Its what drove us to throw some hard earned at RRS, I "chose" to speculate/invest in RRS
From Goldbug Letter:
A Shot at the Next Middle East Over the past decades, the word oil has grown to become more or less synonymous with the Middle East. Not many associate the black gold with Africa. Even fewer know that the two used to be one and the same. Geologically speaking, that is. It so happens that The Gulf of Eden was created when the plates holding the Middle East and Africa moved apart and water flowed in, separating Yemen, where explorers have made some of the nicest oil discoveries in the world from . . . Somalia.
More precisely, straight across the water from Yemen is an autonomous part of Somalia called Puntland. Those who have surveyed Puntland have concluded that the geological area in Yemen where all those high-producing oil basins are located was simply split in the middle when the continents decided to go separate ways. Some even go as far as saying this is the same type of geology as Saudi Arabia, which holds the largest oil wells in the world. My favorite oil stock is one whose legendary management not long ago had the exquisite opportunity to pick and chose – they literally circled the basins in Puntland they wanted. As long as they spend $50 million on these properties over the coming four years, they gain an 80% interest in everything developed.
Why? How is this possible? Where is the competition? All relevant questions. The answer is that most people are too concerned about political risk to operate in this turbulent region of the world. Yes, most of Somalia is still in a state of chaos. But Puntland, where these oil basins are located, has a democratically elected president and declares itself an autonomous region of Somalia. No significant conflicts have been reported from the area during the past two years, and they have signed a production agreement with our company. So while this certainly isn’t an investment suitable for the weak hearted, or for those prone to anxiety or sleeplessness, I can’t help but thinking that I would be crazy if I passed on this one. Who wouldn’t want a shot at the next Middle East? Especially with the people running this company being as famous in the industry as Angelina Jolie is in showbiz. This could be a second chance to get in early on an emporium. The Microsoft or Qualcomm of oil stocks. Yes, if something goes wrong along the way I could lose just about every dime I put into it. But if things happen according to plan, this company will go from an insignificant junior oil stock to a multi billion dollar enterprise.
RRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
