Do you know who Mark Jarvis is? CEO of Giga Metals. But his biggest success story was Ultra Petroleum in oil/gas back in the 1990's/early 2000's. He took a board position and became the corporate finance exec for them, in charge of all financing's and promotion for the stock.
They took it from 30 cents to $150 (!) per share listed on the NYSE and discovered over 3TCF of proven reserves in Wyoming! Now, he approached me after my conference last October about his next oil/gas endeavor called Shoal Point Energy (SHP). It took some months to put things into place but now it's ready to rock.
Long story short, this is a tightly held deal that should pretty easily climb much higher as the story rolls out to investors/brokers etc. Previous management plowed $30 million into a HUGE oil play offshore Newfoundland. However, the political makeup there has that project shelved indefinitely (could become a catalyst down the line if it ever frees up).
So Mark rolled it back 250 for 1 and back stopped a rights offering about a year ago. He is working on a potentially very big Wyoming play again, but will need some extra time to put the pieces into place regarding the land/partners etc. So, for now he is rolling out a nice bread and butter, low risk strategy in Kansas with a partner.
The guys from Shelby (their partner there) have been very successful since the early 2000's, rolling up production with their own money. In 2008, they sold off production for $53M. Since then they have continued to have success at 5 different areas around Kansas with predictable and attractive cash flow/ROI's.
70% of their drilling turns into profitable wells while 30% are dry holes. Returns are very attractive at current oil prices and most, if not all, of the upfront drilling costs are recouped within the first 60 days of production.
Mark will drill 3 wells this season and build up cash flows while working on putting the Wyoming project into play. Interestingly, this will be the first oil deal he will be doing since Ultra and I'm excited to see how his network responds, as he made a lot of people a lot of money in Ultra during that run!
I'll actually be rolling this idea out to premium Gold Investment Letter, GIL, and Elite Investments investor lists (over 15,000 subscribers) over the coming weeks and expect this to be 25-40 cents by year end. Adding up to .12 today/tomorrow is a cheap buy up to price for now. Many Canadian investors at Gold Investment Letter made a lot of money on Ultra Petroleum back in the day. So, I expect a significant reaction in the market when I share SHP with them soon.
BGL readers may have a chance to buy a chunk now, sell half at a double soon, and let the rest ride for free.