Ron Struthers on BPIBelow is Ron Struthers' latest update on BPI, issued on 4/5. I highly recommend his resource stock newsletter. His web site is under construction but you can call him at 519-374-9332.
This company needs to get a new name, more catchy. I say they change it to CBM Resources. The symbol "CBM" is now available since Cambridge Ventures changed their name and symbol.
Ron Struthers:
"BPI Industries BPR on CDNX Recent Price $2.50
Entry Price $0.49 Opinion - take profits over $3
BPR has hit new highs this week and was halted yesterday. It has taken a
while, but finally BPR has signed a five-year lease directly with
American Premier Underwriters/AFC Coal Properties (APU), the
leaseholder of its coalbed methane (CBM) project, located in the
Illinois basin.
BPI and MMI (each 50% partners) have signed a new five-year lease on
all acreage previously covered under the farmout agreement with APU
and Mid-Continent Methane, Inc. APU acquired these leases when they
purchased Penn Central Corp. out of bankruptcy, Penn Central
accumulated these rights over a number of years. BPI and MMI have
leased all of APU's rights related to oil, gas, coalbed methane gas,
methane gas and other hydrocarbons, except coal, in Williamson, Saline
and Franklin counties in Illinois as currently known or as may be
determined in the future.
The lease also grants the company and MMI subsurface rights to the
Springfield No. 5 and Herrin No. 6 coal seams which were
previously specifically excluded in the farmout agreement. These two
seams alone are expected to increase the overall coalbed methane
reserves for the project. The consideration paid for this five-year
lease was $275,000 (U.S.). There are no additional rental payments
required to be paid for the remainder of the lease. No royalty is
payable in the first 18 months of the lease unless royalties
generated from production exceed $275,000 (U.S.). After this period
a 15% royalty on production is payable to AFC Coal Properties,
Inc.
I have not suggested profits yet as I expect some higher prices once
some more news comes out on the advancemnt of the coalbed project. I
expect future news is going to flow much more quickly now that the
lease is finalized. We should soon see news of a more technical nature
on the potential of the project and development plans to bring it
into production. The stock was moving strongly before it was halted,
so it might go higher on this news of lease agreements. If the stock
moves over $3, we would be up over 500% so it would be prudent to sell
1/3 or 1/4 of your position to remove all seed capital and more."