Dear Reader, I want to tell you a little story about a tiny stock that went stratospheric in the 2000s… …then plummeted back to Earth… …but is NOW potentially gearing up for another run higher.. In the early 2000s, a ragtag group of oil roughnecks were scouring Australia's offshore basins. Until then, they’d been a luckless crew. Poorly managed. With zero oil and gas produced. They were exploring the fumes of an oily rag. No money. Oil prices had gone largely nowhere for years. But September 11, geopolitical tensions, and a bunch of supply constraints changed the game. Suddenly, this little Aussie explorer found themselves in the right fields off the coast of Western Australia, at the right time. Still, they didn’t make many significant discoveries. But the rising tide of the oil boom meant what these guys DID find became more economically viable. Even without that ‘king hit’, their shares went from 15 cents to $1.30 in a year. As the oil bull market continued, with prices reaching record highs in the late 2000s, these roughnecks finally hit jackpot. They managed to tag along in one of the biggest local LNG ventures of that decade. Their oil and gas assets became some of the hottest properties of the last resources boom. By 2008, a stock that could have been bought for low-cents four years early peaked over $9 per share. A market cap of $2 billion. Then…the GFC happened. The last oil boom ended. And these guys fell back to Earth. Entering 15 years of more disappointment and stagnation. Today, shares trade back under $2. But… As the oil and gas cycle turns up once again…our resources gun believes this crew could be gearing up for an encore performance… Drawing on battle-knowledge from the last boom, these roughnecks are once again cornering key assets…and making canny deals…at the exact right time. In fact, while gas was their golden ticket last time, this time it’s OIL. Potentially 1 billion barrels of untapped oil, to be precise. And with new discoveries far scarcer today than they were in the 2000s…those billion barrels could be even more valuable. Of course, any bet in the oil exploration sector is a risky one. But Bloomberg has pegged them as one of the first Australian energy sector targets in a new wave of takeovers. Who are they? Find out here. Regards, James Woodburn, Publisher, Fat Tail Investment Research |