Resource World Magazine

THE OIL PATCH REPORT J o e l Ch u r y Vancouver LNG Investment Conference planned A s Canada's west coast prepares for the export of liquid natural gas (LNG), big investment dollars are going into the companies that stand to benefit. In order to prepare investors for navigating LNG's waters, the first ever LNG Investment Conference will be held September 25th at the Pan Pacific Hotel, Vancouver, British Columbia. "Even before the first molecule of gas leaves the BC coast there has already been $9 billion worth of takeovers, and tens of millions of dollars in drilling up reserves to get ready for exporting to begin," says Keith Schaefer, veteran oil and gas newsletter publisher, and host of the event. Even before they've decided whether it's economic or not, we're seeing a huge investment happening and a lot of these stocks are now starting to pick up." With 10 proposals already in place to export LNG from British Columbia to Asian markets, many companies will be involved with the massive infrastructure build out. These include service companies at all stages of production, support, construction companies at the downstream level, and of course the producers themselves. Much like Schaefer's Oil and Gas Investments Bulletin newsletter, the conference is designed to educate investors on how to make better choices within the industry. The event gives investors an opportunity to meet and listen to multiple LNG related management teams, all in one room. "The idea here is: How do you play what should be a pretty big theme for the next 20 years?" says Schaefer. "You're going to have to look at drillers, frackers, and upstream support companies such as fluid companies, and chemical companies. Canada has lots of smaller, highly leveraged players with futures outstanding SEPTEMBER 2013 in public. So we're bringing in as many teams as possible to present to investors and make their case as to why over the next 10 years they're going to have a huge tail wind with LNG development." Companies featured at the conference include: producers Angle Energy [NGLTSX], Bellatrix Exploration [BXE-TSX], and Painted Pony Petroleum [PPY-TSXV]; fluid management companies Canadian Energy Services [CEU-TSX], and Secure Energy Services [SES-TSX]; downstream construction services provider Enterprise Group [E-TSX]; and upstream handler Entrec Corporation [ENT-TSXV]. Accompanying Schaefer at the conference will be other notable speakers, including Nathan Weiss of Unit Economics. Weiss has been closely following the LNG sector for three years, and knows the industry inside and out. His stance on LNG is that BC LNG is the best situated in order to deliver production to Asia, and for people to make money on it. Through the ensemble cast for the event that Schaefer has assembled, investors should walk away from the conference with a much better understanding of the potential LNG brings. The theme is much like Schaefer's subscriber service and newsletter itself. "I spend 50 to 60 hours a week researching stocks and trying to figure out how we can all make money," says Schaefer. "I put my own money on the line, trading and sharing in very simple language with retail investors in mind and how they can make money from some of the big trends going on. These include the shale oil boom, and now the LNG game. I try to give the little guy a lift, by helping them get around all the analysts and sell-side bullishness, in order to give them an independent view." According to Schaefer, too many illadvised investors put too much into the really cheap stocks. By doing so they ignore the bigger more reliable players, in hopes of big payoffs that rarely come for the micro-caps. "The bigger caps are already doing well, and the Street trusts them to continue doing so. I look at big caps like Golar [GLNG-NASDAQ], who will be the first shippers of LNG off the west coast, likely in Q2 of 2015," says Schaefer. "They already have the approvals they need, thus the likelihood of their project's completion is very close to 100%. They should see a monstrous increase in their dividends over the next two to three years as all of their new LNG ships come online." While Schaefer points to Golar as a prime example of a beneficiary of the LNG revolution, he also looks at the takeover potential of the producers presenting at his conference. "Painted Pony and Bellatrix are two great examples of companies with very large gas prospects in place, and a lot of upside potential. They're trading at historically low valuations right now, and are perfect targets for any of these big LNG players looking to secure more gas to go to the Asian buyers," says Schaefer. "Angle is in a similar position, but not quite as big. They do, however, have a lot of gas resources available and a strong technical team. If they wanted to go with any deal and get it done, they're ready for anyone who wants to come in." There are only 250 seats available for the all-day event. Schaefer's subscribers can register for free, while tickets are $49 for non-subscribers and includes two months of Schaefer's service (free after proven attendance). n see: http://ogiblngconference.com/ www.resourceworld.com 49

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