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Fast Facts About Alberta . . . Discover our energy!
Alberta's extensive technology infrastructure, strong knowledge base and favourable business climate makes us industry leaders in oil and gas.
Oil
The oil industry is the foundation of Alberta's modern economy. We are one of the world's top energy producers with vast reserves of oil and natural gas. The oil sand deposits in Alberta are the largest in the world.
Our oil sands contain over 1.6 trillion barrels of bitumen, of which 175 billion barrels are currently considered recoverable. In 2003, production from conventional oil, oil sands sources, and pentanes was over 1.6 million barrels/day.
In 2003 Alberta accounted for:
66% of Canada's conventional oil 81% of Canada's natural gas 100% of Canada's bitumen and synthetic crude oil In 2003, Alberta's oil sales were:
62% to the United States of America 24% within Alberta 14% to the rest of Canada Alberta also holds an 5% share of the U.S. crude oil market.
Natural Gas
Natural gas is becoming increasingly important as an energy fuel worldwide. In 2003, Alberta's marketable natural gas deliveries totaled 4.97 trillion cubic feet.
In 2003, Alberta's natural gas sales were:
62% to the United States of America 24% to the rest of Canada 14% for use within Alberta In 2003, the production of natural gas liquids (ethane, propane, and butanes) totaled 101 million barrels, valued at $2.5 billion.
Alberta also holds a 12% share of the U.S. natural gas market.
International Trade
Our extensive technology infrastructure, strong knowledge base, and favourable business climate makes us industry leaders in oil and gas.
In 2003, Canada is the:
Ninth largest oil producer World's second largest natural gas exporter Third largest natural gas producer With over 55 years experience developing oil and gas reserves, Albertans have a history of innovative performance that is world class. From 1999 - 2004, our international trade in goods and services has achieved an average, annual growth of more than 15%.
Albertans are known for conducting business with a strong focus on export markets. We are proud to trade with over 160 countries. More than 2,000 Alberta businesses are exporting goods and services. Annual sales exceed $72 billion.
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Man with all this DD and the low float. There ain't No TELLIN' Where this baby is gonna' end up this week. I'm starting to get that RUNNING FEELING! Oh boy......This could BE HUGE!!!!!
Now.....all that beautiful DD is on the previous page. I'm bringing it over.
Irwin Energy Inc. is a public company listed on the Pink Sheet NASD, symbol IWNN.
Irwin Energy, Inc. is an independent oil and gas producer with revenue flowing from it's interest in the West Lock well in Alberta. The Company seeks out low risk opportunities to develop positive cash flow from proven and probable oil and gas investments.
Current projects include an interest in a well in Sylvan Lake, Alberta. Sylvan Lake is very near Shell's recent major discovery of an 800,000,000 cubic foot gas reserve. The company also recently announced its participation in the Concho Dome leasehold, in Apache County, Arizona.
Stock Issue Information
Company Market NASD pink sheet Trading Symbol IWNN CUSIP # 464115 10 4 Yearly Range Low $0.025 High $4.50 Share Structure
Category Shares Insiders and Officers 20,000,000 Float 5,024,775 Total Shares Issued and Outstanding 25,024,775
The Shares are publicly traded on the Pink Sheet NASD (Symbol: IWNN)
Directors & Officers
President & Director John Gaetz Vice Chairman Werner F. Grieder Darrel Cho Secretary Board Of Advisors
Advisor Peter K. Jensen Advisor Gordon LeBlanc Auditors, Bank, Legal, Registrar, Transfer Agent, Consultant
Accounting LDMB Advisors Bankers Bank of Montreal Solicitor & Registrar John D. Briner & David Stocker Transfer Agent Continental Stock Transfer Listings NASD Pink Sheet Consultants P. Eng. Independent Advisor
Mr. Gaetz is the founder of UV Technology Inc. and brings over 35 years of experience in the manufacturing sector and a strong background in accounting and finance. He has held several senior level management positions in the past including the position of Executive Vice-President and Secretary of UVST, until its 100% acquisition by SVSY.
Prior to UVST, Mr. Gaetz was responsible at various companies for financial administration, engineering, purchasing, production, product development, sales, labour relations, service, installation and quality control. Mr. Gaetz was Vice-President and Director of Administration for Harnischfeger Corporation where he was responsible for the manufacturing and development of naval defence equipment for the Navy of NATO.
Werner F. Grieder Werner F. Grieder Vice Chairman
Dr. Grieder PhD. received his Doctorate in Economics (Dr.rer.pol.) From the University of Basel, Switzerland. He also completed the IMEDE Seminar in Advanced Financial Management Lausanne, Switzerland in 1976.
Fluent in German, English, French, and Spanish, Dr. Grieder spent 18 Years in a range of management positions at CIBA Geigy Ltd.. He has at various times been stationed in Switzerland, Africa, Japan, Singapore and other parts of Asia. Subsequently he spent 2 years with Holderbank Ltd. in Honduras.
Currently, Dr. Grieder is a management consultant in Panama and a financial advisor to US and Canadian Venture Companies, with a major emphasis on junior mining companies. Over the last eighteen years he has raised several million dollars in funding for clients in Europe, and also negotiated strategic alliances, joint ventures, mergers and acquisitions for US and Canadian Companies.
Darrell Cho Darrell Cho Secretary
Mr. Cho has over twenty years of experience in sales and advertising in a variety of fields including industrial manufacturing, original equipment manufacturers and information technology. As a consultant with Spectrum Ventures Inc., he developed corporate web sites and oversaw the design and implementation of e-commerce solutions.
While Western Canada systems account manager for twelve years at Electrosonic Inc., Mr. Cho negotiated and secured new product lines, worked closely with clients to conceptualize and develop new products and supplied advanced computer products to the industrial manufacturing industry.
Mr. Cho's sales background includes responsibility for the West Coast sales area for Motorola Canada where he was also its top salesman. Mr. Cho is currently responsible for the structure and organization of the sales and marketing staff of the Company with www.theusedcarlot.com. Mr. Cho is fluent with all aspects of the marketing of the Company.
John Briner John Briner Corporate Counsel
John Briner practices securities law in Vancouver through his law firm John D. Briner Law Corporation, specializing in cross-border transactions. John has represented numerous clients in a variety of industries, and has represented several e-commerce and technology companies listed on both Canadian and US stock exchanges. Mr. Briner has been invited to speak at numerous conferences around the world, and has recently presented lectures in Taipei, Helsinki, and Rome on securities and technology. John received his initial training in litigation at Murphy Battista, one of Vancouver's most respected boutique litigation firms. He then practiced at Devlin Jensen, where his practice focused on securities, corporate finance and cross-jurisdictional transactions.
John has also been very active politically and has held various executive positions in the Federal Liberal Party of Canada, and currently sits on the Liberal Party Federal Appeals Board. He has promoted liberal economic theory throughout his professional career, as a delegate to the Democracy and Development conference in Rome, as well as through various speaking engagements throughout Europe, Asia, and North America. John has been active in the community and has sat on the Finance Committee of the Vancouver Board of Trade and the Corporate Advisory Council of Vancouver Opera, as well as various positions with the Vancouver Art Gallery and Contemporary Art Gallery. Mr. Briner was also involved in founding and editing several publications promoting human rights, and corporate and legal ethics. He founded a legal ethics fraternity at the University of British Columbia law school which is still active in its recruitment and promotion of legal ethics.
John graduated from the University of British Columbia with degrees in Music, Germanic Studies and Law. He is currently completing a Masters of Law degree at York University in Securities and Corporate Finance.
JOHN D. BRINER LAW CORPORATION Suite 302, 850 West Hastings St. Vancouver, BC V6C 1E1 Tel: (604) 685-7552 Fax: (604) 685-7551 Cell: (604) 614-1764 jdbriner*brinergroup.com
Gary Deck C.A. of LDMB Advisors Accountant
Mr. Deck has been in the accounting field for over twenty-three years. He received his Bachelor of Commerce (Accounting and Management Information Systems), from the University of British Columbia in 1976. Mr. Deck became certified as a Chartered Accountant in 1982 and as a Certified General Accountant in 1983.
His practice includes a particular focus on the areas of: audit and accounting for public and private enterprise, assisting companies who are going public in both Canada and the U.S., and the preparation of Form 10 - QSB and KSB for U.S. reporting companies.
Mr. Deck is a Member of the Information Technology Group section of the Canadian Institute of Chartered Accountants is also an instructor with the Institute of Chartered Accountants of British Columbia in the area of the Internet.
Mr. Deck is currently a partner with the firm LDMB Advisors Inc.
Peter K. Jensen Peter K. Jensen Advisor
Mr. Jensen acquired his Bachelor of Science and Laws degrees at McGill University (with a dual degree in common and civil law). His science degree is in biology with a bias towards medical studies. While studying for his BSc he conducted diabetes research at the Dr. John Dupre research facility at the Royal Victoria Hospital (Montreal) and while there was also the director of a community medical clinic for three years.
Commencing the practice of law in the corporate and securities fields in 1981, by 1987 Mr. Jensen had co-found Devlin Jensen, now one of the Vancouver's senior corporate and securities firms.
Mr. Jensen has a wide range of legal experience related to international business matters. One specialty has been helping Canadian and U.S. firms become reporting companies and issuers in Canada and/or the U.S. by way of RTOs or IPOs (conducted in conjunction with a network of US professional advisors).
Mr. Jensen also has significant experience in conducting legal affairs for clients in the Orient, Europe, Africa and Latin America. He has an understanding of the particular challenges facing corporate management as he is and has been, a director of several companies with capitalizations of several hundred million dollars.
Assisting clients in Canada, the United States, Europe and Hong Kong, Mr. Jensen has raised capital for his clients in amounts of up to one hundred million dollars.
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Irwin Energy, Inc. (OTC: IWNN.PK), is an independent oil and gas producer with North American operations. The Company seeks out low risk opportunities to develop positive cash flow from proven and probable oil and gas plays.
With the participation of Energy 51 as operators, Irwin Energy's projects boast a tier one team of oil veterans who have a combined 100 years+ experience with over 1000 wells drilled and a drill success ratio over 72%. As operators, these veterans have a vested interest in the Company's projects. In fact, their participation is the reason why Irwin Energy is able to gain access to Sylvan Lake, Alberta, an area of interest normally only populated by majors like Gulf Oil, Talisman Energy and Shell Oil (see details of this remarkable story in Our Projects section). Sylvan Lake is very near Shell's recent major discovery of an 800,000,000 cubic foot gas reserve.
Looking further down the road, Irwin Energy also aims to identify larger projects that can be developed as 'farm in', or joint venture plays with established industry partners. As Irwin Energy is focused on the energy sector as a whole, it is also searching for opportunities related to alternative and sustainable energy projects to round out its project mix and bolster long term growth.
With the high price of petroleum and solid long term prospects for the industry, we are confident significant opportunity exists in this sector for the long term and we as a team will continue to identify and develop viable projects that will translate into substantial value for our shareholders.
NEWEST PROJECTS!
Westlock Property, Alberta - Very Near To Production
Irwin's inaugural project is the Richmount Westlock well in Alberta. Irwin Energy estimates that the initial production rate of the Westlock well will be 500,000 cubic feet of gas per day. Production flow from this well is scheduled to begin shortly. Management anticipates that production from the Westlock well will be increased in four months after a review of reservoir data from the initial production records.
The Westlock was perforated and flowed at one million cubic feet per day for several hours to clean-up the formation. The pressures were 964 PSI (pounds per square inch) at surface and between 1050 to 1075 PSI at the perforation depth indicating a potential new pool relative to the off-set gas well. After flowing, the wellhead pressure returned to the original shut in pressure immediately.
The initial production rate of the well is estimated to be 500,000 cubic feet of gas per day. The company's participation in this project is twelve and a half percent. Production flow from this well is scheduled to begin during the second quarter of 2005.
"The Sylvan Lake oil and gas field was discovered in the late 1950's and has produced over 40 million barrels (mbbls) of high quality crude oil and 50 billion cubic feet (bcf) of associated natural gas."
Sylvan Lake Property, Alberta- Discovering What the Majors Overlooked
Irwin Energy's second project is Sylvan Lake drill program. The initial well is a 7,200-foot Peskisko Sand test that is prospective for oil and gas. Montana Oil and Gas has estimated that each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 300,000 barrels of oil. The average well in the Sylvan Lake Field has produced 500 barrels of oil per day with over one million cubic feet of gas per day. Irwin Energy's participation in this project is five percent. If successful, the company intends to drill up to 4 more wells on these land sections.
Sylvan Lake Area A Long and Steady Producer The Sylvan Lake oil and gas field was discovered in the late 1950's and has produced over 40 million barrels (mbbls) of high quality crude oil and 50 billion cubic feet (bcf) of associated natural gas. Production continues steadily today and many large companies pay benefits to their shareholders based in part on the resources found in the Sylvan Lake area.
The story begins back in 1958 when an exploratory well was drilled by major company in the area designated 7-3-38-3W5M (currently held and being drilled by The Company) but was abandoned after finding the shallow formations completely eroded by what is called post depositional cutting. As a consequence, the major company did no further exploration on this section and eventually bowed to the complaints of the freehold mineral rights owner and relinquished the deeper mineral rights on the West half back to the freehold mineral rights owner in the early 1960's. This relinquishment was extraordinary at the time as mineral right severance of this type had very seldom ever been done and more specifically, not often by the major companies. Accordingly, these mineral rights sat available and dormant until the early 2000's as almost all oil and gas companies thought they were held by the original lessee.
Through diligent land work (including field visits) Energy 51 discovered this relinquishment and quickly leased the west half of section 3. Since that time they have managed to lease an additional 160 acres.
"Each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day..."
Huge Potential Production This prospect has the potential to encounter both oil and gas in 5 of what are called Mississippian rock formations. Areas with certain similar particular geological features are common throughout Alberta and account for billions of barrels of reserves.
The Company and their partners interpret their prospect as an "island" of oil and gas much the same as the famous "N" pool of the Sylvan Lake area that is one of the main pools in production. If successful in discovering the anticipated isolated remnant pool, they may have room to drill upwards of four or five other wells in the same area.
Each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 300,000 barrels of oil. There are also four other pay zones that are prospective for gas. The average well in the Sylvan Lake Field has historically produced 500 barrels of oil per day with over one million cubic feet of gas per day.
Low Infrastructure Costs One major benefit to the way this property was discovered and explored is that infrastructure costs will be minimal because of the existing productions on the immediate area. This area has been developed for both oil and natural gas over the past forty-five years. Accordingly a multitude of gas gathering and processing facilities and oil transportation facilities have been constructed. A major gas processing facility is located within two miles of our project with gathering system lines with one half a mile from our proposed drilling location. The capacity of the processing facility is approximately 70 mmcf/d with current throughput of only 46 mmcf/d. Accordingly, excess capacity of 24 mmcf/d exists in the facility which would be in the best interest of the operator to fill as soon as possible. This gas processing facility also has oil pipeline access for the transportation of raw oil product to the main delivery terminals north of Red Deer, Alberta. Accordingly, trucking costs would be minimal to get oil product to the transportation system.
"With crude currently trading around USD $50.00 a barrel and natural gas over $7.00 per thousand cubic feet, it is apparent that initial probable reserves assessments for Westlock and Sylvan Lake production have the potential to generate significant revenue."
Barrhead Gas Project Irwin Energy's third project is the Barrhead gas project in central Alberta. The property includes a gas well, which has already tested gas in two zones. The project size will permit the drilling of at least three new wells.
Current plans at Barrhead call for completion work to be done on well No. 1; the well existing on the property when we acquired our interest, and to commence the drilling of well No. 2. Upon completion of the drilling on well number 2, Irwin will have acquired an interest in both wells. Irwin Energy's participation in the project is six and two thirds percent. The drill site for well No. 2 has been surveyed with drilling estimated to start immediately within 30 days subject to availability of a drill rig. The next well will be drilled right after well 2 is complete. All 3 wells will be fractured to breakdown the oil-permeated formation in the upper zone, before pipelining the combined flow from the 3 wells into a near-by refining facility.
Total cost for these three wells including fracturing and tied-in at Barrhead has been estimated at C$922,066 of which Irwin Energy and the other participants on the property, have fully paid their required drilling costs covering well No 2. Included in this estimate are the costs to hook these wells into the main gas delivery pipeline. Production from the three well is conservatively estimated at 150mcf/day with ultimate per well reserves at 383,000,000CF.
Combined Projects Revenue Potential The revenue potential of these projects is substantial. With crude currently trading around USD $50.00 a barrel and natural gas over $7.00 per thousand cubic feet, it is apparent that initial probable reserves assessments for Westlock and Sylvan Lake production have the potential to generate significant revenue. At Sylvan Lake alone, 1 billion cubic feet of gas and 300,000 barrels of oil conservatively equate to a combined probable reserve value in excess of USD $15 Million (based on a conservative estimate of a natural gas price of over $7 per 1000 cubic feet and over $50 per barrel of crude).
Arizona
The Concho Dome Leasehold
On May 1, 2005, Irwin Energy entered into an agreement with Crossroads Exploration & Production LLC for an undivided 20% working interest in the 10,021.47 acre Concho Dome leasehold, in Apache County, Arizona. Under the terms of the Agreement, the Company paid the gross sum of USD $72,200 for its share of the turnkey drilling expense and estimated completion expense. The Company's working interest is based upon the actual cost of the project.
The Concho Dome prospect is one of the main anticlines in the Holbrook Basin. The Holbrook basin in Arizona contains Paleozoic rocks including sabkha deposits of Permian age. The sabkha deposits in the Holbrook basin are similar in age and character to deposits in the Permian Basin of west Texas, which is a large sedimentary basin that is noted for its rich petroleum and natural-gas deposits.
Area is Host to Hydrocarbons and Industrial Gases
The potential for hydrocarbons and industrial gases in the Holbrook Basin is considered high. Evidence includes past production of helium, recent discoveries of carbon dioxide, shows of oil and gas in numerous wells, and a seep and outcrops of petroliferous rocks along the southern edge of the basin. Drilling depths have ranged from less than 4,000 ft to 6,000 feet. Significant features of the Holbrook Basin prospect include:
Potential for multi zone production Shallow geological structure implies low operational costs Year round access to drilling sites The Holbrook Basin has the potential to produce from at least five (5) Paleozoic formations with excellent reservoir quality rock (prospective pay zones). These zones are:
the Pennsylvanian Naco limestone, the Devonian Martin dolomite the Devonian McKracken sandstone the Permian Coconino the Permian Supai Drilling Test Well NZOG 17-01
Irwin Energy and Crossroads Exploration have agreed to drill a test well, NZOG 17-01, which is located just Southeast of Holbrook, Arizona. This test well is a 2,320-foot hole with the Permian Supai formation as the primary objective. This target was chosen to: (1) confirm the geological interpretation of the high precision gravity and multilevel aeromagnetic survey of Concho Dome, and (2) to test the source rocks of the potential pay zone structures.
The test hole is prospective for oil as well as helium. According to the operator, Gordon LeBlanc of Crossroads Exploration & Production, this well has the potential for recoverable reserves of 200,000 – 850,000 barrels of oil from the Permian Supai formation.
Crossroads Exploration & Production the Project Operator
Crossroads Exploration & Production, LLC, a private Louisiana based oil & gas exploration company, is the management entity on the Concho Dome project and a shareholder of Holbrook Energy, the joint operator. Mr. Gordon LeBlanc, a third generation oil and gas operator from Louisiana, is the managing director of Crossroads. Mr. LeBlanc majored in petroleum geology at Centenary College of Louisiana. “Crossroads” uses independent sub-contractors to work the prospective drill targets. This arrangement gives Irwin Energy independent corroboration of all geological/geophysical work to date.
The Significance of Anticlines in the Holbrook Basin
When layers of rock are folded to create a dome, the resulting geometry is called an anticline. Because oil floats on water, the oil tries to move to the top of the anticline. If an impermeable seal, such as a shale bed, caps the dome, then a pool of oil may form at the crest. Anticlines are sought out by petroleum prospectors, because in the right places, most anticlines contain oil.
Past Exploration and Reserves Estimates at Concho Dome
The Permian Coconino sandstone and Supai are the important objectives in the current drilling program as they are very porous and permeable in the Holbrook Basin. Residual oil shows in the Coconino on the Concho Dome lend evidence to oil entrapment within the Coconino. The Boundary Butte Field on the Utah-Arizona border has produced in excess of four million barrels of oil from 458 surface acres from a depth of 1,500 feet. Since the surface of Concho Dome covers 10,000 plus acres, the reserve potential is much greater.
A geothermal well drilled in 1993, the Alpine Federal #1, encountered oil and vugular porosity in the Supai carbonates. The PetroSun NZ 15-1 has shows of oil and discovered natural gas on the Concho Dome with oolitic and oolmoldic porosity in excess of 30% in the dolomites that contain oil and gas, indicating that reefs are present in the Supai. The 1959 Pan America wells on either side of the Concho Dome also encountered oolitic Supai dolomites containing shows of oil. Based on a high precision gravity and multilevel aeromagnetic survey in the Concho area, there is an area of high density between Mesa Redonda and the Concho Anticline, which has been interpreted as carbonate sequences. That area coincides with the surface anticline across the Concho Dome, so the structure overlies and may reflect a reef buildup in the Supai. Since Concho Dome is along the edge of the upper Supai salt basin, reefs, beaches and sandbars may all contain oil and natural gas. In addition, an oil and gas test south of St. Johns flowed water at the rate of 700 gallons per minute (24,000B/D) from sand in the Supai. Therefore, the Supai has the potential for prolific production rates from the sands, as well as vugular dolomites (a geological formation that is highly porous).
The Permian Supai oil reserves based on volumetric calculations using the porosities encountered by Ridgeway Petroleum and PetroSun allow for 553,900 barrels per 40 acres and/or 1.9 BCF of gas per 640 acre spacing. The Permian Coconino oil reserves based on the Boundary Butte Field are 330,000 barrels per 40 acre spacing.
The Holbrook Basin has not been extensively developed for oil. As such, it should be considered a new area of exploration. However, natural gas (Helium) has been produced from the Pinta Dome field within 5 miles from the NZOG 17-01 well prospect. Decline in production required the closure of the processing plant and the abandonment of the Pinta Dome gas field in 1976.
Access to Production Facilities
In the event that oil is discovered, Mr. LeBlanc, the project operator, believes the raw oil product can be transported via truck to a delivery terminal approximately 45 minutes away. Trucking costs would be minimal to transport the crude oil to the terminal.
LAST PR
Irwin Energy Announces Monthly Production Totals For Successful Gas Well VANCOUVER, British Columbia, Nov. 3, 2005 (PRIMEZONE) -- Irwin Energy Inc (Pink Sheets:IWNN) is pleased to report monthly gas flows for the 1-5-60-25W4M Westlock well that was completed and tied into a sales line in May and which is currently produce revenues for the company. The Westlock well thus far has produced 163.8, 271, 104.2, and 129.38 E3M3 (convert to MMCF 0.035494) from May to August inclusive. Volumes for September and October will be announced upon receiving the appropriate data from our operator. All appropriate royalties, transportation and operating costs have been factored in and taken off by the operator. Mr. John Gaetz noted, "The huge rise in natural gas prices of late will benefit the company and its shareholders in terms of future revenues and immediate cash flows."
The Company has a 12.5% interest of the profit sharing on the property and at a current rate of natural gas prices estimated at $10-$11 per mcf over the last months, the Company stands at a good return on its investment. Further update on the revenues will be forthcoming from the operator and our joint venture partners.
The operator of the NZOG 17-1 has competed initial preliminary hydrocarbon tests. These completed tests have confirmed the presence of oil/hydrocarbons and have as of October 13, 2005 taken steps to install a pumping station. Once this pumping station is up and running, (which is planned in the next few days), tests will be conducted to determine a stable daily flow rate to determine the production rate for revenue.
President John Gaetz stated that "the Company would like to take this time to thank its share holders for their patience over the last couple of months. We are very excited to have made this announcement as to the success of this well. Once NZOG 17-1 is in full production, the product will be pumped into production tanks on the property for easy 365-day access to be delivered by truck to Giant Industries Refinery in New Mexico, 85 miles away."
CONTACT: Irwin Energy, Inc. Kristyn Rose 604-628-7799
Andy Leitao 604-628-2142
Source: PrimeZone (November 3, 2005 - 8:00 AM EST)
WHY INVEST IN OIL AND GAS?
World Oil Market Makes Irwin Energy an investment Opportunity In the last eighteen months, we witnessed a historic increase in the price of fossil fuels as the price of crude surpassed the $50 dollar mark. As an investor, the question arises: Can the bull market in oil and gas be sustained? The quick answer: YES.
Higher oil and gas prices are here for the long-term, because factors like demand from booming Asian economies, strategic reserve shortages, war, terrorism and geo-political instability, are market pressures that won't be resolved over night, thereby causing prices to remain high. As such, the energy sector continues to offer promising, long-term investment opportunities. Many of these opportunities can be found in small-cap and micro-cap exploration companies.
"the energy sector continues to offer promising, long-term investment opportunities"
This in a nutshell is why Irwin Energy has chosen to make oil and gas its first focus.
Why Invest in Oil and Gas in 2005? America is facing an energy supply crisis that looks like it is going to get worse, before it gets better, if it improves at all. As the world's largest consumer and importer of oil and natural gas, the US must rely on other countries to meet its energy needs, simply because the nation cannot produce enough domestic oil and gas to meet its own needs. In a nutshell, while record numbers of American's drive gas guzzlers, the country teeters close to the brink of energy insolvency.
The US natural gas supply/demand situation is the tightest it has been in three decades, due, in part, to low domestic reserves in storage. The United States has not been this low on natural gas reserves for a very long time. It's a huge shortfall that equates to over a trillion cubic feet or more of natural gas, which usually is in storage, but has instead been depleted.
U.S. oil production peaked in 1970. Going forward, domestic oil production in the U.S. will decline from 8.5 million barrels per day in 2002 to 7 million barrels per day in 2020 - while consumption will rise from 19.5 million to 25.5 million barrels. The U.S. will have to import more than three quarters of its total oil and gas needs by 2020.
"China now imports more than 2.5 million b/d of crude oil and 500 thousand b/d of refined products."
China's Insatiable Appetite for Oil and Gas The mega-impact on the global supply of oil and gas resulting from ever increasing Asian demand is also taking its toll. Increased demand from China's explosive economic expansion is, in part, driving the biggest increase in fossil fuel demand in the past 16 years. Since the early 1990's, China's GDP has grown by a compound annual rate of approximately 8 to 9 percent. Throughout Asia energy and raw material supply are becoming big problems. The situation is critical, particularly in terms of electrical energy supply (produced at plants running on combustible oil). Power failures and long black-outs occur frequently in China, India and other countries of Southeast Asia.
In the last decade, China went from being a modest oil-exporting country to a major oil-importing country. Imports of crude to China have increased every year since 1992, the last year China produced a small surplus of crude oil. China's crude-oil imports in 2003 hit a record 80 million metric tones. According to figures from Chinese customs officials, crude-oil imports in the first seven months of 2003 jumped 30 per cent from a year earlier. China now imports more than 2.5 million b/d of crude oil and 500 thousand b/d of refined products. Total consumption, in 2004, so far, is estimated to be up 13.6%. This demand is driven by explosive economic growth in a nation with 1.3 billion people and a burgeoning middle class.
Recognizing that its growing demand for a steady supply of petroleum is a problematic issue, China is taking steps to secure its future energy needs. China has stepped up diplomatic initiatives to foster stronger relations with oil exporting nations, thereby potentially putting the squeeze on supply to the US. China also has plans to create a strategic petroleum reserve targeting a 75 day supply. At current consumption, that would mean 450 million barrels in storage. To meet this end, China has been buying foreign reserves and striking long-term supply deals for both crude and natural gas. In short, China's growing demand for fossil fuels complicates the US's ability to procure supply.
The booming Chinese economy means demand for oil, gas, and other commodities will be strong for years to come. The ripple effect from such strong demand will be felt across the globe as commodity prices, including oil and gas, continue to increase or remain near record highs.
"The United States needs to decrease its dependency on oil from countries that are politically unstable and/or hostile to it."
Problems in the Middle East Stroke Supply Fears Terrorism and geo-political tensions are an additional problem to the reliability of future energy supply. Saudi Arabia remains the world's largest oil exporter and is a country the US is firmly energy dependent upon. This is a precarious situation when one considers Saudi's vulnerability to terrorist attacks from Al Qaeda, and other militant factions.
Some analysts suggest that Saudi pipelines could be targets of terrorists and that more needs to be done to protect that infrastructure. The concern is that an attack on Saudi operations could affect the Kingdom's ability to serve as a swing producer who has extra production capacity to open and close the taps. Needless to say, any substantial attack on Saudi oil facilities would be a major event for world oil markets. The threat to Saudi's oil supply is case in point, experts say, as to why the United States needs to decrease its dependency on Middle East oil. Political instability in the Middle East and terrorist threats will keep oil and gas prices at multi-year highs.
Though Iraq has the potential to be a major exporter of oil to the world, war and civil unrest in there suggest it will be years before it can produce and export a steady supply of oil. Analysts also view political tension in major, non-Middle East oil exporting states of Nigeria and Venezuela as also having the potential to significantly disrupt exports and drive up world prices. The United States needs to decrease its dependency on oil from countries that are politically unstable and/or hostile to it.
"...these circumstances will continue to encourage exploration investment in Alberta for years to come, thereby creating new opportunities for savvy investors."
World Oil and Gas Production is Declining Though Production is at Capacity World oil and gas production from existing fields is declining at an average rate of 4% to 6% per year, as the World's largest oil fields age. According to the Colorado School of Mines, the world's 120 largest oilfields produce about 33 million barrels a day - almost 50% of the world's supply. Making the situation worse, investment in oil production infrastructure as well oil exploration is lagging behind world demand. To meet projected demand in 2015, the industry will have to add about 100 million barrels a day of new production.
According to the United States Geological Survey's latest report published in 2000, the world's proven oil and gas currently stands at about 2.5 trillion barrels. A calculation using data from the Center for Global Energy Studies shows that with 28.8 billion barrels currently being consumed per year (79 million a day), there is only 80 years of supply left in the ground. In 2002, the world produced slightly more than 66 million barrels of oil a day (bod), while it consumed about 76 million bod, or 25-27 billion barrels a year. Yet, only 7 billion new barrels a year are discovered. The U.S. Geological Survey says that world production will peak sometime in 2011-2015.
Saudi Arabia is essentially pumping at 100% capacity. Increasingly, Saudi Arabia's capacity to function as a reliable swing producer of oil in times of supply constriction is uncertain. Much of this problem is that Saudi Arabia and other OPEC members have not invested resources in further production capacity. Russia has about 60 billion barrels of proven resources but that is only about enough to supply the world for less than two years. It is generally believed there are no more significant quantities of oil to be discovered inside of Russia. Although West Africa states accounted for 10% of global oil production in 2000, the U.S. Department of Energy estimates that this share will increase to a full quarter of world production by 2020.
In the face of current escalating rates of demand, the issue of supply shortage is exacerbated. With supply shortages and increases in global demand for natural gas has come the need to find new inexpensive reserves. All of the above concerns highlight a strong case for Alberta as a reliable, low-risk, long-term supplier of fossil fuels. Accordingly, these circumstances will continue to encourage exploration investment in Alberta for years to come, thereby creating new opportunities for savvy investors.
Alberta is a Convenient, Reliable and Abundant Source of Oil On the World stage, Alberta's oil and gas potential is largely overlooked. The December 23, 2002 edition of Oil and Gas Journal reported that Saudi Arabia is home to the World's largest proven reserves, with known reserves approximating 259 billions of barrels (bob). (See chart below).
"Canada holds the world's second largest proven reserves at about 180 bob (excluding the tar sands), which is approximately 40% more than Iraq's known reserves..." Country Proven Reserves Saudi Arabia 259 Canada (excluding tar sands) 180 Iraq 112 Kuwait 94 Iran 90 Venezuela 78 Russia 60 U.S. 22 China 18 Norway 10
As you see, Canada holds the world's second largest proven reserves at about 180 bob (excluding the tar sands), which is approximately 40% more than Iraq's known reserves of 112 bob. Alberta has more than 45% of Canada's established reserves of crude oil, 100% of the country's oil sands reserves and 85% of its natural gas. Alberta is also the world's 2nd largest natural gas exporter.
Equally important is that these massive reserves are on the North American continent in the politically stable G7 country of Canada. Alberta oil and gas can be easily and safely transported to the U.S. and other markets.
posted
ok i looked into this and looks like a cheap buy for a very good industry. It is true that Alberta has the largest oil reserves in the "oil sands"
BUT i failed to find any mention of IWNN having any stake in the oil sands. if i missed it PLEASE let me know because THEN it DOES look like a good buy. especially long term
quote:Originally posted by Ripler: ok i looked into this and looks like a cheap buy for a very good industry. It is true that Alberta has the largest oil reserves in the "oil sands"
BUT i failed to find any mention of IWNN having any stake in the oil sands. if i missed it PLEASE let me know because THEN it DOES look like a good buy. especially long term
This is under the "Arizona Project" paragraph. Found this alone in 30 seconds just reading the DD above. Now it's 40 min to open. Don't have anymore time to find more. Which I'm sure when I go look, I'll find quite a bit.
Evidence includes past production of helium, recent discoveries of carbon dioxide, shows of oil and gas in numerous wells
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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quote:Originally posted by lilpennypincher: I'm all over it!!!!!!!
----------------------------------------------- With the Dzzzzzzzzz! ??? How in the Hell am I supposed think now??? FootbalL football football, LOL
Posts: 10729 | From: oregon | Registered: Feb 2005
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posted
are we looking at another small run here late in the day, or should we take profit now? any opinions?
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
It's hard to ask anyone to do DD while the Market is open. I don't know about all of you but, I've got two computers with about 40 windows open trying to watch stocks.
Please do some DD, Keep digging or wait till the market closes before asking folks to dig up stuff.
HEY, IT'S MOVIN!
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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posted
this was on SubPennyRadio alot today... Just mentioned it again in afterhours wrap up deal...
Posts: 583 | From: Atlanta | Registered: Aug 2005
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