alex's profileWords to be ReadPhotosBlogListsMore ![]() | Help |
|
09 October Coal Continues to be a Leading Source of Thermal Power As consumers are bombarded with the call for alternative energy, the realization that the world needs to keep the lights on and machines running is often lost. Consumers and businesses need electricity, regardless of the environmental consequences, and are ready to pay for it. The “need” for coal could be debated in the dark, but like it or not it is the leading raw material that enables the power and lights to stay on. Although variables need to be paid attention to, coal is a fairly safe investment bet for the longer term. All that is needed is for the right play to be found at the right time.
America West Resources Inc., an established mid-sized regional coal mining company, works to extract thermal coal for electricity generating plants primarily in the western US. The company currently operates a thermal coal mine in central Utah and has initiated plans for a metallurgical grade coal mine nearby. The company’s thermal coal mine has been in operations since 2003 and has proven reserves for the foreseeable future. It continues to add electric utility customers and expects production to be able to fill these contracts for some time to come. Its most recent contract is valued at $6.6 million with a California utility. This same contract calls for options to purchase additional coal at contract rates through the end of 2009. According to the company, all that is needed now for a successful completion of the contract, through the end of 2009, is to keep the mine operating at peak efficiency. If completed to its full potential, the entire contract (including a previous contract with the utility) could see $32 million in revenue for the company by the end of 2009. America West is not standing on its recent successes. It has acquired rights to a nearby leasehold where testing indicates potential for an estimated 50 million tones of in-ground coal. Obtained from C&P Resources, the lease and option to purchase agreement covers 5,200 acres of undeveloped metallurgical coal resources. This higher grade coal meets all environmental requirements and is primarily used in the steel coking process. Pending development, the company has hopes for production at this site to begin in 2011. The present economy not withstanding, America West Resources has a solid portfolio of assets to be mined (as it were.) The west’s growing need for reliable sources of electricity does appear to be a need for the longer term future regardless of calls for alternative sources of energy. America West is in place with the resources and position to capitalize. 22 August Nevada Geothermal Power Inc. (NGLPF.OB) Begins Geothermal Power Plant Construction, On Track for 4th Quarter 2009 Revenue Generation
When a solid product concept is ready for market there is little that can be done to keep it from generating solid returns. The concept is bottled up and ready to burst under the pressure of profit potential. As the concept reaches critical mass; all that one can do is channel the pressurized potential in the right direction. An investor that can recognize this event in the making is one that will see long term and steady profits. Nevada Geothermal Power Inc., a development stage geothermal power company, is currently in the development and construction phase of lease hold geothermal power properties located in Nevada. It currently owns 100% lease hold interest in 4 properties; 3 in Nevada and one in Oregon. At the present time, the company has been having solid successes in every aspect of the geothermal power development process. Its geothermal wells have been showing increased temperatures, its credit facilities have been upgraded from $140 million to $145 million (for power plant construction) and its Phase 1 construction of a 49.5 megawatt power plant has begun. Further, a 20 year - 35 megawatt power agreement has been signed with Nevada Power. Generally speaking, the entire process could not be going smoother as its tie-in to the Northern Nevada power system – some twenty miles away – has been upgraded and approved to 75 megawatts. Revenue generation from the now under construction power plant – contracted at a fixed price/fixed online date– is scheduled for the end of 2009. For the most part, everything that could go right has gone right for the company - an occurrence that rarely occurs in such projects. Given that this portion of the company’s build-out program is the first of several, future expansion at the company’s other locations is likely to add additional revenue at beneficial financing rates. Future beneficial financing terms are likely as the company will have a history in a relatively new power generation field and a steady revenue base of over 200,000 households in the region. In the sustainable power generation arena, solar and wind power often get the bulk of attention. Geothermal is often viewed as an afterthought owing to its specific regional requirements. Nevada Geothermal, however, has found a niche that appears ready to offer cheap sustainable power for the long term and is ready to profit quite handsomely by it. 28 June JUHL Wind Inc. (JUHL.OB) Announce Completion of $5.1 Million Private Placement and Intentions of Additional 400 Megawatts of Community Based Wind PowerNew and developing markets are a flexible sort of concept where business models are concerned. There are the typical business models that larger corporations follow and then there are the alternative business models that perform in much the same way but offer a bit more latitude. Observers would be hard pressed to indicate which works better for the targeted end-user and investor, but in markets where there is very little history, different may actually be more profitable.
JUHL Wind Inc., a community wind farm developer/operator, works to develop and manage community wind farm projects across the Midwestern US and Canada. The company’s CEO and Chairman is a widely acknowledged expert in the wind energy field who has developed and is working with a unique community wind energy user based business model. The model is unique in that the communities and farmers that the wind energy serves are substantial owners of the equipment that sits on their land or serves their local needs. The company derives its revenue through oversight of the individual wind farms and services’ provided to maximize each local wind farm. The company is apparently benefiting handsomely from this unique model and is in the process of solidifying its company structure to make more efficient use of its current and past successes. A strategic merger with already affiliated companies and a private placement in recent weeks has resulted in a unified company with the capital to move forward with additional community wind energy projects. The fact that the private placement of approximately $5.1 million was primarily funded by institutional investors doesn’t hurt the company’s reputation as a viable and going concern in a market that is growing rapidly but with less then certain outcomes for smaller players within it. JUHL Wind currently operates 11 community wind farm projects - serving 35,000 households - that generate approximately 117 megawatts of power. The company is at various stages of development for 16 additional community wind farm projects totaling 400 megawatts of power in the relatively near future. In a developing sustainable energy market, there are several ways to look at associated business models. JUHL Wind has one that differs significantly from the typical corporate plan, but one that appears to be generating profit potential nicely.
23 June Beacon Power Corp. (BCON) Receives Approval for First Flywheel Energy Grid Frequency Plant
Offering new efficiency opportunities in any mature market can be difficult. In many instances, the concept of “if it isn’t broke don’t fix it” applies. But when a mature market has reached its capacity to operate efficiently, a new way to get that little extra out of a system becomes a good place to find substantial profit. Beacon Power Corp., a company involved in design, development and commercialization of advanced power grid frequency equipment, operates in three of the largest US open bid electrical power markets. It offers advanced products designed to make power grid systems more efficient and safe through patented flywheel energy storage technology designed to stabilizes energy grid frequencies. Although the company’s product base may sound fairly esoteric in concept, the overall product mix is designed to make power generation on a large scale more cost effective and efficient. This is accomplished by offering advanced technology products to existing and future power generators. The company, however, does not just design, develop and commercialize advanced products for companies wanting a source of grid frequency stabilization. It also works to build frequency stabilized flywheel plants up to 20,000 megawatts. Currently, the company is working toward having two frequency stabilized flywheel frequency regulation plants in operation by the end of 2008. Although the permitting process for new sources of acceptable power are stringent, and sometimes lengthy, the company appears to have hit upon a technology that is clean and safe while providing stable grid frequency operation. As of May 19, 2008, the company has approval for its first plant to begin construction and operation. Another flywheel plant is currently working through the environmental process and is hopefully slated for the end of the year. New sources of electrical efficiencies are crucial to the country’s energy needs with Beacon Power being on the front lines ready to provide them. 12 June Royal Energy Inc. (ROYL) Announces 9% Increase in 1st Quarter Operating Cash Flow, Reserves Up 28%There is quite a bit to be said for hard work and perseverance. Put in the hours, days, months and years and something good should come of it. It doesn’t always work out, but in many cases it does. Just plain doing the work and having a solid business plan with a product need means profit eventually. Find a company that has all three and an investor can feel fairly confident that profits will come.
Royal Energy Inc., an oil and gas exploration and development company, works to discover and exploit oil and gas opportunities in California, the Rocky Mountains and other currently producing regions. The company has been in operation for over twenty years and has been consistent in its ability to provide return on investment. The company owns part interest or owns outright; leases in the Sacramento and San Joaquin Basins-California, Utah, Texas, Louisiana, 54 natural gas wells in California, 2 natural gas wells in Utah and 21 non-operating gas and oil interests in Texas, California, Utah, Oklahoma and Louisiana. The company also owns moderate reserves of oil and gas in-ground. For the most part, these positive gains are a result of higher oil and gas prices. They are, however, also a result of how the company goes about its funding of the individual wells it has; ownership in, developed or discovered. It finds a property to buy and/or develop and then sells interests in that particular property to individual investors. In effect, the company delivers its stable revenue results because it spreads risk over a wide investor base allowing for stockholders to reap overall company successes. To this end, the company has recently announced that cash flow for the first quarter of 2008 was up to approximately $747,000 while oil and gas reserves were up 28%. While most oil and gas exploration and development companies are beginning their hunt for leases, oil and gas, Royal Energy has made the leap to a solid and going concern. They have put in the time and effort to build a stable and producing base of leases, which affords it the luxury of generating revenue while adding to its portfolio of interests. If an investor would rather be a silent partner, benefiting from the company’s overall successes, there is a place for them in Royal Energy’s plan. If they would care to move a bit closer to the action there is a place at the well head for them as well. In a general sense, Royal Energy has created a full service investor pumping station for anyone that wants to fill up with profits. USA Superior Energy Holdings Inc. (OTC: USSUE) Estimates First Project Value at $122 Million Based on $85 per/Barrel Oil, Pumps 1,000 Barrels in 1st Half of AprilEspecially in Texas, hot out-of-the-shoot is the way that most start-up companies want to be thought of. They do their due-diligence and make the business go right from the start. There is always a little trepidation when investing in a relatively new company entering an established market, but if its plans workout, there can be a tremendous profit up-side.
USA Superior Energy Holdings Inc., an oil and gas exploration and recovery company, works to recover oil and gas from marginalized shallow wells through the use of new technological processes. The company is beginning operations in Texas and is planning projects in Virginia and Tennessee. During 2007, the company worked to build its corporate structure for operations by assembling an experienced team with over 50 years of experience in the oil and gas markets. It also researched and acquired properties where opportunity appears to exist. The company’s first target property is located at the Bateman fields of Texas. After extensive testing, the company has announced that $122 million of oil at $85 per/barrel is anticipated. As the company fine tunes its nitrogen and horizontal extraction technologies, other possible targets will be addressed in a similar fashion. What make’s the company’s business model work is the remnants of oil left behind after initial drilling and extraction has taken place. Initially, only 15-30% of possible in-ground reserves are extracted given the level of technology used at that time. In today’s technological world, the process of removing in-ground reserves has advanced to a point where the company can remove an additional 15-30% through the processes of Nitrogen injection and horizontal drilling. As the company has made projections based on $85 per barrel of oil, it does appear that it is ready to get up to speed fairly quickly. Its first wells have pumped approximately 1,000 barrels of oil in just the first half of April with expectations of output to move higher quickly. USA Superior Energy has spent the time to get its corporate self in order and is primed to take advantage of rising prices at the pump. OMNI Energy Services Inc. (OMNI) Comes Out of a Wet Spring Looking Strong in Surging Oil and Gas Services Marketplace
In many markets, it is the end producers that get all the attention. The smaller companies that make the “big boys” look good rarely get any attention. These companies make the market go when the oil and ooze start coming out of the machines. Looking a bit deeper into a high flying market may just turn up some investment opportunities that gush profit opportunity. OMNI Energy Services Inc., an oil and gas services company, offers a full range of oil and gas field services primarily in the on/off Gulf Coast, Middle-west and Rocky Mountain energy regions. The company offers its services through: seismic drilling, transportation, environmental services and equipment leasing divisions. Although seismic drilling is a leading driver of the company’s business it does have a solid footing in the environmental aspects associated with oil and gas drilling. In the first quarter, the company found poor weather among its low line areas and marsh contracts, which slowed revenue growth. Even so, the company was able to report that its overall position was not affected to the extent possible. It feels that working out of weather concerns, often associated with the first quarter, and the addition of new rental equipment will more then offset any shortcomings. The company’s environmental services division is finding benefit from the resurgence of reopening oil wells in many of its regions. This division works to; remove contaminated fluids and clean equipment -on site- for efficient operation. Whether offshore rig cleaning or removing waste drilling fluids, environmental services for oil and gas operations are performing to expectation and expected to contribute to increases in the future. As the oil and gas industry continue to take advantage of current market run-ups, their associated needs with non-operational elements of drilling need to be addressed and mitigated. As goes the oil and gas markets go the oil and gas services market. As one might suspect, oil and gas operations move on market price. Taking advantage when the price is ripe is the way to profit in this area. Energy Services is right in the middle of a market trend that is likely to be around for some time to come. For those that want a piece of the action, this may be a less noticed field to get wet in. Earth Bio Fuels Inc. (EBOF.OB) Find’s BioWillie and Nat. Gas Singing all the way to Its Bank
A captive audience is the dream of a lifetime for a marketer. Taking advantage is another thing all together. Once a customer is found, they need to be given what they want, and in a form they can understand. Most “modern” marketing hooks have been tried, but some more unconventional ideas haven’t. If a company can find a hook that will appeal to a captive audience, a very tidy profit will be at hand. Earth Bio Fuels Inc., a producer, distributor and marketer of renewable fuels, offers a range of products targeting transportation end-uses. The company’s main product lines include renewable fuels oriented around: ethanol, biodiesel and liquid natural gas. Its main product line is biodiesel. The company markets its products directly to wholesalers on a regional basis. Its biodiesel products tend to sell well into the truck-stop and fueling marketplaces after blending into B20 diesel products. Its liquefied natural gas products are sold through its wholly owned subsidiary Earth LNG in Oklahoma and Texas. The company’s strength lies in its regional appeal to a fairly targeted marketplace. The Southwestern US and parts of California rely on the long haul trucker to move goods between major metropolitan markets. These movements tend to concentrate refueling locations at many strategically located sites where one type/blend of fuel will typically be used as a standard between refueling locations. Having one type of fuel allows for a consistency within an engine, which leads to better engine efficiencies. To capitalize on this particular aspect of end-user preference, the company has hooked its horse to a unique marketing tool within the regional trucking market. BioWillie (a fuel idea begun by singer Willie Nelson at a nowhere truck-stop involving the fueling of his tour bus) branded biofuels are a trucking phenomenon within this region and have a regional spread. The company has exclusive license to this biofuel marketing opportunity and is using it to advantage. Interestingly, trucker preference leans toward biofuels in a region that has a wide range of pricing patterns. California is fairly high priced while other stops along the TX-CA corridor are less so. As the company’s products are largely based on canola, soy and other somewhat less expensive natural products it has advantages to ply. Ethanol is a consideration, but the company has such a spread of resources it is fairly well positioned regardless of price direction in any one category of fuel used. Bio Fuels Inc. is on a long stretch of highway and has profit centers along the entire route. |
|
|