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How Make a Fortune with
Big Oil's Treasure Maps
Fellow Investor,
There's a lot of pressure on Jim Farnsworth, a geophysicist for Cobalt Oil.
$100 million worth of pressure.
Cobalt has leases to dig 50 miles from the mouth of Angola's Cuanza River Basin. A number of oil companies had explored this territory a decade earlier. They came up empty and wound up plugging the holes.
After pouring over the digital maps of the earth below, Farnsworth is convinced that the other companies just didn't dig deep enough.
He believes there is a multibillion oil field about some 3 miles below the surface. If he is right, he estimates the basin would likely hold between three billion and six billion barrels of oil.
If he's wrong?
The company would lose at least $100 million - the cost of drilling a single exploratory well. Independent assessors put the chance of a strike at just 1 in 3.
So why even take such a risk?
According to petroleum engineers and geologists, the easy oil (easy to find and drill) has all been extracted. Now it's harder and harder to find new sources of oil.
The scarcity of new oil reserves is pushing oil companies to take greater risks to find oil.
Farnsworth thinks drilling here is a risk worth taking. But then the question remains: why had so many other oil companies missed the oil he says is there?
The problem comes down to one word.
Salt.
Digital maps gave a good representation of the geology below the surface - unless there was a layer of salt. Salt confused the mapping technology and made it more difficult to read. So in the case of the basin in Angola, companies gave up when they couldn't see the subsurface clearly.
But digital mapping technology has improved and new maps give a better picture of what lies below salt layers.
In fact it was the new generation of digital maps that led to the discovery of oil below salt layers in the Tupi oil field in Brazil - perhaps the biggest new oil discovery in years.
Yet even with improved technology, mapping areas miles below the surface is not an exact science. That's why Farnsworth is scrutinizing the maps, reworking images and crunching data. And what he sees he believes is a treasure worth the risk.
(Important Note: I am not recommending you buy Cobalt - 1 out of 3 strikes is still too risky. A better and safer investment is the maps themselves and the little known company that makes these indispensable tools...)
21st Century Treasure Maps
The maps that geoscientists, like Jim Farnsworth, work with today have a lot in common with the treasure maps of old. In fact, you can call them 21st treasure maps. But instead of tattered, rolled-up paper with an" x" marking the spot for the buried treasure, these maps are digital and the treasure is black gold - oil.
Exxon-Mobil, Chevron, Shell, BP, all of the majors, plus smaller oil exploration firms you've never heard of - they all use these new treasure maps. With these maps they know where to drill and where not to drill, keeping margins fat and investors happy.
And now these maps can make money for you starting today... regardless of which way oil prices go. I'll tell you how...
Digital maps have revolutionized oil exploration
The technology that produces digital maps has revolutionized the oil business. Today, it's not a question of whether or not an oil company should use these maps, but where to get the best maps. The better the map the more money to be made, and the more money to be made the better the company's share price. It's really simple.
If you think oil and gas stocks have been a good investment for people in the past few years (and they certainly have) - this is a part of the business that's even better because it is must-have technology. And it's immune to the gyrations of daily oil prices.
If oil prices go up, exploration companies need the maps to find more oil. If prices are down, they need the maps to make sure they are drilling in the exact right places and not wasting money.
Either way, these Treasure Mapmakers profit.
As you can imagine a company that has the technology and equipment to produce the best maps is in a great position.
So I went looking for a company that produces the digital maps that big oil and natural gas companies demand. I wanted the company to show proven financials that make it a great investment.
And to further weed out the wannabes, I added another filter. I only wanted a company that offered dependable safety by demonstrating a reduced vulnerability to oil prices.
And I found it - a gem of a company with the technology and dazzling financials.
The company is not a household name, but it offers a great opportunity for investors who know that energy continues to be one of the best sectors for investing.
...Plus there is a recent development that makes this company an even better investment right now.
Before I tell you about that development let me tell you what makes this technology such an indispensable tool for oil and gas drilling.
Indispensable technology
The technology behind these digital maps is called seismic technology. And it starts with producing vibrations that send sound waves down the earth below a prospective oil field - a process called "shooting seismic."
Here's a picture of how it works:
The vibrations that shoot the sound waves are usually produced by air guns or explosives. In the illustration here they are sent from a "vibrator truck." (If the exploration were offshore, it would be delivered by a "seismic boat.")
The sound waves are reflected back at different time intervals depending on the geological formations below. They are recorded by special phones and then put on a digital map which analyzes the data to show where oil and gas formations lie.
New digital mapping equipment and software provide a wealth of data and different ways to view the data. The latest maps display 3D representations of the earth below.
These digital maps can pinpoint columns of oil and gas far below the earth. Some fields lie at depths equivalent to twelve times the height of the Eiffel tower. They not only show the location oil or gas deposits - but also reveal volume levels showing companies exactly where their drilling would be most effective.
Cash in on Big Oil's Treasure Maps: Own the Mapmaker
This company makes just about everything involved in shooting seismic: instruments, seismometers, cables, connections, thermal imaging equipment, etc.
It's one stop shopping for Big Oil. They get top quality digital maps and just about anything needed for gathering and collecting the data they need.
And a new development puts this company in an even better position. The company has developed the next evolution in seismic mapping ...in other words, even better Treasure Maps.
"Shooting seismic" is a complex operation using all sorts of cables, connections, and equipment. And while you can shoot seismic just about anywhere: land, swamps, sand, underwater - the cables and connections make it difficult and more expensive to shoot in less accessible locations.
Until now.
Shooting seismic goes mobile
The company has developed a wireless system for shooting seismic. By eliminating the need for cables and connecting equipment, the company makes it easier to go anywhere, with less equipment maintenance, easier transport, and greater efficiency. And their wireless system works on land and sea.
Not surprisingly, the introduction of mobile seismic systems has injected booster rockets into the company's growth.
Remember I said it had dazzling financials... Take a look at what's been happening:
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Sales of its seismic products increased by 72% in the second quarter of 2011 compared to the same quarter last year.
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Revenues grew by 74% in the two most recent quarters compared to the same period last year.
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Earnings per share shot up 206% in the most recent quarter compared to the same quarter last year.
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It is currently generating record revenues and profitability (this will continue as it introduces new wireless products).
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Long term debt - $0.
Analysts are extremely bullish on the company. They expect sales to grow by 45% and earnings by 100%.
Plus, there is the safety factor. And in today's market this cannot be overlooked.
In addition to being protected from dips in oil prices by must-have technology, its safety for investors continues to be reinforced by conservative management.
Management has been very careful in managing the shareholder base and has intentionally kept its share count low.
That means there are fewer shareholders (relative to its size) so its outsize profits flow to fewer investors: meaning more to each shareholder. That's how in the past year it delivered $4.35 earnings per share (while many other companies its size delivered only pennies - if that).
Right now is the right time to invest in this company. You can find out all about it my new report:
 Make a Fortune with Big Oil's Treasure Maps
I'm Ian Wyatt, chief investment strategist at Wyatt Investment Research. My firm has built quite a reputation for finding little-known companies that offer investors outrageous profits. This company is one of those opportunities and you'll find out all about it in my new Report.
The seismic mapping subsector of the energy industry is one of the most consistently profitable sectors today.
In addition to the company I just talked about, I have found one other company in the seismic space that I recommend. It's structured somewhat differently and has a different business model.
But just like the other company, it is enormously profitable. And it also maintains a lower share count than many other small caps so its profits flow to fewer shareholders - like you and me.
Its EBITDA (earnings before interest, taxes and depreciation), the formula I use for analyzing cash flow, grew an eye-popping 320% over the past year.
I tell you all about both companies in the special report. You'll find out:
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Why seismic equipment is so vital to energy companies -
How it works -
How these two companies have turned must-have technology to their advantage -
How these companies remain relatively insulated from dips in oil prices. -
Why mobility is turning these seismic technology companies into cash flow geysers.
The companies I recommend in this report are significantly undervalued at the moment and are poised on a springboard for a huge price bounce.
With my report in hand, Make a Fortune with Big Oil's Treasure Maps, you'll get the early scoop on these two excellent investment opportunities-for Free.
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Best regards,
Ian Wyatt
Chief Investment Strategist
Small Cap Investor PRO
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