Independence Energy Corp. (OTC: IDNG), $2.10,and American Liberty Petroleum Corp. (OTC: OREO), $1.09, are two oil & gas stocks which are currently headed into separte directions on stock charts, but will that change after this week. Shares in the penny stock of INDG had heavy volume in the last trading session with 651.8K shares traded while OREO traded light volume, just 483.7K. American Liberty’s stock has had a trend of bouncing off of 3-4 consecutive low volume days with a surge and gains while Independence Energy is new to the market and really had its first showing on Friday.
The stock of IDNG and OREO are quite well known to be in the same class as SNPK, SEFE, and NSRS. Both have tremendous public awareness marketing campaigns behind them including “snail-mail” materials which have recently been delivered for American Liberty Petroleum. OREO stock also recently received an “independent” price target from Grass Roots Research. It would be safe to say that Bollinger Report will be issuing the same on IDNG stock in the coming days/weeks.
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American Liberty Petroleum Snap Shot:
The company was thought to be a junior oil explorer rubbing elbows with Occidental Petroleum Corp. (NYSE:OXY) and Exxon Mobil Corp. (NYSE:XOM) strictly in the geographical sense. Through a joint-venture nmed Aera Energy, Exxon Mobil and Royal Dutch Shell produce 25% of the oil & gas that leaves California. Occidental Petroleum is an even bigger Golden State player and is actually the 2nd biggest of all for the state (bigger than all if adding natural gas to the calculation).
How it matters to American Liberty Petroleum is that they set up shop directly east of California’s oil providing geography in western Nevada. Same geology and the same potential oil production with the only difference being that the Nevada oil business is still very underdeveloped.
The total number of oil wells established in the history of California oil drilling totals around 110,000. In Nevada, the total’s roughly 1,000. American Liberty Petroleum could have positioned itself on the verge of changing that IF the sampling and testing done so far is remotely near to being on target. Geological reports taken in the past few years suggest that there are 4 billion barrels of oil waiting to be drilled in the part of western Nevada where American Liberty has their leased properties, Kibby Flats and Gabbs Valley.
OREO doesn’t have rights to the entire 4 billion barrels, but what it does have is access to very attractive prospects in the center of the tested geographical area. Hence why American Liberty has reported that they will not attempt to drill for oil, but rather plans to act as a non-operator, which means OREO will not directly manage exploration, drilling or development activities, but instead will seek joint ventures with oil and gas companies that have exploration, development and drilling expertise.
Either way, this $115 million development stage company has a lot more potential per-share than an Occidental Petroleum or an Exxon Mobil do.
Why OREO and Not OXY or XOM Capitalizing?
“Big, Black Gold” companies have the cash to do anything, but those larger companies normally avoid anything that can’t start producing within 10 minutes of drilling. Junior oil players, like American Liberty, can apply their guerilla-drilling tactics and squeeze every drop of oil out of the ground that no bg companies would bother attempting.
American Liberty apparently has the right land with Kibby Flats and Gabbs Valley which could have hundreds of millions of dollars worth of oil that could be mined by OREO. Compared to California and Texas, Nevada has historically produced minimal oil, but the oil wells that have been drilled and developed have been phenomenal producers.
FACT: The Grant Canyon well is one of the nation’s biggest producers since it was brought online.
Independence Energy Snap Shot:
Independence Energy is an oil and gas exploration and development company focused on projects in the U. S. IDNG holds a working interest in 120 acres in Pottawatomie County, Oklahoma where oil was originally discovered 75 years ago and has produced in excess of 5.8 million barrels of oil from 19 wells.
Following the completion of a transaction on March 27, 2012, Independence Energy holds a 10% interest in the producing Quinlan Lease oil wells in Oklahoma. On April 2, 2012, the Company acquired a 5% working interest, on a seventy percent net revenue interest, of MontCrest Energy Drilling Program #3 in Coleman County, Texas. Two separate catalyst events are known and expected during the second week and third week of May from the MontCrest Program consisting of the drilling of Shield-MEI #105-H horizontal well and Vaugh-MEI #106 well respectively.
Right now, IDNG‘s market cap is at $47 million dollars, making it one of the lowest valued stocks today. Three months ago, IDNG was valued at $16 million by the market. Since then it has seen a 150% increase in valuation as it continues to gain investor attention. Based on historically weighted operation expenses, IDNG had sufficient cash on hand to fund its current operations for the coming decade as of March 15. Independence has publicly expressed interest in using their cash reserves to acquire “oil and gas” producing assets with significant upside.
Bottom Line: An investment in either American Liberty Petroleum (OREO) or Independence Energy (IDNG) represents an investment in one of the first real steps towards America’s energy independence more than anything. OREO and IDNG are two symbols that should be on your list of penny stocks to watch this week.
OREO has had bounce after bounce when the stock price gets too low and especially after a few days when volume slows down compared to the average. IDNG is relatively new being as it was just released to the wolves on Friday kinds like when SNPK came on to the scene in March. Is the stock of OREO or IDNG a good buy at these levels? As long as you know what is the true driving force behind them, a massive public awareness marketing campaign.