Torrent Energy Corp. (OTCBB:TREN) Market Conditions Create “Two for One” Buying Opportunity in Energy Sector Yesterday morning Torrent Energy announced that the Company will be conducting an Investor conference call to update the market on their two primary energy targets; Coos Bay, Oregon and Chehalis Basin, Washington State, next Thursday, August 23rd at 1:00 pm EDT. We have included information below on how to get on the call and a link to the release. We are strongly recommending that EVERYONE interested in making money in the energy market take the time to get on this call.
Recent market conditions have hit resource companies particularly hard over the past week or two – with Torrent being no exception. In fact, trading of Torrent shares is currently down approximately 40% to the sixty to sixty five cent range from where they traded just a few weeks ago. When we see a move of this magnitude in such a short time we have to ask ourselves what is happening. Is it an overall market condition - or something more to do with the company’s fundamentals. In the case of Torrent Energy, first we looked at the overall energy market. Well, yes – oil has been down a few dollars recently and hovers around $70 a barrel. But we still feel that over the next few years, we will see continued strong demand and price strength for fossil fuels even in an orderly global economy. (If the global geopolitical climate shifts too far from the status quo, say in Iran, or other energy hot spot, we think $70 a barrel could be in the rear view mirror very quickly). Developing countries like China and India are experiencing sharp demand growth as their populations move up the ladder to a more westernized culture, meaning more electricity demand to power infrastructure and more oil to power automobiles. Yes, renewables will play a part as civilization looks to move away from non-renewable energy sources, but in the near term, we don’t see the landscape changing too much for the relatively inexpensive energy source of choice – oil and natural gas - humankind’s addiction (and present consumption levels) to these energy choices is just too great.
Then we looked at Torrent itself. Has anything changed over the past month or two that would warrant this type of market reaction? After reviewing the Company’s press releases during this time and talking with management, the simple answer is no. What has changed is the fact that each week, Torrent gets closer to being in a position to exploit its largest known energy resource by putting their Coos Bay property, which has an independent report as having a potential 1.2 TRILLION CUBIC FEET of natural gas into commercial production. And as we have stated here before, that is a massive energy resource (at $7 per mcf (mcf = 1,000 cubic feet), where the spot price of natural gas is currently), we are talking about $7 BILLION dollars worth of natural gas.
Now of course Torrent will not be able to extract all of the resource, but based on all the data retrieved to date from their test well programs, they have a very good idea as to a range of how much of the energy they should be able to extract - and have backed that number into an estimation of what the present value of the property should be in that case. In a press release dated July 23rd the Company estimates that their Coos Bay property, based on the current data derived from their development work to date would represent an un-risked asset value of between $160 million and $500 million.
This range represents significant upside from here. Taking into account the number of shares currently outstanding at Torrent as of the most recent quarterly report of 40 million, Torrent has a present market cap of $25 million. If they are successful in hitting the low side of their estimate for Coos Bay, we are talking about better than a six bagger from here – and we won’t even look at what would happen to the price if they hit the high side of the range (we’ll let you do the math on that one). You could even double the outstanding shares from here and we are still talking about a couple of bucks per share (300% appreciation potential)– and that’s just the Oregon property. Remember, Torrent has a huge coal bed methane/conventional play prospect up in Washington State as well.
Every once in a while there are excellent opportunities in the market, usually due to the masses over reacting to market forces. It’s during these times that money can be multiplied, not just grown. It’s not for the faint of heart, and it takes some investment moxy – but we see Torrent as one of these opportunities right here – where you can practically buy two shares today for the price of one just a few weeks ago - and participate in the kind of upside potential covered above. As the old saying goes “bought right is half sold”.
So for everyone looking in from the sidelines waiting for a reason to get long the energy market, here’s your formal invitation. And for those already in, this looks like a great place to efficiently lower your cost basis, because we strongly suspect Torrent’s day in the sun is coming soon, and we don’t want anyone to miss the boat on this one when it does!
Torrent’s management Investment Update/Conference Call will be held next Thursday August 23rd at 1 p.m. Eastern (10 a.m. Pacific) and will be available on the Internet at www.torrentenergy.com, or by dialing into the teleconference at 1-888-339-9446. Participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days. Like we said above, if you are interested in the energy markets and how you could prosper in the future of coal bed methane natural gas, we strongly recommend you join us for the call.
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I cannot believe no one is talking about this...
I thought the .60's was a good entry.
I think someone knows something, and if this conference call goes off good, this will rocket even more...
Posts: 793 | Registered: Aug 2004
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-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse. Posts: 1543 | From: Ogilvie, MN, US | Registered: Apr 2004
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Hard to believe considering volume is 4 times normal. As well as my gains over the last week.......
A real energy company, unlike these other cheap penny scams that have done nothing for me. I can name a dozen but I won't. My energy is focused on TREN.
Posts: 793 | Registered: Aug 2004
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