Circle Star Energy (fka CRCL)

[Timothy Smith]

Promotional commentary makes some interesting points.

CRCL: Circle Star Energy Drills A Billion Dollar Opportunity in Kansas

Circle Star Energy Corporation (OTC: CRCL) is an oil and gas exploration & production junior which has got most of its operational properties in Texas but has started expanding beyond its native state, most notably in Kansas.

Frankly, drilling for oil is almost everywhere so what makes Kansas special. Well, the state may be a contender for the United States’ best-kept oil secret. Although Kansas currently ranks among the top ten states in crude oil production, its best is yet to come. With gradually depleting reserves in Texas and advancements in drilling technologies, nearby Kansas is sure to attract a lot of interest of oil firms. Existing players are starting to realize current production is only the tip of the proverbial iceberg and thus, are busy buying land in the state. Sandridge, for example, paid $400 million and scooped nearly 20 million acres of land in Western Kansas 5 years ago and has got a number of wells operating as of now.

Circle Star Energy Corporation (OTC: CRCL) has a market cap of only $76 million but it has got ten oil properties to boast of. Some of these properties are already producing which is pretty much unlike the companies of its size. And it is when the company is far from achieving the full potential. It has got 8 different properties in Texas but the clincher is its huge land holding in Kansas. Till date, it has acquired 71,500 acres of prospective oil and gas interests in western Kansas spanning many counties. Better still, CRCL has started leasing land in some of the counties marked in this map.

These counties are part of either the Central Kansas Uplift or the Extension Mississippian region which between them share a massive oil field (see map below). As seen in the above map, these counties lie in the potentially oil rich ‘Extension Mississippian’ region where many other oil companies are investing capital but Circle Star Energy Corporation (OTC: CRCL) probably has the best prospects thanks to its massive land holding in the region.

While it continues with the exploration in Kansas (CRCL usually operates on an operating basis which minimizes the risk), it has got regular revenue coming in from Texas to fund the next stage of growth. In this sense, CRCL is a perfect blend of operational resources and future potential.

Source: http://www.smallcapnetwork.com/CRCL-Circle-Star-Energy-Drills-A-Billion-Dollar-Opportunity-in-Kansas/s/via/3445/article/view/p/mid/1/id/471/