After months and months of higher oil and gas prices dominating the headlines, we decided we had better profile an up-and-coming small cap energy company for our subscribers.
We have located them! Pinnacle Energy Corporation (OTCBB: PENC) initially caught our attention when its stock gained nearly 74% on volume of more than 6,000,000 shares in just two trading sessions the end of August beginning of September. The stock hit a high of $1.40 and has settled back into and traded in the $1.17 – 1.31 range.
What we like about PENC is the fact that after such an explosive run ($0.70 to $1.40), NOT ONLY has the stock has been able to hold the high majority of its gains, it appears poised for another run!
Essential Data
Ticker: PENC
Price: $1.21
52 Week Range: $.70 – $1.40
Market Cap: 19.98m
Shares Out: 15.86m
Short Term Target: $2.50 – $3.00
The junior oil & gas exploration company’s current portfolio is highlighted by:
1. A nearly 45% working interest and 35.6% net revenue interest in a 40 acre oil & gas lease located in Lincoln County, Oklahoma that was producing roughly 30 MCF of gas per day for Pinnacle as of August 31, 2008; and
2. Working interests in 6 oil & gas wells located in Pawnee County, Oklahoma. According to the company’s CEO, the property is a winner. In a press release dated 8/29/08, Nolan Weir stated that “Current production and reserve reports suggest that the Glencoe field in Pawnee County, Oklahoma has excellent long-term development potential, We look forward to developing the field to its fullest potential in the very near future.”
With natural gas currently fetching approximately $7.65 per MCF and oil roughly $92 per barrel; Pinnacle is building assets in a red hot market, despite the fact that oil prices have been dipping as of late. The company is now pursuing financing that will facilitate its acquisition of additional energy-related properties and posses current assets capable of generating approximately $839,135 in revenues after one full year of operations at current levels.
All things considered, we are compelled by Pinnacle’s business plan and will continue to bring you updates on the company.
Sapphire Energy Attracts Bill Gate’s $$
In the private sector, Sapphire Energy has developed a very innovative clean crude oil formulation derived from a combination of CO2, sunlight, algae, non-arable land and non-potable water. In this day and age, companies like Sapphire offer a very attractive value proposition to consumers and fuel producers worldwide: Fuel from waste and infinitely available natural resources.
Sapphire Energy has been soliciting funds from private investors with great success over the past several months and hit the jackpot recently when it learned that Bill Gate’s Investment Firm - Cascades Investments LLC will join their already elite group of investors.The company has been able to raise more than $100 million to date, providing them with the necessary financial resources to move forward with plans to construct a 10,000-barrel-a-day algae-derived oil facility.
Sapphire Energy is eager to get under way and confident that they have the solution for tomorrow, today. On a very positive note, the byproduct from Sapphire’s process is ASTM compliant and does not require the use of food crops or agriculture land, which has been a key area of debate for the energy industry as of late. Lastly, the renewable green fuel formulation is carbon neutral and can potentially help eliminate our country’s dependence on foreign fuel. Sounds like a winner to me!
Although Sapphire Energy is not publicly traded, the company has a lot to offer the world as we persevere through hard economic times and the hunt goes on for an environmental friendly solution to our mounting energy crisis. We’ll be watching the company closely going forward as their future technological advances will surely impact the public marketplace in some capacity.
Bill Gates Goes For Algae, Invests in Biofuel Maker Sapphire Energy
Sapphire Energy will be on our radar as the company pushes forward with plans to revolutionize the energy sector.
We rarely make such bold statements as the following -
PENC is a company that we STRONGLY suggest adding to the speculative portion of your portfolio. It is very liquid with its impressive daily volume, has huge potential to expand its current energy-related property portfolio and appears ready for another burst which we believe to be into the $2.50 – $3.00 range in a matter of months if not weeks.
