Guys ctp has been quoted in the most recent Daily Reckoning (I know its the daily reckoning) but see below...
Pocket Change Punt #3 If this high-risk play pays off it will be the investment story you tell your grandkids
If awards were being given to resources companies based on the size of its permit areas, then this stock would win hands down. No contest.
This stock has permits which cover 250,000km2 or about 15% of the Northern Territory's finest dirt.
It has a market capitalisation of just $87 million... but a few months ago and it was only half that.
But let me make one thing clear: this is possibly the most high risk stock I've ever tipped.
In fact it's so high risk I can't even put a number on where I believe the price could get to.
But the potential payoff here is incredible. We're talking about a five-digit percentage gain if this one achieves even one-tenth of what it hopes.
If you're prepared to take on this risk, let me give you a very brief rundown...
MASSIVE potential gas reserves
This company's permits cover land in the Northern Territory, with smaller permit areas in Queensland, Western Australia and South Australia.
According to the company, "In-house estimates of potential Undiscovered Gas Initially in Place (UGIIP) and Undiscovered Oil Initially in Place (UOIIP) in this acreage range up in excess of 200 Trillion Cubic Feet (TCF) of gas and more than several billion barrels of oil."
Let's just remember that Metgasco has around 1.4 tcf, and QGC had 13 tcf of gas reserves.
The 200 tcf that this company "estimates" isn't even at the 3P stage yet. That's why it's so speculative. 200 tcf of "potential Undiscovered Gas Initially in Place" could end up being ZERO tcf of natural gas recovered.
This little Aussie company has been buying up permits in the Northern Territory for the last ten years, snapping up land that no-one else wanted.
Now, you could argue that no-one else wanted it for a reason.
One reason was that when oil was trading below USD$20 per barrel it just wasn't economical to drill for oil and gas in the middle of Australia.
Ten years later, with oil around USD$80 per barrel the economics are a lot more appealing.
The other main reason I'm prepared to take a punt on this one is due to the company's cash position. It has $35 million in the bank, plus an additional $50 million available through a convertible bond. Cash in a market where credit is hard to get is very important.
If it wasn't for the cash position then this stock would be too risky. Still, this is an ultra-speculative tip.
However, if you like a punt and you like the idea of turning $500 into $10,000 or more then this could just be the one to do it. If even just a fraction of the potential gas reserves turn out to be real gas, this company will hit the big time and you'll make a serious amount of money.
All the detail you need to invest straight away is in your free reports: My Three Best Pocket Change Punts for 2010.
PS There is no copyright on this document
CTP Price at posting:
13.8¢ Sentiment: Buy Disclosure: Held
