This Small Oil Producer is Ripe for a Takeover… Here’s How to Profit

by Sheena Martin, Contributing Editor Friday, November 20, 2009

Takeovers are big news in the market at the moment.

In fact, did you know that takeovers have the biggest one-day gain in stocks for any asset?

As my colleague – and takeover expert – Louis Basenese says, they’re “some of the safest companies you can own. According to FactSet Merger Stat LLC, the average one-day return for shareholders of the target company is 48%.”

Furthermore, Louis says, “Industries naturally go through cycles of consolidation – waves of mergers, acquisition and takeovers.”

One industry riding this wave as it comes out of recession is oil. And I have a takeover target making strides in oil exploration that could put money in your pocket in a few months

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Sunergy, Inc. is a production oriented junior mining company focused on the evaluation, acquisition, exploration, planned operation and advancement of gold/silver/diamond development. The company controls 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license. The concession is surrounded by several operating mines and is adjacent to Newmont Mining’s property.

The Ofin River flows through the eastern portion of the concession and there are numerous artisan pits ready for testing and evaluation for near term production. The Ofin River is known for good alluvial gold production. Artisans usually recover about 30% of the available gold through primitive hand methods, leaving 60-70% to be recovered by modern mechanical operations.

A preliminary survey by Geodita Resources LTD, Ghana indicates that the Nyinahin Concession has significant potential for lode gold mineralization and for recovery of alluvial gold. There are 3 major anomalous zones: Owusbukurom anomaly in the center Ntoboroso anomaly

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DrStockPick.com Watch List!

My Picks for Tuesday November 10, 2009 are:

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GSS, Golden Star Resources, Ltd.

GSS holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa open-pit gold mines through subsidiaries in Ghana. In addition, GSS has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America.

** GSS reported another record quarter in terms of gold sales, revenues and operating cash flow. GSS

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Clenergen Corp. is focused on installing, owning and operating small to medium-sized distributed environmental power systems (DEPS) which will sell power to companies, power grids and local municipalities around the world.

The company is looking to produce a renewable and sustainable source of electricity through advanced gasification technologies. Clenergen is unique in the biomass energy industry in that their goal is to power their power plants using biomass crops which they will produce on a commercial scale at a cost of production similar to the cost of coal. The company will do this by using high-density, short-rotation biomass crops such as bamboo and the Marjestica tree.

With regard to their biomass production, Clenergen has taken on a sublease of 150,000 acres of savannah grasslands in the South American nation of Guyana. In Guyana, there will be plantations of bamboo and Marjestica undertaken

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Gold producing company Newmont Mining Corporation (NEM) recorded a net income of 79 cents per share in the third quarter, beating the Zacks Consensus Estimate of 60 cents. Year on year, earnings grew by a robust 88% on strong gold and copper prices as well as lower costs. Revenues for the quarter climbed 50% to over $2 billion, driven by a 29% rise in gold sales to $1.6 billion and about a fivefold increase in copper revenues to $396 million. Newmont sold 1.7 billion ounces of gold in the quarter, up 15% year over year. The company sold 141 million pound of copper compared with 44 million pound in the same period of the previous year. On a regional basis, gold sales were slightly above expectations as higher-than-expected sales at Yanacocha in Peru, Batu Hijau in Indonesia ...

Hess Corp. (HES) reported third-quarter earnings of 74 cents per diluted share, easily beating the Zacks Consensus Estimate of 54 cents. However, the result was much lower than the year-ago earnings of $2.37. Before adjusting for one-time items, the company posted earnings per share of $1.05.  The Exploration and Production (E&P) segment posted a $397 million profit in the quarter, compared to $699 million in the year-earlier quarter. Results were negatively impacted by significant declines in commodity prices and other incremental costs.  Quarterly crude oil and natural gas production, on an oil equivalent barrel basis, was 420,000 barrels of oil equivalent per day (MBOE/d) - 74% liquids and 26% natural gas - up more than 16% year-over-year and more than 3% sequentially.  Worldwide crude oil realization per barrel during the quarter was $56.07 (including the impact of hedging), up 14% sequentially, but down approximately 40% ...

ExxonMobil (NYSE: XOM) Has the Eye of the Tiger

Tony Daltorio, Investment U Research

ExxonMobil (NYSE: XOM) is one of those companies people love to hate.

The firm racks up billions in profits each year, yet it’s been sluggish to develop green technologies (although that’s slowly changing now), despite a $600 million investment into an algae-based biofuels project.

Some critics, including major shareholders, also criticize the company’s overly conservative management. They say that Exxon has a poor strategy for future growth and is too slow to replace its reserves.

With limited investment into finding new sources of oil and gas, ExxonMobil has instead spent $109 million to buy back shares and increase dividends by 58% over the past five years.

Last year alone, Exxon returned $40.1 billion to shareholders through buybacks and dividends, amounting to 154% of its capital

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CNOOC Ltd. (CEO) expects to sign a deal with Norway’s StatoilHydro ASA (STO) soon to buy stakes in some deepwater exploration blocks in the U.S. Gulf of Mexico (GoM). StatoilHydro is putting five prospects on the market, out of its more than 400 leases in the U.S. GoM. The company had acquired these assets, with 100% working interest, in 2007 and 2008 lease sale. This deal could mark the introduction of China's foray into the U.S. GoM. The GoM remains one of the most abundant areas of the world for oil discoveries, with billions of barrels of crude believed to be trapped beneath the seabed. Chinese companies are pursuing assets acquisitions abroad to cope with the country’s increasing demand for oil and gas. But they are facing difficulties in tying up deals partly because the oil-rich countries want greater control over their resources. We ...

Anadarko Petroleum Corporation (APC) today drilled another appraisal well - Mahogany-4 well - in the West Cape Three Points Block offshore Ghana, in the eastern part of Jubilee field. The well witnessed more than 140 net feet of predominately oil pay in high-quality, stacked reservoir sands.  The Mahogany-4 appraisal well is a part of the company’s delineation program that extends the potentially productive area of the Jubilee field beyond the existing unit boundaries. The well intersected the main Jubilee reservoir and also encountered new deeper oil sands that the partnership plans to evaluate through future exploration and drilling activity.  The well was drilled to a total depth of about 12,000 feet in approximately 3,540 feet of water by the “Atwood Hunter" semi-submersible drilling rig. Following the completion of the Mahogany-4 well, the rig will drill a development well in the Jubilee field. Following that it will ...

Lake Victoria Mining Company yesterday reported the recent use of a new trenching program for locating new quartz veins at the company’s Singida Gold project in central Tanzania. The company has announced that detailed mapping and trench wall sampling has commenced as the new project suggests that three new veins may have been exposed in the trenches.

Roger Newell, Lake Victoria’s president stated, “Within only 20 meters to the north east of the already defined 5km gold vein trend we encountered 3 new veins within 1 to 2 meters of the surface, right where our interpreted magnetic images had indicated. So far, all our exploration work at Singida has provided positive results, and these latest trenches suggest that new veins appear to be present and running parallel to the main structure that we sampled from underground shafts. This could in fact mean that our potential resource could expand by 2 or

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