Perhaps some of you recall the article"Two cents to Two Dollars"...

Perhaps some of you recall the article
"Two cents to Two Dollars" in Nov 2012 by "The Next oil rush".

Seems that its faded into last years history but perhaps its key messages are worth rehashing..... briefly.


Source http://www.nextoilrush.com/index.php/two-cents-to-two-dollars-can-they-do-it-again/

"What does the ex CEO of a powerful Oil Super Major, a prominent European banking dynasty, a wealthy New York hedge fund manager and a Turkish Billionaire have to do with a promising, but little known, tiny oil explorer called Jacka Resources?
Read on, I will join the dots for you, and hopefully convey to you the exciting story and value proposition Jacka offers over the next few weeks and months. I have not seen a company score higher on the "Speculative Stocks: The 16 Crucial Investment Guidelines" 6 crucial investment criteria for picking oil stocks.
Jacka Resources: you heard it first at nextoilrush.com, put it on your watch list and thank me later.
Before we start talking about billionaires and oil major ex CEO Jacka first came to my attention a few months ago, after they acquired some oil exploration blocks with billion barrel potential in Somaliland, East Africa. Other assets owned by Jacka include:

Tunisia: 15% share in an oil well, that will start drilling in January 2013, estimated 42 days to reach target depth
Nigeria: 5% share in an oil discovery that has already been declared commercial – Resource upgrade expected in December 2012
Tanzania: Awaiting government approval on permits Tanzanian oil and gas deals are red hot at the moment.
Australia: 15% share in an early exploration project

In addition to these assets, this week Jacka announced a potentially company making farm in deal with Anglo-Turkish Genel Energy on Jacka’s Somaliland acreage. Genel Energy has free carried Jacka in a $50 million work program to drill one oil well, in return for 50% of the block, leaving Jacka with a 30% stake and no requirement to spend any money.
Who is Genel Energy you ask? Well, Genel Energy is a $3.7 Billion market cap UK listed oil explorer and producer (45k bopd) with $1 billion in cash to spend on aggressive expansion in the Middle East and Africa, but that’s not all…
Remember the former BP CEO, Tony Hayward? You would have seen him on TV constantly during the BP Gulf of Mexico Oil spill in 2010. An environmental (and PR!) disaster such as this demands a prominent scapegoat, regardless of who is directly at fault, and in this case the fall guy was the BP CEO. He is now the CEO of Genel Energy, his new pet project and chance for redemption in the oil game, and along with him come his political and industry connections, and an eclectic and impressive group of business partners and financiers which we will discuss a little later.

This deal done by Jacka to bring in Tony Hayward’s Genel Energy, get free carried on a $50 million work program in Somaliland, is extremely impressive. Not bad for a company with a market cap of less than $45 million.
I have recently taken a relatively large position in Jacka, and the stock price has been up as much as 45% in the weeks since "Jacka Resources up 30%. I posted about it on the blog in late September. Aside from the catalysts I have already mentioned, I predict that there will be a very powerful catalyst that will significantly drive up the price in the lead up to December 31.
I will elaborate on this catalyst a bit later in the article.

Jacka is still in the very early stages of its story, So if you missed out on getting in on my "East African Oil – Hot Tip of the Decade in February and are kicking yourself for missing out on the 600% plus (and rising) returns.

The current board of Jacka has an excellent pedigree. I want to draw your attention to the board’s previous project; Hardman Resources:
Jacka management from Hardman Resources" alt="Jacka management from Hardman Resources" .
Although many readers may not have heard of Hardman Resources, most people with an eye on the oil game in Africa would have certainly heard of Tullow oil. Acquired Hardman Resources for $1.5 billion in 2007.
The acquisition was at $2.02 per share, not bad for a company that was trading at only a few cents per share a few years earlier.

Of all the penny stocks I have ever invested in or traded, my favourite (and the most lucrative) stocks are the ones that are run by a board of directors that has worked together in the past, on companies that have been acquired for eye watering premiums. A proven track record of steering a penny stock to being acquired for dollars is obviously highly desirable when reviewing management.
The same team that orchestrated the above acquisition with Hardman Resources is now trying to repeat that success with Jacka Resources, and you have a chance to get in on the ground floor this time. Don’t you wish you had purchased a few hundred thousand Hardman shares at 2c each when they started trading above $2!
The Jacka board have proven that they know what they are doing in the past with Hardman Resources, and I can guarantee that a takeover is the end game plan for their new $45 million market cap oil explorer. It’s a no brainer given the – The Race for East African Oil has well and truly begun current scramble for East Africa by Big Oil after recent discoveries in Tanzania and Kenya.
I wonder if they can eventually get $1.5 billion for Jacka aswell? Is a 3800% profit too much to hope for? It should be easier taking into account inflation since 2006.
The strategy behind Hardman’s meteoric rise in the mid 2000’s was inking exploration JVs with bigger players, such as Woodside and ROC Oil, leading to an eventual takeover by Tullow. One of the factors in its success was taking stakes in smaller projects that were close to or currently producing oil, in order to fund further high impact exploration.
The management seems to be exactly repeating this successful strategy with Jacka, given its stake in offshore Nigeria about to move into production in mid 2013 bringing $20 million per year to Jacka, in addition to exploration JV’s with Chevron, Dragon Oil, Cooper Energy and most recently,
Same board, same strategy, seems like an exact copy of Hardman Resources to me…
There are a number of reasons why Genel Energy’s farm in to Jacka’s Somaliland blocks is a big deal.
As part of the deal, Genel Energy has free carried Jacka for a $50 million work program to drill one exploration well, in return for 50% of the block, leaving Jacka with 30% and Petrosoma (other partner) with 20%. Genel paying $50 million for 50% of the block, implies a total value of $100 million for the block, currently valuing Jacka’s 30% at $30 million.
Not bad for a $45 million microcap company!
Remember that this is a potential billion barrel oil block we are talking about here… Genel wouldn’t waste their time on anything less.
Genel’s CEO, Tony Hayward is an oil man with a lot to prove and ambitions to make a Lazarus style comeback in the industry. After the 2010 gulf of Mexico oil spill caused his unceremonious exit as CEO of BP, ending a 28 year career at the super major, Hayward has burst back onto scene with Genel Energy and an ambitious plan to aggressively create an company focused on the Middle East and Africa.
It is an amazing achievement to rise to the rank of CEO in the cut throat world of big oil, and I would imagine the journey leaves one with a very impressive list of government and industry contacts. Hayward is bringing all of this to Genel Energy, which listed in November 2011, is currently producing 45k bopd out of Kurdistan and is capped at $3.7 billion… AND has just entered a JV with little old Jacka Resources in Somaliland.
There is lots more but I think we can see that what is perhaps the future installed."

If Jacka starts scoring a few more major hits the drilling and FARMINS its potential for being swallowed up is on the cards.

Perhaps the reason the price has fallen recently is not a lack of value in the stock but that some investors have not grasped its real future potential and HAVE SOLD OUT early.
Would now Genal be a very potentially preditory partner if Somaliland showed OIL. Time will tell.
Or perhaps its being watched by a few others?

Lots more on the site including those billionares that are associated with Jacka and other farmins.