posted by Ron Daems, President
I want to share some interesting news from up here in Alberta's "carbonate triangle" --- the biggest untapped oil resource in North America.
Things are starting to "heat up" as Asian money pours into the handful of companies involved in this exciting oil play.
Other than Strata Oil (SOIGF:OTC), some of the major players are Laricina Energy (private), OSUM (private), Husky, and Shell.
Laricina just announced its 100,000th gross barrel of bitumen production, and its carbonate-bitumen project could soon be ramping up to more than 10,000 barrels per day.
Some of Wall Street's leading firms have already jumped into the carbonate triangle, with Warburg Pincus, Blackstone Capital, and Goldman Sachs all taking positions.
But the big money is coming from Asia. Singapore and South Korea have both taken positions, with Korea Investment Corporation pumping $150 million into Laricina and Osum.
Plus, Sunshine Oil (another player in the carbonate triangle) went public recently, raising $580 million from Asian investors including the massive China Investment Corp.
Insiders know --- Asian money is being deployed in Alberta's carbonate bitumen play because it represents the future of North American oil production.
Strata Oil has a recoverable resource of 517 million barrels --- and that number could soon increase (more on that later). Our plan is to produce it with a proven technology known as cyclic steam.
Our strategy has been to preserve capital, and patiently bide our time as the equity markets heat back up. There's no point raising large amounts of capital at a low valuation. We're trying to protect our shareholders from dilution, and so far we believe we've done an admirable job of that. Strata Oil is sitting on an asset which has been independently valued at more than $1 billion USD --- on a net-present-value basis. With our share price sitting at about 12 cents, we believe we are the most attractively valued company in the entire play.
I'll touch base with you in the near future --- more exciting news is coming down the pike.