$LUXE: The Dean’s Virgin Oil and Gas Pick
November 7th, 2009 at 11:05 am Posted by The Dean
The Dean’s virgin oil and gas pick is here and, if Friday afternoon’s action is any indication of the the movement to come, the CollegeStock Community could be seeing Ivy League Profits next week.
Lux Energy Corporation (OTC: LUXE) is an oil and gas production and exploration company focusing on developing oil and gas resources in North America. $LUXE currently has oil and gas operations, including 4 oil and gas wells in West Central Alberta, Canada and the Quinlan #2 oil well in Oklahoma.
Based on the information on $LUXE’s website, The Dean thinks the Quinlan #2 oil well has the potential of producing at least $3 million worth of oil a year at it’s current output of 100 barrels per day.
The Dean believes $LUXE’s exploration projects could also reap profits because the company’s West Central Alberta C well looks promising with as many as 7 additional drilling targets already identified.
Friday, $LUXE closed up 49% and The Dean believes this green momentum will carry into next week, especially with a press release from the company hitting the news wire at the closing bell. This news told the world that $LUXE has established a firm foothold in their Canadian oil and gas project and $LUXE President and CEO Shane Broesky said this project has “far exceeded” its initial expectations.
Broesky also mentioned that the West Central Alberta C well is producing oil and gas without stimulation efforts. As a result, $LUXE plans to acquire additional locations in this area.
The Dean thinks all of this potential could add up to LIQUID GOLD early this week.
Looking at LUXE’s website, it does not mention what percent that they acquired in the Quinlan #2 well. They are not the operator of this well, it mentions “the operator”. Apparently this well was tested in the Simpson Dolomite or was producing from the Simpson Dolomite and historical data shows 100 bopd and 1500 bwpd in 1979. It does not have a current output of 100 bopd, the operator plans on working this well over in December of 09 hoping to get the 1979 volume – maybe. In order to produce 100 bopd and 1500 bwpd, a electrical submersible pump is needed and a cheap process to dispose of the saltwater. This will be a very expensive well to produce but at 100 bopd and an oil price of $80 per bbl, should be profitable.
Now the West Central Alberta C well had good news and 60 bopde is not bad (total net rev estimated about $60,000/month). Could not find what there interest is in this well either. Looks like this stock had a big volume day on friday maybe based on the news release friday. I do not see it – sorry
Workhorse
Fantastic analysis @Workhorse! You’re now my #2 favorite student right behind Packeteers!!!
it’s funny to me how naive people are about the fact that you can make money on promoted stocks irregardless of the quality of the company being discussed. and “workhorse” good research but that press release didn’t come out until close which means potential for more LUXE volume on Monday.