Phantom Trader Weekly Dispatch
Market Insights... Special Situations... Traders Network
In This Issue:
Ø San Telmo
Ø New Recommendation
Dear Reader,
Only a few hours ago I spoke with one of the directors of San Telmo Energy (STUOF: $0.52).
As you know, there’s been a good deal of frustration surrounding our position in the company. But, for a variety of reasons, I think the company is going to turn out to be a winner over the long term. Of course, some subscribers bought and sold for a handsome profit earlier in the year. Others own the stock at much higher prices.
Regardless of which camp you’re in, there’s a lot of upside in the stock at current levels.
I expect we’re going to here some news from the company on its 100% owned Teepee Creek project within the next few weeks. My expectation is that we’ll see an expansion of the Teepee Creek play. This is good news.
We’ve known all along that there was a lot of potential for expansion there. It’s just taken a lot longer than anticipated to get to the point of further development.
As for Gordondale, the company is licensing another three drill locations there. It’s already producing 200 barrels per day, plus gas. And the infrastructure is already in place. So there’s a lot of upside potential at Gordondale also.
Mcleod is producing 500,000 cubic feet of gas per day, which will increase significantly in the future. You’ll recall from previous releases from the company, Mcleod could produce between 2 and 3 million cubic feet per day.
So things are definitely looking good on the production and exploration side. Right now the company is producing about 350 barrels per day total. That’s not bad, considering the small amount of money spent.
I think we could see that number rise close to 1,000 barrels by year-end.
As you know, one of my main grievances with management has been their reluctance to really get out and tell the story. Seems that’s going to change as well. There’s a plan now in place to take the story on the road and present to brokers and investors. That’s a big, big plus. A necessity, in fact.
So stand by for some more news from the company in the short term. Things are looking up.
