eagleford One of the fracking stocks that I particularly like is Terrace Energy (CVE). It just finished a capital raise, so it is cashed up. It controls a huge acreage at Eagle Ford. Its partner is Royal Dutch Shell Plc (RDS.A). 2014 is a very important for year for Terrace, as it is clearly an attractive takeover target for Shell. For one thing, Terrace is experimenting with different fracking methods to make these wells profitable, something Shell didn't do on its own. The initial data are very promising. If the trend continues, Terrace will be an easy takeover target for Shell.
TER: How is Terrace improving the fracking technology?
CL: The company is fracking one of the largest virgin lands in the Eagle Ford acreage with propane gas. So far, the results have been extremely encouraging.
TER: Does that mean that it pumps propane into the fracture instead of water and chemicals?
CL: Exactly. It pumps propane. It's a new technology.