Note: Up about 10 cents early today.
The information below is fron the analyst's report I posted yesterday. If oil from shale deposits costs about $70 a barrel to produce, there is not a lot of profit if oil in selling at $80 a barrel. If VOIL gets the conventional oil, non-shale type, which costs $20 to $30 a barrel to find, they have a big profit at curent prices. Don't you think large oil companies see that VOIL is in a good spot to bring up cheaper to produce oil. That's why I think VOIL is going to be bought out. They brought in two very bright men. The COO has vast experience with NYSE companies in making multi-million dollar deals. Their professor from Colorado School of Mines, knows about both types of oil plays. Old style and fracking. He is in charge with going through the seismic material they bought from Chevron. He has picked out the best site for the first well and knows where else to look.
"The source of all of that new oil production is the development of shale oil using fracking. While fracking booms, the amount of oil being produced from conventional vertical wells inside of the United States continues to decline. The reason for that is not because oil companies prefer shale oil, it is because over the past century the industry has drilled up virtually every conventional oil opportunity. Given the opportunity oil companies would much rather be developing an old school oil property instead of shale oil.
That is because old school oil costs $20 to $30 to find and develop while the average shale play costs $70 plus.Virtus Oil and Gas is a small company that is looking for one of those old school, big barrel, non-shale oil plays."
