Stock Guru LXES Profile
Boom time — Boom Region.
Do you know who made the MOST reliable income in the California Gold Rush? Not the miners. Those selling the picks and shovels to the miners and that’s what Lexington Energy Services is doing.
How big is the Western Canadian oil sands reserves? CIBC World Markets reported that Canada holds almost 60 per cent of the investable oil reserves in the world today. Canadian oil sands production will be the planet’s single largest source of new supply by the end of the decade. According to Jeff Rubin, Chief Strategist and Chief Economist at CIBC World Markets, Canada’s oil sands may be the final frontier for investors intent on profiting from depleting conventional crude reserves. It is estimated that with the Middle East and even Russia increasingly off-limits, that the oil sands and Canada’s other deposits represent 56 per cent of the world’s investable reserves.
Conventional oil capacity dropped in 2005 for the first time in history and will continue to decline for the foreseeable future despite soaring crude prices. The projected three million barrel-a-day increase in world production between now and 2010, will come from non-conventional sources. Canadian oil sands will be accounting for a larger share of incremental production growth after 2009.
The report states that Canada now has the potential to become a major global producer by 2010 with some 174 billion barrels of oil sands reserves. The current two million barrels a per day of Canada’s conventional oil production, didn’t qualify Canada as anything more than a secondary oil producer.
According to Mr. Rubin, it remains to be seen whether Canadian production can grow that quickly. The cost and time consumption are usually doubled as originally planned to bring on new oil sands supply. However, the cost story for non-conventional energy worldwide is the same, and are certainly not unique to Canadian oil sands projects. Depleting conventional supply, higher cost and time delays simply equate to higher crude prices.
The politically instability in other key rich oil regions, also makes Canada increasingly attractive as an oil producer and carries a huge safety premium for investment purposes.
Source: Lexington Energy Services Inc. and Canada News Wire.
CONTACT: Lexington Energy Services Inc., Mark Procknow, Investor Relations, Calgary, 1-877-279-4550
About Lexington Energy Services Inc.: Lexington Energy Services Inc. manufactures and leases innovatively designed oilfield service equipment. Through their wholly owned subsidiary, Lexcore Services Inc., we also provide a range of drilling services to meet the growing needs of the oil and gas industry, including Alberta’s oil sands.
Forward-Looking Statements: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Lexington’s filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
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