alternative Energies. With environmentalists making off-shore drilling a delayed reality, Americans plea for cheaper and quick, domestic energy resources to lessen foreign oil reliance
American Liberty Petroleum Corp. (OREO) believes that they are part of the solution, and they are pushing forward to make energy at home a certainty.
If you decide to read one piece of info on OREO, make sure it is their investor Fact Sheet, which can be found here.
OREO is a Bakersfield, CA based oil and gas company that is in the process of tapping overlooked or undervalued onshore domestic resources through exploration and development technologies not previously available. OREO intends on discovering major, new onshore US energy resources that sharply reduce the nation’s need for imported oil. OREO has 2 keystone projects located in Nevada at this juncture in 2012. Massive finds at the Occidental mean that we are statistically in a hot bed of historical and modern oil finds.
What Projects is OREO currently developing?
There are 2 projects being advanced in Nevada at the moment. The 1st is Gabbs Valley Prospect. It is located on the Cobble Cuesta structure, a faulted anticline estimated to represent reserves of 4+ billion barrels of oil.
Nearby Comparable: similar source rock in Grant Canyon Field; produced 20+ million barrels of oil on only 300 acres. The Occidental Discovery (Largest in California in 35 years) reports state that if only a fraction of the estimated reserves are found to be in the Cobble Cuesta structure, it will still rank among the largest oil accumulations in the western United States!
The potential for the Gabbs Valley Project is, needless to say, absolutely incredible.
The 2nd Project is Kibby Flat Prospect. It is located in the southeastern part of Nevada’s Monte Cristo Valley, and represents estimated ultimate recovery as high as 669 million barrels of oil.
Holdings: 7,270 acres
Ownership: 75% Working interest; 63.375% NRi
Regional Production: Grant Canyon Field just over 100 miles east produced 20+ million barrels of oil on only 300 acres.
As is evident, OREO has prime geographic locations to fulfill and surpass current shareholder expectations. Combined estimates are over ~4.7BIL barrels, and the company plans to explore surrounding areas as future drilling results suggest advancements. There are not that many domestic oil/gas public equities trading opportunities of such size and possibilities in Western America. In a state with such potential as Nevada (only 9 producing oil fields) OREO is a prime candidate to now enter an esteemed group.
Does OREO have any partners in the refinery and exploration
business? What can we expect in the future?
In late April, OREO closed a Crude Oil Purchase Contract For All Production from Gabbs Oil Field. Such a monumental event for shareholders sparked current CEO to declare that “We’re fortunate to now have an agreement in place with a nearby refiner for the purchase of all subsequent production from our Gabbs Valley-based activities. Our next step is to maximize on the production potential of the Paradise 2-12 well while further exploring our other opportunities in the area.”
As OREO has secured lease and well acquisitions through early 2012, traders have taken notice. We are now at a point where OREO is not far off from obtaining significant revenue streams as resources are recovered and sold to our newly contracted refiner. The pieces are all being put in place, and the market is taking notice.
What is the current Market Opportunity for OREO?
Clearly there is an appeal to the American consumer, refineries, and politicians for domestic oil and gas resources. Uncertainty caused by the ARAB Spring only reignited fears over our energy reliance on such a chaotic political realm that holds such vast supplies of Black Gold. We must begin the weaning process if we are to avoid disaster. The public loses an astounding percent of disposable income on every $.10 increase at the gas pump. Imagine the percent lost when we factor in inflation in all related asset classes? President Obama’s target to decrease US oil imports by a third by 2022 may well be doubled, given the pace of US discoveries in the Gulf of Mexico and onshore.”
An article in Oil and Gas Investor observed that Nevada is one of the last places where a start-up company could still find its way to fortune. Recent significant discoveries, such as Occidental Petroleum’s estimated 1+ billion barrels of oil and natural gas equivalents in California, underscore the potential for developing new oil and gas production solutions in western America. Nevada appears UNDER-EXPLORED – plain and simple. OREO’s holdings are situated on a structure with enough estimated oil reserves (4.7+ billion barrels) to dwarf the Occidental discovery.
Nevada currently has ~51MIL barrels of oil produced as of March 2010. There are 9 producing oil fields with Grant Canyon representing ~21MIL barrels of Oil production as of February 2010. Oil and Natural Gas Prices
Recovery rates are generally very high in Nevada due to an active fresh water drive that commonly provides the energy for oil production, eliminating the need for secondary recovery efforts. The net result is that Nevada oil production can be very efficient, effective and economical, with none of the trouble and expense associated with secondary and tertiary recovery efforts. Growing demand and the expectation of rising prices point to a timely market opportunity for nimble, progressive companies – such as American Liberty Petroleum – that are able to respond as needed.
OREO has caught the eyes of interested traders and investors to the tune of around $500K/day volume up to over $5M in dollar volume. OREO is getting serious attention as it nears production and revenue-generating stages.
Accumulation has been up-trending impressively the past 3 months, and technical traders will see OREO is nearing a MACD cross. The RSI is nearly oversold at 33. If volume, accumulation, and business progress continue, OREO may be due for a quick bounce back to previous support at $0.96.