What do Questerre Energy Corp. (TSE:QEC) and Crescent Point Energy Corp. (TSE:CPG) know about oil in Saskatchewan that Centor Energy Inc. (OTCBB:CNTO) doesn't? Absolutely nothing. All three companies know there's oil in the southern part of the Canadian province, and they know exactly how to go get it. The only difference between QEC, CPG, and CNTO is, Questerre Energy and Crescent Point Energy are further along the development of their operations there than Centor Energy.
The two Canadian-listed stocks are also better-known than the OTC-listed U.S. company is. That does not mean, however, that Questerre Energy Corp. and Crescent Point Energy Corp. are superior opportunities. Indeed, the fact that the market doesn't yet know much about Centor Energy Inc. is why its investment potential is so significant.
If you're reading this, then odds are you already know about a huge shale oil deposit - the Bakken Shale deposit - that covers the southern part of Saskatchewan, the northwestern part of North Dakota, and the northeastern part of Montana. Although the estimates vary widely, the last report from a U.S. Geological Survey suggests the formation could yield more than 7 billion barrels of oil. That's more than enough to attract a crowd of oil explorers.
And, it has. It's attracted dozens of explorers, to be specific, including big names like Crescent Point Energy and Questerre Energy. QEC is working an area near Antler. In fact, Questerre owns acreage in the same Pasquia Hills where Centor is planning to mine. The preliminary core-hole drilling program revealed high-quality shale in all test zones. This bodes very well for next-door neighbor CNTO. Meanwhile, CPG is developing 1,100 sections of the Bakken formation, and finding similarly encouraging results at its Saskatchewan prospect, where it's developing one million acres of oil-fertile property. Again, the fact that peers and neighbors are not only interested in the same area but finding success in the same area where Centor Energy is drilling speaks volumes about the quality of the smaller player's land.
And just how solid is the CNTO prospect? Its third-party surveys say the Pasquia Hills land the company is prepping is right on top of 1.2 billion barrels of oil (shale oil). That's approximately $100 billion worth of oil at today's prices.
Centor won't be producing oil anytime this month, of course. It won't even be in production this year. But, when you're sitting on a potential $100 billion stash, patience can pay off.
Production should begin within three years, kicking off with a project expected to yield 5000 barrels per day. The other, bigger project should go into production in six years, yielding 10,000 barrels of oil per day. Both projects are expected to produce at that rate for more than (and this isn't a misprint) 100 years. The stock, however, could begin paying off for investors well before production begins. In fact, it would be unusual if CNTO didn't start to perform before Phase 1 began production in three years. In the oil and gas world, traders reward potential, and Centor Energy Inc. certainly has plenty of that. Any publicized progress in the meantime is also apt to prod shares of this mostly-undiscovered and highly-underestimated shale oil play.
Source: SmallCap Network