New York -- Reliance on foreign energy and fossil fuels continues to be a hot topic despite the many start-ups looking to bank on the issue to develop local sources of energy. One such industry is the Oil Shale.
In recent years several companies have been extremely successful at leveraging this new opportunity. With the price of Oil and Gas going up and the Barrel price now above $100, the exploitation and production from Oil Shale assets has become a profitable one. The price of the Barrel now justifies and leaves a profitable margin room for Oil Shale companies to still clear a profit despite the higher costs of exploiting both conventional and non conventional Oil Shale.
In the last three years several stocks have provided early investors with tremendous returns.
Kodiak Oil & Gas (NYSE:KOG - News) was traded at even lower prices ($0.30) during the same period in 2009. Shares have reached $10.75 three years later and once again providers shareholders with a return of more than 3700%.
Success factors of such companies often resolve on the company’s ability to find partner or funds to finance the exploitation and production from the acquired or leased assets. In many cases failure to access funding results in the projects becoming untenable for the business.
Investors looking to bank on these types of opportunities find themselves screening several different candidates with strong fundamentals as well as strong financial backing to pursue the business plan and objectives and achieve production stage profitability.
Investor Alley’s team of researchers took up the challenge of finding just such an opportunity and short listed one specific company that has recently issued very encouraging and positive news.
1st NRG Corp (PINKSHEETS:FNRC - News), is an exploration and production company headquartered in Denver, Colorado with existing natural gas (CBM) assets in the Powder River Basin of Wyoming. FNRC owns working interests in producing and prospective CBM wells in the Clabaugh Ranch Field, a development of 6,025 gross acres in the Powder River Basin in northeast Wyoming.
Several key factors set FNRC apart and could make it another successful company like Northern Oil & Gas (NYSE:NOG - News) and Kodiak Oil & Gas (NYSE:KOG - News). Among others, FNRC’s low geologic risk 42 wells have been drilled from August 2006 through December 31, 2010 with a success rate of 100%.
Furthermore the company just recently announced it has completed terms on a financing facility of up to $7 million. The facility will allow the Company to draw in one or multiple tranches as agreed to between the lender and the Company.
The Press Release Can Be Found Here:
FNRC announced earlier this week it had converted its Class A Preferred Shares into 1st NRG Common Shares. FNRC closed a transaction with nine qualified investors in January 2011, pursuant to which the Investors purchased a private placement of Units consisting of Preferred Shares which have been converted into 44,926,902 Common Shares together with Warrants to purchase additional Common Shares. The total Unit purchase was $14,452,014.45.
Mr. Kevin Norris, CEO, said, “The ability of the Company to access the $14 million dollars coupled with the previously announced $7 million dollar credit facility will enhance development on its core properties in the Powder River Basin, the Utica Shale in Ohio and the Niobrara Shale in Nebraska.
The Press Release Can Be Found Here:
1st NRG Corp (PINKSHEETS:FNRC - News) looks to have gathered several key elements that could allow it to further pursue the company’s objectives towards development, exploitation and production on its properties.
For more information about FNRC, visit the company’s website:
Alexander. K. Neumann
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