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Wednesday, December 21, 2005

Stocks: New Buy from Wealth Daily (CCL:TSX)


New Buy from Wealth Daily
Tuesday, December 20th, 2005
Baltimore, MD * Jackson, WY * Missoula, MT

In this Issue...


* New Buy from Wealth Daily
* Buy Connacher at Current Levels
"Drunken Santas on a rampage in New Zealand, armed German robbers in
Santa disguises, a British St. Nick wanted for flashing, and a Swedish
vandal in a Santa outfit are giving the big man in red a bad name this
year."

-Reuters, December 20, 2005

_____

Dear Wealth Daily Reader,

I want you to sit down. Turn off the television. Switch off the radio.
Tell your significant other and the kids to leave the room.

I want your full attention.

For years I've been telling investors about the opportunities in energy.
Whether it was coalbed methane, natural gas or oil, I've been playing
them all with huge success.

Exactly a year ago, I launched the Pure Energy Report, an investment
service dedicated to energy stocks. I launched this new service because
I knew that energy was going to be one of the hottest markets ever.

In March of this year, I recommended two companies with significant
exposure to the Canadian oil sands region.

For the longest time, Alberta, home to the oil sands, was neglected as a
potential energy play because the cheap price of oil made tar sand
production economically infeasible. That has changed. It has changed
forever.

One of the 2 stocks I recommended in March was Connacher Oil and Gas
(CLL - TSX). We purchased it for $0.90 a share. Today it trades for
$3.75 a share.

I want to recommend Connacher in Wealth Daily as a way of getting you
access to one of the most lucrative oil regions in the world.

It's still early. Investing in the Canadian oil sands today is like
investing in Saudi Arabia in 1960.

Canadian oil sands stocks are going to run long and hard for the next 10
to 15 years. The gains will simply blow you away. You don't want to miss
out.

Below is my report on Connacher. Please take the time to read it. It'll
make you quite a bit of money.

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_____

Buy Connacher at Current Levels

Connacher is a Calgary-based oil and natural gas exploration and
production company.

The Company's principal asset is a 100 percent interest in 107 sections
of oil sands leases at its Great Divide oil sands project near Fort
McMurray, Alberta.

Now, for people who are in the know about oil sands, Alberta is the Park
Place and Boardwalk of oil sands property. And Connacher's oil sands
sections cover 68,480 acres. That's twice the size of San Francisco!

Connacher also maintains conventional production at Battrum, Tompkins,
and Steelman, Saskatchewan. The Company also owns 35 percent of and
manages Petrolifera Petroleum Limited, which has interests in Argentina
and Peru.

Now before you read the next sentence, I think you should focus your
eyes. Okay. Are you ready?

As it stands now, Connacher controls recoverable reserves of 311 million
barrels of oil!

These reserves have a current value of over $18.6 Billion dollars! Yeah,
that's Billion with a "B".

Connacher's reserves equates to about 3.34 barrels per share or, at $60
per barrel for oil, $200 per share!

But there's more.

Connacher just signed a monster deal to acquire another Alberta-based
company that's going to take their production to a whole new level.

But first, let me tell you more about Connacher's strategic operations.

Operations

Canadian Operations

Like I said, Connacher has four interests in Canada. These interests are
located in northeast Alberta and southern Saskatchewan.

Connacher's principal Canadian asset is its Great Divide oil sands
project, 50 miles southwest of Fort McMurray. The company has been
exploring this lease since 2004.

And based on the results of this exploration, Connacher expects the
Great Divide Oil Sands Project to produce 10,000 barrels of bitumen per
day for approximately 25 years!

Just at today's oil prices, Connacher's gross production value would be
worth $600,000 a day!

The further development of the Great Divide oil sands project will
incorporate multi-well production pads and horizontal wells, with
centralized steam generation, bitumen treating and produced water
recycling facilities.

The Company hopes to proceed with the construction of this project in
early 2006, following regulatory approvals.

Connacher estimates the Great Divide project area contains up to 180
million barrels of bitumen!!!

That means, with current prices, this reserve is worth $10.8 Billion.

Connacher plans to use the Steam Assisted Gravity Drainage (SAGD)
process to produce bitumen.

There are at least nine other projects in the province producing bitumen
from the McMurray formation using this same SAGD process.

SAGD typically involves drilling a pair of directional wells which are
horizontal for 600 to 800 meters at the base of the reservoir.

The production well is drilled near the base of the reservoir and the
injector is drilled five meters above it.

Steam is continuously injected through the upper well bore into the
reservoir and a steam chamber is formed to heat the formation and the
bitumen.

The heated bitumen drains into the lower horizontal well and is produced
to the surface.

Connacher is now in the process of finalizing the conceptual plant
designs and expects to open a new facility in early 2006.

On top of the Great Divide oil sands project, Connacher also maintains
conventional oil production at Battrum, Tompkins and Steelman,
Saskatchewan.

Check them out:

Battrum

* Core production of 825 bbl/d
* Multi-well drilling program based on 3D seismic results -
yielded 50% production growth in 2005 year-to-date
* Growth potential in the area
* Possible candidate for EOR (ASP flood)

Tompkins

* Large contiguous land spread
* Sensitive ecosystem
* Oil and natural gas in Upper Shaunavon
* Significant Working Interest of 60 to 100 percent

Steelman

* Light oil
* Undrilled spacing units
* Verticals could set up further horizontals
* Waterflood possibilities under review

The Canadian interests mentioned above would produce enough oil for any
company to remain profitable for many years.

But for Connacher, just being profitable isn't enough. Connacher wants
to swing for the fences. That's why they've also acquired some South
American interests as well.

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_____

South American Operations

Connacher created Petrolifera Petroleum Limited to hold foreign assets.

Petrolifera holds blocks in Argentina and two licenses in Peru.

Argentina

* 100 percent owned and operated
* Light oil and natural gas
* Only one exploratory well in 30 years
* On trend with major fields
* Recent 3D seismic over the blocks; nine drillable prospects
* Up to five wells in 2005, subject to rig availability

Peru
Petrolifera received a license over block 106 on July 12, 2005, and a
license over block 107 on September 1, 2005. Connacher owns 35 percent
of Petrolifera.

Maranon Block 106

* Comprises 8000 km2 (1,977,500 acres) - oil
* Located on basin hingeline along which most oil has been found
* Oil pipeline on Block
* Surrounds the Corrientes Field >200 MMBO(1)
* Area has excellent reservoirs and no seal problems
* Many of the reservoirs filled to spill point
* Block has access to good hydrocarbon charge
* Numerous prospects and leads in the Cretaceous
* Deep potential within the Paleozoic section - untested

Ucayali Block 107

* Large Block of approximately 13,000 km� (3,205,000 acres) -
natural gas, condensate, oil
* On trend with giant Camisea Field
* Existing seismic indicates Camisea-like structures on Block
* Undrilled, large mapped surface anticlines identified, may
contain giant accumulations
* Rashaya Norte - an Aguaytia Field (440 BCF, 20 MMBC(1))
look-alike
* Giant reserve and company-maker potential

Ok, now that you know a little more about Connacher's current
operations, let me tell you about Connacher's new baby, Luke Energy.

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_____

Luke Energy

Luke Energy is another Calgary-based oil and natural gas exploration and
production company.

Luke's operations are located in Alberta. Let me quickly run through
some of the highlights from each interest.

Marten Creek

* Production ~ 15 mmcfpd (2,500 boepd)
* Multi-zone shallow gas area; 1 to 2 bcf/section
* Land - 100% in 41,600 acres
* 12.5% to 70% in 5,120 acres
* Additional drilling program, Q1, 2006 Seal/Clear Prairie
* New gas discovery at Seal
* Cretaceous gas potential; depth 1,200 - 2,000 ft.
* Land - Seal - 88% in 6,400 acres
* Clear Prairie - 100% in 3,840 acres
* Option on 12,032 acres
* New drilling, Q1, 2006

Three Hills/Bashaw

* Production ~ 235 boepd (73% oil)
* Multi-zone - Ostracod & Nisku oil
* Pekisko gas
* Land - 97% in 10,400 acres
* Dev. drilling and waterflood potential, Q4, 2005 Gold
Creek/Karr/Latornell
* Cretaceous gas potential; 5,000 - 6,800 ft.
* Land 100% in 5,530 acres
* Additional prospective land
* New drilling in Q4, 2005 and Q1, 2006

Now, on a combined basis, Connacher could immediately have a production
base of approximately 3,500 boe/d consisting of approximately 15.7
mmcf/d of natural gas production and approximately 900 bbl/d of oil
production.

Recent reserves reports indicate that Luke Energy holds approximately
79.3 million boe, including 69.6 million probable recoverable barrels of
bitumen reserves at Connacher's Great Divide Pod One.

Assuming Pod One development is approved and the project comes on stream
at its application rate of 10,000 bbl/d and these volumes are combined
with the conventional production rate of 3,500 boe/d, a calculated
reserve life index of 16 years is indicated.

A further 38.7 million barrels of possible recoverable reserves have
also been assigned to Pod One by a recognized independent consultant.

So by my calculations, when Connacher completes its acquisition of Luke
Energy, the Company will have 429 million barrels of proved, probable,
and possible oil reserves!!!

At current crude prices these reserves would be worth over $25.7
billion!!! Or over $276 per share.

That's not bad for a company that's still trading under four bucks.

Before we wrap this thing up let me tell you about Connacher's
management team.

Senior Management

My Pure Energy subscribers know that I carefully scrutinize a company's
management team way before I recommend it as a buy.

The fact is, any company run by a group of bozos is destined to go belly
up.

Connacher's management is way above par. Here's just a little bit about
them.

Richard A. Gusella
President & Chief Executive Officer
Mr. Gusella has been the President, CEO and a director of Connacher
since May 2001. Prior thereto, he was the President of Gusella Oil
Investments Limited, a private oil and gas corporation, as well as the
Chairman & CEO of Carmanah Resources Limited, a public oil and gas
company listed on the Toronto Stock Exchange. Mr. Gusella was President
and Chief Executive Officer of Sceptre Resources Limited from 1979 to
1991 during which time the company grew from approximately 500 boe/d to
50,000 boe/d. He is a past chairman of IPAC prior to its combination
with CPA to form CAPP.

Peter D. Sametz
Executive Vice President & Chief Operating Officer
Mr. Sametz has approximately 25 years of experience in the oil industry.
He graduated with high distinction as an Engineer from Carleton
University in 1979 and has worked with large, intermediate and junior
companies, managing up to 40,000 boe/d of production. His industry
expertise has been further drawn upon for technical papers, lectures,
and domestic and international consulting services.

Richard R. Kines
Vice President, Finance & Chief Financial Officer
Mr. Kines holds a C.A. designation and has been with Connacher since
2002. He was appointed Chief Financial Officer in June, 2003. He has
over 25 years experience, in public practice, and with various oil and
gas and oil service companies.

Timothy J. O'rourke
Vice President, Oil Sands Operations
Mr. O'Rourke has extensive experience in oil and gas operations with a
number of companies, including Sceptre Resources Limited and Deer Creek
Energy Limited, where he was a founding shareholder prior to joining
Connacher in 2002. His experience in conventional production, horizontal
drilling and SAGD applications will assist in the timely evaluation and
development of the company's Great Divide project.

Conclusion

My Pure Energy subscribers have already profited 325% on this stock and
I still think it's going higher.

The obvious conclusion to this story is to buy Connacher with both
hands.

As I mentioned before, based on Connacher's proved, probable, and
possible oil reserves, after the Company completes its acquisition of
Luke Energy, the share price should be worth over $276 per share.

You need to hold a position in a Canadian oil sands company. And this is
a good one.

And like I just said we've tripled our money on this one. But guess
what. I've recommended another company, just like Connacher, in my Pure
Energy Report.

The company I'm talking about is already up 100%. But I know, like
Connacher, it'll soon be over 300% as well.


-Mike Schaefer

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