Why Int’l Energy Stocks Will Out-Perform US and Canada


There are few countries with amazing geology as Colombia.  I think that’s why I’ve had some of my best stock market wins there.

My very first investment in the Oil and Gas Investments Bulletin in July 2009 was Pacific Rubiales, symbol PRE-TSX at the time–a heavy oil play in Colombia.  It was hands down the best growth story of its day.

In fact, as I’ll explain in my next story, it still is The Best Growth Story in junior energy in the history of the world—going from 9000 bopd to 300,000 bopd in four years.  The stock went from $2-$34 in just over two years.

Petrominerales was another early Colombian winner for me, going from $11-$33 in just 9 months on the strength of some wells in their Corcel field that were hitting 5000 and 6000 boepd.

Great geology means wells that pay back their costs very quickly–allowing junior producers to re-invest that money into new wells–and grow production within cash flow.  That means Free Cash Flow, no dilution and actually reducing debt (if they have debt at all).

There are three international energy stocks–all with Colombian footprints–that I think have great, near term upside for investors—and I want you to meet the management teams, in person, at the Subscriber Investment Summit (SIS) on Tuesday October 3 in Vancouver at the Pan Pacific Hotel.

We close attendance early every year, as this is a sell-out event—and with the star-studded line-up we have this year, that will happen sooner than ever—SO REGISTER TODAY.

I’m very excited to have the new CEO of Parex Resources (PXT-TSX; PARXF-PINK), Dave Taylor, joining us this year.  I have told subscribers FOR YEARS, if you only have one buy and hold oil stock in the junior sector, this is it.  Their wells pay out quickly, so they can re-use that cash to drill another one.  They are just starting on a new play with the Colombian National Oil Company, Ecopetrol.  They have over $100 million in net CASH.

Parex is mostly an oil play.  Canacol Energy (CNE-TSX; CNNEF-PINK) is a natural gas play that again has very fast payback on its wells—about 8 months.  I get excited at 12-14 month paybacks!  Their growth curve in the coming six months is phenomenal…and their natgas contracts are now guaranteed at some of the most profitable rates I have ever seen.  CEO Charle Gamba and CFO Jason Bednar will tell you how quick they are getting a pipeline built, and gas flowing to an underserved market.

And Serafino Iacono’s Pentanova Energy (PNO-TSX) is also presenting.  This team is drilling for natgas in the same highly profitable, underserved market that Canacol is into…but The Big Plan here is heavy oil in Argentina.

Iacono founded Pacific Rubiales–The Greatest Growth Story EVER. This team knows how to grow heavy oil stories like nobody else.

They went into this play when EVERYBODY else was only buying light oil in Argentina—the Vaca Muerta shale play.  There’s a massive resource already proven there.  Pentanova will be an engineering and logistics play really; there is no exploration in Argentina.  Billions of barrels of oil is there.  They bought this play just as heavy oil discounts around the world are getting smaller and smaller—increasing the profitability of their asset.

I have other energy presenters as well, and I’ll be telling you about them in future emails.

The reason to come to these (free) shows is simple: junior oil and gas is a volatile industry.  Even to hold these high quality companies through that volatility, you need conviction.  You get that by meeting management, face to face, and be able to ask them tough questions  and hear their answers…all for FREE.

It’s a one day event, from 9 am – 4 pm, with lots of free time between presentations to go speak to the CEOs directly—one on one, or be part of the throng.  And all the CEOs hang around for an hour afterwards while there is a cash bar.

Retail investors rarely if ever get to meet these management teams directly.


Keith Schaefer