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Canadian Company Spotlight
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Stealth Energy Inc. Website:
Click Here |
Information As Of
June 1, 2010 |
| Exchange:
CNSX |
Market Cap:
$9.0 Million |
| Outstanding Shares:
45.1
Million |
52 Low / High:
$0.05
/ $0.24 |
|
Price
June 1,
2010:
$0.20 |
SLH Stock Quote and News:
Click Here |
"In 2008,
the United States produced 10% of the world’s petroleum and
consumed 23%. The U.S. was trying to close the reliance gap by
increasing offshore drilling, but with the Gulf of Mexico Oil
Spill that has turned out to be not only an environmental
nightmare, but a political and social problem, as such, the
U.S. government is taking a second hard look at offshore
drilling and is limiting expansion."
Overview
Stealth Energy Inc. was incorporated in
February 2006 with the objective of oil & gas exploration,
development and production. The Company intends to develop its
own properties and acquire oil and gas properties primarily in
the States of Montana and Wyoming, USA. Stealth has already
acquired leases in both states and is systematically
continuing to acquire gas leases.
Investment
Highlights
-
Crude Prices Expected To Rise. Crude oil prices
may soon rise to $100 a barrel due to increasing costs of
exploration and production, and businesses should be
prepared for higher energy prices than what they were used
to in the last 20 years, Reliance Industries chairman Mukesh
Ambani said on May 14th.
-
Significant Oil Reserves. Based on the engineering
reports, which incidentally, are not '51,101", the Company
is sitting on 7.5 Million barrels of recoverable reserves,
which on its own justifies a market cap for SLH of way more
than roughly $12 Million, which it is currently at. This Oil
is high gravity, sweet crude, which is highly sought after.
-
Current Foreign Energy Dependence Problem In U.S.
The United States consumed 19.5 million barrels per day
(MMbd) of petroleum products during 2008 making that country
the world’s largest petroleum consumer. The United States
was third in crude oil production at 4.9 MMbd. To highlight
the importance of U.S. domestic energy needs, In 2008, the
United States produced 10% of the world’s petroleum and
consumed 23%.
-
Significant land Holdings With Interest In Further
Acquisitions. This junior Oil & Gas
company is not only holding onto
50,000 net acres of prime Oil & Gas real estate but are
still on the hunt for further acquisitions. This Company is
soon to be cash flow positive and if need be, will soon be
able to grow purely on income derived from their Oil & Gas
revenues.
-
Rapid Growth. The Company has developing and
producing properties in Montana and Wyoming, with their
initial focus on Montana. The Company was founded in 2006
and in the few short years has built a portfolio of over
50,000 net acres of land in the above mentioned states.
-
Potential For Major Gas Find. In Montana, the
Company's neighbouring properties have produced in excess of
20 billion of cubic feet of gas. Also, Lake Basin, which is
part of what the Company owns has also produced several
billion cubic feet of gas.
Profile
Crude oil prices may
soon rise to $100 a barrel due to increasing costs of
exploration and production, and businesses should be prepared
for higher energy prices than what they were used to in the
last 20 years, Reliance Industries chairman Mukesh Ambani said
on May 14th.
"Experts talk of resilient oil growth, sluggish refining
growth and higher marginal costs for new discoveries and
production. All these factors are no doubt true, but I believe
that the petrochemical industry will have to keep reinventing
itself in response and prepare itself for a higher energy
price than what it has been used to in the last two decades,"
Ambani said, addressing the 10th Asia Petrochemical Industry
Conference here.
"$80-$100 is a norm in this ever changing global dynamics and
we have to reset our thinking rather than hoping that oil
prices will go back, and energy prices and feedstock prices
will go back to what we were used to in the last two decades,"
he added.
But putting aside the reasons for the potential rise in crude,
one of the major concerns for Americans is the ongoing
reliance that the Country has on foreign energy. The United
States consumed 19.5 million barrels per day (MMbd) of
petroleum products during 2008 making that country the world’s
largest petroleum consumer. The United States was third in
crude oil production at 4.9 MMbd. To highlight the importance
of U.S. domestic energy needs, In 2008, the United States
produced 10% of the world’s petroleum and consumed 23%. The
U.S. was trying to close the reliance gap by increasing
offshore drilling, but with the Gulf of Mexico Oil Spill that
has turned out to be not only an environmental nightmare, but
a political and social problem, as such, the U.S. government
is taking a second hard look at offshore drilling and is
limiting expansion.
With that being said, there is an even greater demand for
domestic Oil & Gas from conventional drilling methods, and one
Canadian Company, with a U.S. subsidiary has recently stepped
up to the plate with some substantial Oil & Gas Properties
currently in Wyoming and Montana.
This junior Oil & Gas Company is not only holding onto 50,000
net acres of prime Oil & Gas real estate but is still on the
hunt for further acquisitions. This Company is soon to be cash
flow positive and if need be, will soon be able to grow purely
on income derived from their Oil & Gas revenues. They have a
seasoned and senior management team and have properties that
are not only in production, but are in close proximity to past
significant Oil & Gas finds.
While one may think this Company is highly priced based on
their strong fundamental prospects, the stock price tells the
story of an undiscovered Oil & Gas Company that has not had
the spotlight beamed on them, until now. Stealth Energy Inc.
(CNSX:SLH) was incorporated in February 2006 with the
objective of oil & gas exploration, development and
production.
The Company intends to develop its own properties and acquire
oil and gas properties primarily in the States of Montana and
Wyoming, USA. Stealth has already acquired leases in both
states and is systematically continuing to acquire gas leases.
A wholly owned Montana subsidiary, Stealth Energy USA Inc. has
been incorporated to hold the company’s oil & gas properties.
The Company trades on the Canadian National Stock Exchange
(CNSX), Canada's newest stock exchange and in Frankfurt under
the symbol "S16". This is the first time that
AllPennyStocks.com has spotlighted a Company trading on the
CNSX, which is why we have included some information on the
exchange as well.
CNSX is an innovative new stock exchange for trading the
securities of public companies. CNSX’s unique market model
matches enhanced disclosure and streamlined issuer regulation
with leading edge technology and comprehensive regulatory
oversight to meet the needs and characteristics of public
companies, their investors and investment dealers.
Public companies now have a stock exchange designed to
maximize liquidity, while investor confidence is strengthened
through enhanced disclosure and the highest possible standards
of regulatory oversight. For more information on the CNSX,
investors are encouraged to view the exchanges website located
at www.cnsx.ca.
Even with the Company
currently trading on the CNSX, there are plans to migrate to a
more senior exchange, however exact timing and plans have not
been formally announced as of yet.
As was mentioned
previously, The Company has developing and producing
properties in Montana and Wyoming, with their initial focus on
Montana. The Company was founded in 2006 and in the few short
years has built a portfolio of over 50,000 net acres of land
in the above mentioned states.
The Company's prime
focus property in Wyoming is their Teapot Dome Oil Field
located approximately 25 miles North and slightly East of
Casper, Wyoming and 8 miles Southeast of Midwest, Wyoming. Oil
production began in the 1920’s and due to the Teapot scandal,
production really only became serious some 30 years later.
This area is known as The Powder River Basin, which occupies
most of the Northeastern quarter of Wyoming and part of
Southeastern Montana.
Presently the field is producing on
primary recovery and it is estimated that less than 20% of the
original oil in place from the Shannon Sandstone and less than
10% of the Shale Oil has been accessed. Based on the
engineering reports, which incidentally, are not '51,101", the
Company is sitting on 7.5 Million barrels of recoverable
reserves, which on its own justifies a market cap for SLH of
way more than roughly $12 Million, which it is currently at.
This Oil is high gravity, sweet crude, which is highly sought
after.
Meanwhile in Montana, the Company's neighbouring properties
have produced in excess of 20 billion of cubic feet of gas.
Also, Lake Basin, which is part of what the Company owns has
also produced several billion cubic feet of gas. To get this
huge gas reserve flowing, the Company is currently building a
6 inch gas pipeline which is going to be 12 miles in length to
the main sales pipeline. This hook-up is expected shortly as
10 out of the 12 miles have already been completed, at which
time the Company will be in gas production mode. This is very
significant for the Company because it means that they have
the revenues to drill gas wells for the next decade, and with
the gas wells being shallow, their drilling is extremely
economical.
As if the Company's
fundamentals weren't strong enough, they just announced after
the bell today that they have
now scheduled the start of their
summer drilling program for 1 July 2010. Initially the first
phase will comprise of 3 wells in the Sumatra Oil Field, with
the main target of the Tyler formation at approximately 4,500
feet.
John Campbell, CEO and President of Stealth
Energy stated “The weather
has finally allowed us to mobilize and the equipment we will
be using is the Ellenberg Rig #11. As the Sumatra, in the
neighbouring leases, has in the past been a prodigious
producer of in excess of 100 million barrels, we are looking
forward to the results with interest”.
The Company is already
in place with a significant land package in two U.S. states,
they are producing oil and soon will be a gas producer once
their pipeline is fully setup. If this summer drilling program
is even slightly optimistic for the Company, it could mean a
significant oil find that could transition Stealth Energy from
a junior oil & gas player to a major producer.
Looking at the stock
from a technical perspective, the stock looks like it could be
on the cusp of another uptrend. Looking at specific technical
indicators, the MACD seems to have recently performed a
centerline crossover. A bullish centerline crossover occurs
when MACD moves above the zero line to turn positive. This
happens when the 12-day EMA of the underlying security moves
above the 26-day EMA. The RSI and Stochastics are also both
showing the emergence of an uptrend that could only intensify
as a result of the press release that was just announced.
Looking at our latest
video chart prepared by 123LearnToTrade.com, a strong support
and resistance channel has recently formed. According to the
video chart, $0.14 seems to be a strong support level and
$0.24 cents looks to be the resistance level. With the recent
run-up in volume and price, as well as the news announced just
after the bell, there could still be significant room for
upward movement, especially if the resistance level is broken.
To view the technical analysis video chart on SLH with further
insight on what can be expected from a technical standpoint,
click here.
We always encourage
investors to place stop-losses in case an investment doesn't
go the way they want, so depending on risk tolerance, stop
losses around the above mentioned level is encouraged. Also,
as we always mention to all our investors, these are only our
interpretations of SLH`s stock chart and as always, we
encourage all investors to do their own due diligence and
consult with a financial advisor prior to making any
investment decisions.
The fundamentals for Stealth Energy Inc.
(CNSX:SLH) are quite strong and the technicals are also
showing promise. This Company, trading at a market cap of
under $10 Million could soon be on the radar of many other
investors as news spreads on their significant property
holdings and future revenue producing possibilities. For these
reasons and others, AllPennyStocks.com decided to spotlight
the Company as their latest Canadian Spotlight, and investors
are encouraged to do their own due diligence on the Company.
Company
Properties
Montana
Stealth is currently leasing exploration properties in Central
Montana. The Company has accumulated leases through the Bureau
of Land Management (BLM) auctions and through negotiations
with owners of privately owned leases.
To date The Company owns approximately 35,000 acres and has
started developing these properties.
Wyoming
The East Teapot Dome Oil Field is located approximately 25
miles North and slightly East of Casper, Wyoming and 8 miles
Southeast of Midwest, Wyoming. Oil production began in the
1920’s and due to the Teapot scandal, production really only
became serious some 30 years later. This area is known as The
Powder River Basin, which occupies most of the Northeastern
quarter of Wyoming and part of Southeastern Montana.
The field is located on the infamous Teapot Dome; the home of
the Department of Energy’s Naval Petroleum Reserve #3 and the
Rocky Mountain Oilfield Test Center and consists of 1,160
acres bordering the Naval Petroleum Reserve #3 on the East and
40 acres on the West. On the property are 50 fully equipped
Shannon, Steele & Niobrara Shale oil wells with 6 Tank
batteries including supporting infrastructure. Presently the
field is producing nominally on primary recovery and it is
estimated that less than 10% of the original oil in place from
the Shannon Sandstone and less than 2% of the Shale Oil has
been accessed. Based upon recent engineering reports,
substantial recoverable oil reserves are expected.
Recent News and
Press Releases
Summer Drilling Program 6/1/2010
Oil Lease Acquisition 5/21/2010
Private Placement Extension 4/22/2010
Private Placement Completed 4/21/2010
Private Placement Increase 3/31/2010
Private Placement 3/22/2010
Stealth Launches Investor Conference Calls 3/11/2010
WATER AND CO2 FLOOD AT TEAPOT 3/4/2010
Stealth Now Poised 3/1/2010
Management Team
Robert Gardner Q.C. - Chairman of
the Board
Mr. Gardner has served on the boards of several public mining
companies and specializes in acquisitions. He was educated at
Cambridge University and is called to the Bars of British
Columbia, England and Wales.
John Campbell - CEO / President
Has been involved in the O&G exploration in the private sector
for the past 5 years with particular emphasis in the states of
Wyoming and Montana.
R. Stuart Angus - Director
Mr. Angus is an independent senior business adviser to the
mining industry. He was most recently Managing Director -
Mergers and Acquisitions for Endeavour Financial. Prior to
joining Endeavour Financial, he was a partner at the Canadian
law firm Fasken Martineau DuMoulin and headed that firm's
global mining practice. For over 25 years, Mr. Angus has
focused on significant international exploration, development
and mining ventures, and all aspects of their structuring and
finance. Mr. Angus is also presently a director of Nevsun
Resources Ltd. and Plutonic Power Corp.
Brian Smith Q.C. - Director
Mr. Smith is a practicing lawyer with Gowlings, Lefleur,
Henderson, LLP of Toronto, Ontario. He is the past Minister of
Energy and Mines, past Education Minister and past Attorney
General of the Province of British Columbia, Canada, and is
also past Chairman of BC Hydro and past Chairman of Canadian
National Railways.
Michael Farley Ph.D. - Director
Investment banker based out of Geneva, Switzerland and
Montreal, Canada. Was a diplomat for the Canadian Government
prior to involvement in both the private and public financial
sectors.
Yuling Zhou - Director
Ms. Zhou graduated with a Master of Economics degree in Wuhan
University, China in 1999. After graduation, she worked at Hu
Bei Securities Company as a securities analyst and became a
director in 2000. Between 2000 and 2004 she was a director of
Yin He Securities Company in Shenzhen City, China,
specializing in corporate finance. Since 2003 she has
continued to work with senior financial institutions in cities
in mainland China and Hong Kong.
David Yue - Director
Mr. Yue is an international financier residing in Canada,
specializing in funding start-up and junior companies in Hong
Kong and North America. During the last 20 years in Canada, he
has been active with his own private enterprises in sizeable
real estate and infrastructure developments in China and
Canada. In addition, he has been the founder and director of
several TSE listed resource companies.
Contacts
Stealth Energy Inc.
1328 - 885 W Georgia St, Vancouver, BC, V6C 3G1
Phone: (604) 669-7831
Fax: (604) 669-7885
Website:
http://www.stealthenergy.ca
Email:
info@stealthenergy.ca
SEDAR Filings
SLH filings with SEDAR can be found
here. All
Fillings are current and the Company is fully reporting.
FORWARD
LOOKING STATEMENTS
This report includes
forward-looking statements that reflect Stealth Energy Inc. current expectations about its future results,
performance, prospects and opportunities. Stealth Energy Inc. has tried to identify these forward-looking statements
by using words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to a
number of risks, uncertainties and other factors that could
cause Stealth Energy Inc.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these forward-looking
statements. These risks, uncertainties and other factors
include, without limitation, the Company's growth expectations
and ongoing funding requirements, and specifically, the
Company's growth prospects with scalable customers, and those
outlined above. Other risks include the Company's limited
operating history, the Company's history of operating losses,
consumers' acceptance, the Company's use of licensed
technologies, risk of increased competition, the potential
need for additional financing, the terms and conditions of any
financing that is consummated, the limited trading market for
the Company's securities, the possible volatility of the
Company's stock price, the concentration of ownership, and the
potential fluctuation in the Company's operating results.
Disclaimer
AllPennyStocks.com feature
stock reports are intended to be stock ideas, NOT
recommendations. Please do your own research before investing.
It is crucial that you at least look at current SEC filings
and read the latest press releases. Information contained in
this report was extracted from current documents filed with
the SEC, the company web site and other publicly available
sources deemed reliable. For more information see our
disclaimer section, a link of which can be found on our web
site. This document contains forward-looking statements,
particularly as related to the business plans of the Company,
within the meaning of Section 27A of the Securities Act of
1933 and Sections 21E of the Securities Exchange Act of 1934,
and are subject to the safe harbor created by these sections.
Actual results may differ materially from the Company's
expectations and estimates. This is an advertisement for
Stealth Energy Inc. The purpose of this advertisement,
like any advertising, is to provide coverage and awareness for
the company. The information provided in this advertisement is
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entity in any jurisdiction or country where such distribution
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