Oil and Gas SmallCap Report
Tradestar Corporation
Trading Symbol. TIRR
Increasing domestic consumption and uncertainty over foreign oil
supplies has driven oil prices to nearly 50 USD a barrel, and
created a boom for domestic oil exploration and production. With
rapidly expanding interest in domestic production , US oil and gas
stocks have seen huge and sustained gains. We have seen a number of
domestic smallcap oil plays, such as ABP, BEXP, CRZO, NFX, and THX,
witness average 2 year appreciations of 115%. A little known
Arkansas-based company, Tradestar Corporation, represents one of the
new entrants into domestic oil exploration and production. With a
balanced portfolio of oil and gas properties, an aggressive
acquisition campaign, experienced management team, and application
of cutting edge E and P technologies, do you think TIRR could be the
next breakout stock in your investment portfolio?
Tradestar Corporation TIRR
Currently Trading At 0.75
Estimated Shares Out. 34,100,000
Approximate Float. 1,500,000
Market Capitalization. 25,600,000
Industry P and E. 16x
With oil and natural gas prices sitting near 10 year highs, North
American oil and gas companies are generating exceptionally strong
results. With increased consumption and reliance on foreign imports
driving crude to nearly 50 USD per barrel, the resulting US energy
situation is the most serous domestic energy crisis since the oil
embargo of the 1970s. With more than 57% of US oil coming from
foreign imports, US crude inventories are likely to remain at low
levels given anemic production from Venezuela and Nigeria,
continuing uncertainty over Iraqi wells, and production caps from
OPEC. On the natural gas front, supply continues to remain tight to
increasing demand, with shrinking relative US production. These
international supply issues are increasingly driving a renewed trend
towards domestic exploration and production operations, New
developments in the petroleum industry are beginning to play out in
terms of discovery of new reserves and more efficient production of
existing reserves, with the increased use of technologies such as 3D
seismic making new exploration more affordable and effective, and
with use of secondary and tertiary recovery processes to recover the
more than 60% of oil left in ground with primary production
techniques.
Tradestar Corporation is an emerging independent oil and gas
company, engaged in the exploration, development, and exploitation
of on-shore oil and natural gas opportunities in proven producing
areas of the United States, including Oklahoma, Texas, and
Louisiana. The Company intends to utilize advanced oilfield
surveying and extraction technologies, such as 3D seismic, lateral
drilling, and enhanced oil recovery, to identify, acquire, and
exploit bypassed and overlooked reserves which can be rapidly
exploited without significant risk and capital expenditure. The
Company intends to capitalize on both of the major trends in
domestic oil and gas E and P operations, carefully screening and
selecting properties for maximum potential of overlooked and
bypassed production, and using advanced production technologies to
minimize risks. Under the guidance of a management team experienced
in oil and gas exploration and production, Tradestar is developing
critical strategic relationships with oil industry partners and is
beginning an aggressive acquisition strategy, targeting a number of
highly promising prospects throughout the United States. With a
number of major projects in the acquisition pipeline, we believe
that TIRR could present a unique investment in the domestic oil and
gas boom.
Aggressive investors looking for above average return potential on a
portion of their investment capital might give TIRR serious
consideration. Management of the Company, headed by CEO Tom
Feimster, are highly talented and experienced in the oil and gas
industry, and posses a wealth of technical expertise and knowledge.
We believe that TIRR has developed a viable and highly promising
acquisition strategy, backed by its commitment to the use of new
oilfield technologies and focus on exploiting proven producing
properties, which could enable the Company to develop revenue
streams. Investors at current trading levels may be rewarded over
the short term and beyond if TIRR’s business plan is executed.
A Few Reasons to Consider Adding TIRR to Your Investment Portfolio.
The outlook for oil and gas stocks is extremely positive with prices
at historic levels and continued demand stimulating additional
exploration and production efforts among domestic producers. While
it seems unlikely that prices will remain at their current levels,
the long term outlook for both demand and higher prices is
unparalleled in recent history. With current market conditions,
domestic E and P companies are experiencing a huge run up in prices
as they seek to exploit North America’s significant oil and natural
gas resource base with new exploration techniques and drilling
technologies. Through its goal of dual positioning in high growth
oil and natural gas markets, we believe that TIRR may be situated to
benefit from these favorable market conditions and could see
significant appreciation of its share price over the near term
period.
With its operations in the exploration and production of natural gas
properties, TIRR is attempting to position the company to benefit
from the US natural gas boom. As US demand for natural gas is
increasing, domestic production is becoming strained with many long
term prime producing areas reaching the point of depletion. By 2020,
US consumption of natural gas, driven by the expansion of gas fired
electric generation facilities, is expected to reach 37 trillion
cubic feet from approximately 23 Tcf currently. Natural gas prices
on the spot market have nearly doubled from less than 2 years ago,
and are currently testing the 6 USD per million British thermal
units, Btu, price threshold, with increases to 8 TO 9 USD levels
likely over the winter months. With US demand exceeding production
of roughly 18 to 19 Tcf per year, approximately 14% of US natural
gas needs are already being imported from Canada. With natural gas
impossible to transport across oceans, with the exception of LNG,
which represents a small fraction of overall natural gas
consumption, this has created a tremendous potential for domestic E
and P firms.
Tradestar is in the process of acquiring a balanced portfolio of
producing oil and gas properties onshore in the Gulf coast and
Oklahoma, which could improve its asset base, revenue, and earnings
outlook over the near term period. TIRR has entered into a letter of
intent to acquire two properties in the heavily producing Arkoma
Basin region of Oklahoma, one of the most prolific natural gas
producing areas in North America with estimated reserves of 30 Tcf.
The Company has also proposed a JV project in the dynamic Barnett
Shale natural gas play in Central Texas, the largest producing gas
field in Texas with estimated reserves of more than 10 Tcf. TIRR has
additionally acquired a 260 acre property in Karnes County, Texas a
mature producing area which can provide new resources due to
improvements in drilling technology and production techniques.
TIRR is developing a business model centered on pursuit of a
balanced development and exploration strategy and portfolio, and the
use of advanced oilfield survey and recovery technologies, which
could significantly improve production efforts at acquired
properties. Tradestar seeks to acquire bypassed and overlooked
reserves in proven producing areas, and to develop working interests
in undercapitalized and under-producing projects. TIRR intends to
capitalize and maximize on already developed drilling and
exploration projects with lower cost initiatives that have a high
degree of success including infield drilling, drilling of multiple
wells onto an existing leasehold, development of behind pipe
reserves, development of shallower pay zones above the deepest
productive zone on established wells, secondary and EOR recovery
techniques, lateral drilling, and the use of other advanced
completion and production techniques. Tradestar also plans to pursue
acquisition for higher risk, higher reward E and P prospects,
utilizing advanced data analysis to reprocess older 2D seismic data
with 3D seismic and correlating this seismic, gravity, geochemical
and geologic data with existing well logs to significantly mitigate
the expense and risk traditionally associated with new E and P
projects.
If you think TIRR is a good investment and may go higher, you may
not want to wait until its too late. Many of these stocks have
really been performing for investors lately.
Have a great day and good luck in all your trading!
This publication is an independent publication with the goal of
giving investors the necessary knowledge to make rational and
profitable investment decisions. Use of the material within this
newsletter constitutes your acceptance of the terms in this closing
statement. This publication does not provide an analysis of the
Companys financial position and is not an solicitation to purchase
or sell securities Investing in securities is speculative and
carries risk. It is advisable that any investment should be made
after consulting with your investment expert and after reviewing the
financial statements of the company. The information in this report
is believed to be reliable, but its accuracy cannot be assured. Past
performance does not insure similar future results. This is not
purported to be a complete and thorough analysis of the featured
company and reccomends a complete review of the Company's regulatory
filings at secgov The information herein contains future looking
statements and information within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, including statements regarding expected continual
growth of the featured company. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, goals, assumptions or
future events or performance are not statements of historical fact
and may be future looking statements. Future looking statements are
based on expectations, estimates and projections at the time the
statements are made that involve a number of risks and uncertainties
which could cause actual results or events to differ materially from
those presently anticipated. Future looking statements in this
action may be identified through the use of words such as projects,
foresee, expects, will, anticipates, estimates, believes,
understands, or that by statements indicating certain actions may,
could, or might occur. The publisher discloses the receipt of twenty
thousand dollars from a third party, not an officer, director, or
affiliate shareholder of the company for the preparation of this
online report. Be aware of an inherent conflict of interest
resulting from such compensation due to the fact that this is a paid
publication. All factual information in this report was gathered
from public sources, including but not limited to Company Web sites,
SEC filings and Company Press Releases. This information is believed
to be reliable but can make no absolute certainty as to its accuracy
or completeness. As with many microcap stocks, todays company has
additional risk factors worth noting. Those factors may include an
accumulated deficit since its inception, a negative net worth,
reliance on loans from officers, directors and a majority
shareholder to pay expenses, nominal cash and the need to raise
capital. The company may have a going concern opinion from its
auditor.
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