Shares of Sun Cal Energy Inc. (OTCBB: SCEY) recently announced the acquisition of the Jonah Prospect in Wyoming US. Sun will gain access to 6,000 acres of land in the Jonah Field region in Wyoming. This is the second largest oil reserve in the US.
Sun Cal also has a prospect in South Jonah consisting of 2,478 acres of land and in West Jonah consisting of 3,547 acres. The land around Sun Cal's territory belongs to EnCana, Chevron/Texaco, Yates Petroleum, and BP.
"We are very pleased to add an asset of this class to our expanding portfolio of high impact oil and gas properties. The Jonah Field is a world class natural gas development area, with plans to allow the development of more than 3,000 new wells," commented Lewis Dillman - president and CEO of SCEY - in a statement.
This gives the company an oppurtunity to drill 37 wells. Current estimates say there are between 1 and 3 BCF (billion cubic feet) in each well. In total, South Jonah and West Jonah could provide between 37 BCF and 111 BCF of oil at a value of $222 million to $667 million.
SCEY is an independent oil and gas exploration company with headquarters in Calgary, Alberta, and an operational office in San Francisco, California.
Disclosure: I do not currently hold any stock in SCEY.
Thursday, August 30, 2007
Fox Petroleum (FXPE)
One of the best penny stock picks is Fox Petroleum Inc. Fox Petroleum recently announced the completion of a major acquisition of land assets for the purpose of oil exploration on Alaska's North Slope near Prudhoe Bay.
Alaska's North Slope contains 23 active hydrocarbon fields that supplies the US with 16% of all its needs. This amounts to 800,000 barrels per day.
Prudhoe Bay is operated by BP and covers over 200,000 acres. It is North America's largest oil field and has just under 1,100 active wells. Prudhoe Bay produces over 400,000 barrels a day and has produced over 10 billion barrels to date.
Fox Petroleum obtained leases to mine 2 parcels of land. The larger parcel is the East Prudhoe Bay Prospect. It represents 26,789 acres and is next neighbours such as Exxon Mobil (XOM), BP, Chevron and ConocoPhillips.
Fox Petroleum's Arco Pipeline Prospect is a 5,701 acre parcel of land located near the important transportation infrastructure of the Trans Alaskan Pipeline and the all-weather Dalton highway.
Arco's Pipeline State 1 Well is located in the south-east corner of the Arco Pipeline Prospect, and has recorded oil and gas at different levels between 7,800 and 10,400 feet. The Arco prospect is neighboured by ENI, Italy's largest energy company.
Fox Petroleum has hired out a firm to prepare a report on the Alaska North Slope. Based on current production levels within and around Fox's acreage, it has been estimated as recently as in April 2007, there could 160 million barrels of oil.
Fox is currently doing a study using existing data for the region in order to assess the potential. The study is estimated to take 60 to 90 days. If the study goes well several test wells will be drilled by the first quarter of 2008.
Disclosure: I am currently not holding any positions.
Alaska's North Slope contains 23 active hydrocarbon fields that supplies the US with 16% of all its needs. This amounts to 800,000 barrels per day.
Prudhoe Bay is operated by BP and covers over 200,000 acres. It is North America's largest oil field and has just under 1,100 active wells. Prudhoe Bay produces over 400,000 barrels a day and has produced over 10 billion barrels to date.
Fox Petroleum obtained leases to mine 2 parcels of land. The larger parcel is the East Prudhoe Bay Prospect. It represents 26,789 acres and is next neighbours such as Exxon Mobil (XOM), BP, Chevron and ConocoPhillips.
Fox Petroleum's Arco Pipeline Prospect is a 5,701 acre parcel of land located near the important transportation infrastructure of the Trans Alaskan Pipeline and the all-weather Dalton highway.
Arco's Pipeline State 1 Well is located in the south-east corner of the Arco Pipeline Prospect, and has recorded oil and gas at different levels between 7,800 and 10,400 feet. The Arco prospect is neighboured by ENI, Italy's largest energy company.
Fox Petroleum has hired out a firm to prepare a report on the Alaska North Slope. Based on current production levels within and around Fox's acreage, it has been estimated as recently as in April 2007, there could 160 million barrels of oil.
Fox is currently doing a study using existing data for the region in order to assess the potential. The study is estimated to take 60 to 90 days. If the study goes well several test wells will be drilled by the first quarter of 2008.
Disclosure: I am currently not holding any positions.
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