Warrior Energy (WEN.V)Looking good so far - whats the news in the pipeline.
And anybody know of another discussion board about WEN - cant find one anywhere.
Thanks in Advance
Warrior Energy (WEN.V)
This is a new natural gas company we're keeping an eye on with a focus on large undervalued assets in the Green River Basin (Wyoming).
We can tell you that the energy companies are drilling and applying for drilling permits like there's no tomorrow.
And Warrior Energy is no different. It's buying land on the cheap with expectations for considerable upside. They just paid $8 million for producing property with active development.
Warrior's current project - called Strike - consists of 3000 net acres with 11 producing wells that are already kicking off cash flow.
And the stock only trades at a scant sub-3 with long-term $10 potential upside.
Better yet, the future doesn't look too shabby.
Over the next two years they hope to demonstrate year over year growth of proven reserves, production and cash flow through acquisitions and development to justify $500 million in asset values.
The investment firm Macquarie gave Warrior a $50 million line of credit, which is huge for an early-stage energy company... and a testament to the company's game plan to increase production within a short period of time.
Again, this is a $10 stock masquerading at $3.
Companies already in the Rockies area don't seem to have a growth problem.
- Berry Petroleum bought Rockies assets on January 27, 2006, and watched its stock soar from $33 to $55 inside two years.
- Black Hills Corporation bought Rockies assets on March 9, 2006, only to watch its stock roar from $33 to $44.
- MDU Resources bought assets on May 1, 2006. Its stock ran from a $23 low to more than $32.
- Marathon Oil bought in July 2006, and watched its stock skyrocket from $35 to $65.
- EXCO Resources ran from $16 to $24 after buying Rockies assets on September 30, 2006.
- Encore Acquisition bought assets on January 17 and 25, 2007. Its stock ran from $25 to $65.
- Forest Oil ran from $45 to $66 after buying in January 2008. And Continental Resources jumped from $25 to more than $61 after buying Rockies assets on January 14, 2008.
The potential for Warrior Energy (WEN.V) to run significantly off lows is there. They just bought assets for only $8 millio! n. With domestic oil and gas exploration experiencing a renaissance in the U.S., we expect small emerging plays like Warrior to give early investors exceptional returns.