The next quarter thinkers of today’s investment world can tend to be fairly short-sighted. Profits for any given quarter are important but not necessarily an indication of where the company may be going. A “miss” in this or next quarter may seem like poor performance, unless one sees that the company was merely positioning itself for a larger score next year. Vision is not something one sees in a quarterly report but rather what could happen to profits down the road.
Strata Oil & Gas Inc., a junior development-stage oil and gas exploration company, works to identify and develop oil and gas sites primarily in Alberta Canada. The company’s primary investigative site is in the “heavy oil” (carbonate-hosted bitumen) regions of the Peace River, Alberta.
Although the company is in the initial stages of analysis for its Peace River carbonate-hosted bitumen leases, management has seen solid results (company position 124,000 acres with heavy oil potential of 188 billion barrels est. and 1,200 acres – 98 billion barrels est.). The process of identifying and making an assessment of heavy oil deposits is a detailed one requiring a multi-step process. The company is following accepted procedure for assessing its sites with results appearing to indicate sizable finds.
Most in the energy world indicate that solutions to the world’s energy needs will require energy inputs from many sources. No one source of energy will fill the void that more commercial grades of petroleum will leave, and “heavy oils” are but one of those inputs. From this perspective, the lead times required by the company to accurately identify and economically extract heavy oil falls just about into line with the generally accepted remaining reserves of more commercially used petroleum based reserves.
Generally, one might indicate that “heavy oil” is a speculative venture at this particular point in time; but so then was drilling for oil 5,000 feet and more below the rough waters of the Gulf of Mexico and North Sea. Most venture capitalists indicate that to succeed in venture capitalism, one needs many horses to come in a winner. Strata Oil & Gas may well be that horse.
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