Ride to Oil Riches with the
Lucky "Tombstone"* Kid ... and you'll profit from the best of THREE Bakkens. Did you know three major oil discoveries exist in the Bakken region? Many investors are still unaware. Even fewer know the name of the company now in position to pump light, sweet crude from all three finds simultaneously. This fast-rising company is run by a colorful ex-National Hockey League guy – the Tombstone Kid – who's already turned scores of ordinary investors into Canadian Bakken millionaires. Even better, he's about to do it again... this time south of the border. Saddle up now and join with The Kid and his hard-charging team for the gallop to big Bakken oil profits... You want to know this oil prodigy. Because the brilliant entrepreneur I call the "Tombstone" Kid is headed for the border. He's already made investors rich in the Canadian Bakken. Now my contacts tell me The Kid and his outfit are galloping straight toward two of the richest oil targets in the States – North Dakota's Bakken and Three Forks plays. Already, The Kid's made key land acquisitions. U.S. producers in the Bakken are nervous. Smack in The Kid's deadeye sights: billions of barrels of American light, sweet crude. This outfit's about to make the quantum jump to full-fledged "major" oil producer status... and it's going to be a profitable ride for investors who get in now. The Saga of the 21st Century's "Tombstone" Kid *It all begins with a handful of poker chips. When the venture capitalists staked the cocky then-33-year-old to an $8 million oil biz start-up fund, they handed him a gift of poker chips – called "tombstones" in the business – as a reminder of the risky nature of the deal. That was eleven years ago. The Kid still carries those poker chips – "tombstones" – as a reminder of the risk and hard work that went into taking his outfit from a mere 275 barrels of oil and oil equivalent per day to over 83,000 barrels per day and a $13 billion market cap... while putting his company in prime position to catapult to major oil league status. I've had my eye on this hard-charging outfit since mid-2009. Now it's my top recommendation in the booming trans-Bakken region. It is, very simply, one of the most innovatively managed energy companies I've ever encountered in my decadescovering the field. Growth, Growth, Growth A growing business is the best guarantor of a high yield. And growth is the hallmark of my top recommendation. Again, in a remarkably short period of time, their market cap has surged to nearly $13 billion. This eye-popping growth has occurred because, time after time, The Kid and his partners have shown uncanny skill at corporate takeovers and even more brilliance in investing in drilling rights and operating highly productive wells. On top of these successes, they've capitalized on extraordinarily innovative oil recovery techniques – including one method (scoffed at by naysaying competitors) that boosts recovery rates in many tight oil plays by up to 58%. Location, Location, Location My top stock pick also has a knack for spotting high-producing plays. For example, the company holds dominant positions in the Viewfield Bakken – the Canadian portion of the North Dakota Bakken – and the Lower Shaunavon in southwest Saskatchewan. Regarding the latter, The Kid and company just agreed to buy a rival exploration outfit, strengthening its position as the largest player in the Shaunavon, one of the richest plays in Saskatchewan.
This is truly a major acquisition. Shaunavon is the third-largest resource pool ever discovered in Canada, and The Kid's company now owns 90 percent of the land. The play has geology similar to the Bakken with deep oil formations discovered decades ago. Only now, with newly available drilling technologies (at which my top pick excels), has this rich reservoir of oil become reachable. With this new acquisition, the company adds assets of 28.7 million barrels of proved oil equivalent as well as 17.6 million barrels of probable reserves.
Indeed, the total oil in place in the Shaunavon play is estimated to be about 2.96 billion barrels, of which only 57 percent has been discovered, according to an independent federal agency report. As I stated, The Kid and outfit are the undisputed "big dogs" in the Shaunavon. Ever on the prowl, the company also acquired land in the Swan Hills area of west central Alberta, which one inside source believes could potentially double their current net asset value in the next three to five years. That same inside source estimates overall investment opportunities at $12 billion with potential returns from 50% to 500%. Impressed? Here's More to Like About This Company Their financials are rock solid. Back in 2008-09, they were one of only three oil and gas producers in my coverage to avoid a distribution cut. That's a striking accomplishment when you recall oil prices crashed from over $150 per barrel to below $30. Their strong reserve position in the Canadian Bakken, along with solid financial policies, helped weather those challenges. The resulting surge in their stock price in 2009 made fortunes for early investors and opened the door to completing a series of transforming acquisitions. Now the Stage is Set is for Another Monster Profit Run-up My sources whisper a big profit run-up is in the offing as this hard-charging outfit expands their operations – along with their innovative, "outside-the-box" production techniques – from the Canadian Bakken into sizzling-hot North Dakota with its massive Bakken and Three Forks plays. Not everyone is pleased, of course. On the U.S. side of the border, oilmen already working the North Dakota Bakken spy a cloud of dust on the Canadian horizon and know it's headed their way. They see the Tombstone Kid and his outfit galloping straight into the North Dakota Bakken Shale – and it's making them mighty edgy. "It's leading to something," said one energy pro, sounding a little like an Old West shopkeeper who just heard the Dalton Boys are headed to town. "Quite clearly, North Dakota is going to be a focus area for them." Uh, oh. Lock up your daughters and your mineral rights. The Tombstone Kid and his gang are going to turn the town upside-down and rob the bank. Except that it's... Too Late – The Kid is Already "Inside the Vault" Nabbing nearly 125,000 acres affording access to the massively oil-rich North Dakota Bakken and Three Forks zones, The Kid and his partners have already drilled their first operational North Dakota Bakken horizontal oil well. In total, the company has already identified over 159 low-risk drilling locations in the Bakken and Three Forks plays. This is deep in the heart of the main productive areas of the North Dakota Bakken – the discovery some believe will change the global energy map forever. The U.S. Geological Survey estimates over 167 billion original barrels of oil are in place in the formation in North Dakota alone. Just how much of that oil can be recovered is up for debate. The Geological Survey puts that number at around 4.6 billion barrels. But top producers in the region scoff at the grossly "low-balled" recovery estimate. At least one major Bakken player puts the ultimate recovery as high as 20 billion barrels. And now this upstart Canadian cowboy – the Tombstone Kid – is horning in! Why should you care about this "border war" that rates barely a mention in American financial pages? Here's why... Because it portends a fresh round of Bakken opportunities about to make even more investors seriously wealthy... with my top pick in a prime position. If you missed the first round of Bakken wealth-building, now's your chance in round two! Three Bakkens Are Better Than One Remember, there are actually three enormous oil plays in the Bakken region for astute investors – the Canadian Bakken, the North Dakota Bakken and the potentially colossal Three Forks play. Three Forks, if you haven't heard, is the vast separate field located beneath the landmark Bakken oil field, estimated to hold 2 billion recoverable barrels. Here's your million-dollar take-away: The Tombstone Kid and his outfit are poised to pump massive profits from all three fields at the same time. Wall Street seems blithely unaware of this blockbuster development. Indeed, for most investors, the name Bakken conjures up only North Dakota and the miracle that's transformed a state once known as "America's Siberia" into a booming land of opportunity. But just across the border in Canada, the Bakken Shake stretches into Saskatchewan and Alberta, where another exploration boom is underway. This is the region where the Tombstone Kid – poker chips still rattling in his pocket – made his name and fortune. From the National Hockey League to "Oilman of the Year" Growing up in Winnipeg, The Kid paid no attention to oil and gas – although both were about to change the future of Western Canada forever. In fact, he was all set to follow his father, a hockey radio announcer, into sports broadcasting. As a student at the University of Manitoba, he worked after classes as the video replay expert for the NHL's Winnipeg Jets. The Kid freely admits today that he only majored in mechanical engineering because one of his basketball buddies talked him into it. Sports appeared to be his destiny. But destiny had other plans, instead leading him west to Saskatchewan, where he found a job after graduation with Wascana Energy, an oil and gas concern in Regina. "I was the only engineer when I started," said The Kid in a Calgary Herald interview. "So it was great training on the business side for me, plus I got to do all the engineering as far as reserves and budgeting and then working on deals." Anxious to run his own shop, he joined a start-up named Magin Energy and helped them grow from 400 barrels of production a day to 10,000 – and survive the oil-price rout of 1998 when the price plunged to $10 a barrel. The Kid recalls the experience vividly: "You have to go through something like that, where you've lost all of your money and make it back again." That lesson would quickly prove invaluable. Because, after the sale of Magin, he ploughed every cent he owned into starting a company of his own just as he'd dreamed since his first days in Saskatchewan. As soon as his dream was realized, the oil business became very challenging, very suddenly. Enter the Men with the Poker Chips The year was 2001 – June to be exact. The Kid, his start-up partners and a merchant banking firm worked out a funding deal for $8 million – which had to be paid back in six months. There seemed to be plenty of time. And then came September 11th. On that crystal-clear morning, planes smashed into buildings, over 3,000 innocent people lost their lives and the world changed forever. Amid the fear and chaos, few noticed the price of oil dropped yet again. Markets fell. Investors locked their wallets. Yet somehow, through all the post-9/11 turmoil and confusion, The Kid and his partners went public and managed to raise $9 million and pay off the bankers... in October 2001, no less, barely a month after the momentous tragedy. They were off and galloping. Wherever he rides, The Kid still carries those poker chips – even though he's the top boss of a company with a $13 billion market capitalization and was just named Saskatchewan's Oilman of the Year. Aggressive Yet Risk-Averse It's not often you can describe a company as "aggressive and risk-averse." As much as that sounds like a contradiction in terms, it perfectly describes my top Bakken-region recommendation. The company employs a three-part strategy: - It employs its excellent balance sheet and growth capital to acquire high-quality, large-resource-in-place properties.
- It utilizes its high-quality assets and strong technical skills to grow production and reserves.
- It manages commodity price risk through a balanced three-year hedging program to provide stability to cash flow.
You can see the "lesson of 1998" at work in this strategy. It's an aggressive yet risk-averse combination that appeals to investors. The company's stock price tends to stay strong, allowing them to pounce swiftly and grab choice resource-in-place properties from financially distressed companies. It's a unique "operationally aggressive" yet "financially conservative" approach that's rare in the oil business. Debt levels remain reassuringly low. Relentlessly Innovative From his early days in the oil industry, The Kid saw the potential of horizontal well technology in shale regions. "We did this big study," he recalls. "And we found that the oil in place in those fields was grossly underestimated and that the recovery factors were very low. You could easily exploit those properties with horizontal technologies." Indeed, horizontal drilling, along with fracturing, has revolutionized the whole notion of drilling in continental North America. In a nutshell, horizontal drilling involves pushing a drill bit vertically through the earth's crust to a reservoir, then directing it sideways to capture more of the oil. This unique ability to stretch out horizontally, like the roots of a gigantic tree, enable these wells to reach multiple fractures for as long as 4,000 to 5,000 feet – nearly a mile. Fracture stimulation involves injecting fluids at high pressure to fracture the rock and make it more permeable. "Fracking," as the method is called, further enhances productivity, releasing the oil from its prison of tight sand or rock. It turns out the geology of the Bakken – whether in Canada or the U.S. – is ideal for this combination of horizontal drilling and fracking. Happily for my investors, my top recommendation excels at both methods... along with yet another innovative, contrarian technique. A "Flood" of Oil Profits:
The Kid Achieved What Others Said Couldn't Be Done "It won't work," warned the skeptics. "You can't waterflood tight oil reservoirs." Not for the first time, The Kid disagreed with the doubters and in 2008 began testing a "waterflood" method to enhance oil productivity in wells. What's the benefit of flooding an oil reservoir with water? The first reason is that injecting water into an underground oil pool increases the pressure – a good thing. The second reason is, as any schoolchild knows, that oil and water don't mix – another good thing. Because oil and water don't mix, the water injected into the well under very high pressure displaces the oil and forces it to the surface – the best thing of all if you're an oil producer. The results have been astounding, proving the "experts" wrong. Projects completed so far indicate the predicted increase in recovery rates from the 19% expected during primary recovery to over 30%. That's a 58% jump in the oil recovery increase. What's more, the company has the potential to boost recovery factors at its new Bakken wells with the same recovery increase. For the Tombstone Kid and his company, this boost in recovery rates could mean up to 200 million barrels of additional oil reserves. That can translate into billions of dollars of shareholder value. My team and I have exhaustively researched this unique outfit and will be delighted to give you access to my top recommendation – including the extraordinary profits you can expect in this remarkable company. All I ask is that you give my investing service, Canadian Edge, a no-risk test run. Put it to your own personal test – the tougher, the better. Why Canada? Let Me Ask You This:
Where Would You Rather Invest... - In the energy-rich, business-friendly country that's about to become the Saudi Arabia of the Western Hemisphere?
- Or the over-taxed, over-regulated country that said "No" to the Keystone Pipeline?
I've studied and invested in the Canadian energy-producing market for decades. In my view, there's no better place to stash your cash for spectacular dividend yields and some darn good capital gains. (Like the top pick I'll tell you about.) Canada has a lot going for it today. Especially from the standpoint of the American investor. Canada is booming. They have the soundest economy among all the G-7 developed nations. The Northern Tiger never had a sub-prime housing crash like, say, just about every other country on Earth you'd ever consider visiting! And Canada's banking system is so stable and solid it's enough to make a grown American investor cry. Canada's politics are smooth, serene and decidedly pro-business. Mr. Harper and his Conservatives, thanks to their resounding election victory, have years to govern without the threat of being toppled. What we have across our northern border is one of the world's most stable, investor-friendly environments. Oh, and Canadians are already our best trading partner. And their dollar (known affectionately as the "loonie") is kicking many other world currencies' over-inflated behinds. My Canadian Edge Newsletter Will Open Up
a Whole New World of Investing for You Maybe the best thing I can do is to let my subscribers tell you about investing in Canada withCanadian Edge... "The money I've spent on Canadian Edge is the best I have ever spent. I have bought thousands of shares of Canadian trusts, and they have been profitable beyond my wildest dreams." – Vern A. "I manage my son's account and it was up 101% last year. My own account is now in the 7 figures and the monthly dividends are just wonderful. Keep up the good work!" – from Florida "This is the best advice you have ever produced. You address every aspect of this investment with informative and insightful information... with the world's best dividend and capital growth potential." – Chuck Smith, a longtime reader "I am taking care of my mother who is 82 and in a nursing home. Your advice has been able to keep her comfortable [even though] nursing care is so expensive. I now have a great income-producing portfolio that doesn't dip like the Dow or NASDAQ on bad days and goes up in value almost every day." – C. Beeler Investing in Canada today is like stepping into a time machine and traveling back to an era when taxes were only 15% a year and our government at least TRIED to live within its means. Most of my Canadian Edge subscribers are income investors. There are superb reasons for this. You see, if there's a "perfect world" for income investors anywhere in this universe, it surely must be Canada. This is a country where business executives believe in paying back investors generously, and where 9-10% dividends are routine as maple syrup in the fall, rather than merely the stuff of investor fantasies – like here in the U.S. While the tightwads of the Dow dribble out weak 2.7% average dividends, Canadian firms routinely crank out up to five times more – and they often send them out monthly. There are 300 Canadian Income Trusts and high-yielding corporations on the market today. At Canadian Edge, we know them all like the backs of our hands. We don't just examine charts and make phone calls. We get "on the ground" and visit the headquarters, factories and production sites as well. We look at a company from every angle until no questions remain. Then – and only then – we assign each trust we follow a safety rating on a 1-to-6 scale. Super-safe trusts get the coveted 6 rating while those with more risk are rated 1. The result? You can be assured you're investing in only the most solid Canadian investments. This takes all of the guesswork out of investing across the northern border, so you can sit back and enjoy collecting your distribution checks. Don't forget: This is wealth-making intelligence you won't find anywhere else. No other advisory covers Canadian trusts and high-yielding corporations with the same depth and insight asCanadian Edge. Really, There's NO Other Country
Like Canada for Your Future... I mentioned above that Canadian executives – unlike many "celebrity bonus-hog" CEOs in the U.S. – believe in paying back investors handsomely. This is absolutely true. I know it's hard to believe in this day and age! But it really is true – those 10%-and-up dividend checks are the proof. Of course, not every Canadian company is a good place for your investment dollar. But you'll find the ones we recommend in Canadian Edge are as close to a "perfect world" for investors as you'll ever find – with generous dividends and excellent capital gains on top of that! For example, right now we're racking up some pretty impressive capital gains... - 168% in natural gas extraction, gathering and processing
- 174% in independent power production
- 353% in construction
- 284% in socially responsible oil and gas
- 235% in industrial chemicals
- 428% in international energy production
- 520% in pipelines, gathering and NGL infrastructure
- 439% in energy transportation
- 247% in a real estate trust
- 188% in renewable energy
These, by the way, are all current portfolio positions – with room to grow even more profits for us. I'll bet you could become accustomed to such gains – compared to the frustrating, pogo-sticking non-performance of the U.S. markets over the past decade. Join the Happy Band of Americans Piling Up
Portfolio Profits from North of the Border Here's what you can look forward to as a Canadian Edge subscriber: - Unlimited Access to My Monthly and Weekly-Plus Analysis Online. In Canadian Edge, we carefully monitor all high-yielding stocks and income trusts and guide you to the very best with our 1-to-6 safety ranking system. You'll feast on the superb picks in our Conservative and Aggressive Portfolios, as well as our "High-Yield Pick of the Month." This guarantees you a steady stream of fast-growing, high-yielding picks the rest of the investing world will only hear about well after the profits have been made.
- Flash Alerts. Whenever a significant trend or event emerges that could affect one of your investments, we'll alert you in plenty of time to take fast, decisive action.
- Canadian Edge Weekly. This indispensable briefing updates you with late-breaking news, insight and analysis about the Canadian political and financial landscape so you'll be ready for whatever the new week throws at you.
- Currency Tracker. With just a 15-minute delay, Toronto Stock Exchange quotes are converted into U.S. dollars so you can calculate your profits quickly and easily.
- "How They Rate" Intelligence. The "big picture" up north. This section covers approximately 150 trusts and high-yielding corporations considered appropriate for U.S. investors. Even though these picks may not appear in our portfolios, you'll have the information you need to make a decision about investing – including the current dividend for each one; its safety rating; a buy, sell or hold recommendation; plus my quick-hit commentary.
- Custom Portfolios. No matter what type of investor you are, you'll find fast-growing Canadian investments to fit your needs. Our recommendations are broken down into two categories: Aggressive and Conservative. You can also track your actual holdings and link them right to Toronto Exchange quotes with our exclusive live feed (converted into U.S. dollars for you). You always know where you stand with just a brief 15-minute delay. We track all our recommendations, so you'll see exactly how each one performs!
- Personal Access. When you have a question regarding one of our recommended investments, just contact me by email. Your questions will always be answered. You'll always have me by your side as you venture northward to profit. That's a promise!
Have Questions About "Going Canadian"?
Of Course You Do! We've got the answers. I know you may not be accustomed to investing outside the U.S., so I make sure each electronic issue of Canadian Edge is packed with specific instructions and expert advice to guide you every step of the way. How will your Canadian investments be taxed? Should you be worried about sudden policy changes from the Canadian government that could impact your holdings? How will fluctuations in the U.S. dollar and "loonie" affect your profits? Our articles and special reports are written in plain English to help you understand these issues in just a few minutes of reading. By giving you access to insight on investing in Canada, you'll be able to profit enormously no matter what's happening in the U.S. economy. Try a 3-Month, No-Risk Subscription Now Normally, the package of investor services Canadian Edge delivers costs $697 a year, easily one of the best bargains in all of financial publishing. (Other comparable services charge $2,000 or more.) Here's a better idea: Try Canadian Edge for three months on a $127 "give-it-a-fair-shot" quarterly subscription basis. Remember, the risk of trying Canadian Edge is... zero. If, over the next three months, you're not satisfied with the gains you're making, I'll send you a full, 100% refund. After three months (90 days), if you choose to continue with Canadian Edgeat the rate of $127 every three months, you may cancel anytime and receive a refund for the unused portion of your membership. There is no risk to you ever. There are those who say there's "no place" to put your cash in these tumultuous times.
On the contrary: High-dividend Canadian oil corporations are undoubtedly one of the best opportunities on the market. (Chinese companies are so interested in Canada oil that they've invested $15 billion in oil projects north of our border over the last two years.) Now you can start the profits pouring in with my top pick that's poised for unlimited gains. Let me show you the best Canadian companies – the most rewarding and safest places on Earth for your nest egg today. I wish I could be standing next to you a month or two from now when you receive an issue ofCanadian Edge and whistle at the profits you've made... or when your eyes pop at the size of the handsome dividend checks arriving in your mailbox. Please keep me informed of how my recommendations are working for you – I sincerely want to know. I really hope you'll join us. Try Canadian Edge. You'll be so glad you did. Sincerely, Roger Conrad
Editor, Canadian Edge P.S. As soon as you join Canadian Edge, I'll rush you my special report, "Ride to Oil Richeswith the Lucky Tombstone Kid: Stake Your Claim in the Three Bakkens." I reveal my No. 1 pick in the three Bakkens and why I expect this company to catapult itself into the oil major league. This outfit continues to increase dividends and reward investors. And this is the ideal time for investors to climb aboard this exceptional opportunity. | 
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