STEALTH ENERGY SLH:CN

http://www.youtube.com/watch?v=DAWvMN6MGgY

 Penny Stock Profile ....

SLH PROFILE

Crude oil prices may soon rise to $100 a barrel due to increasing costs of exploration and production, and businesses should be prepared for higher energy prices than what they were used to in the last 20 years, Reliance Industries chairman Mukesh Ambani said on May 14th.

"Experts talk of resilient oil growth, sluggish refining growth and higher marginal costs for new discoveries and production. All these factors are no doubt true, but I believe that the petrochemical industry will have to keep reinventing itself in response and prepare itself for a higher energy price than what it has been used to in the last two decades," Ambani said, addressing the 10th Asia Petrochemical Industry Conference here.

"$80-$100 is a norm in this ever changing global dynamics and we have to reset our thinking rather than hoping that oil prices will go back, and energy prices and feedstock prices will go back to what we were used to in the last two decades," he added.

But putting aside the reasons for the potential rise in crude, one of the major concerns for Americans is the ongoing reliance that the Country has on foreign energy. The United States consumed 19.5 million barrels per day (MMbd) of petroleum products during 2008 making that country the world’s largest petroleum consumer. The United States was third in crude oil production at 4.9 MMbd. To highlight the importance of U.S. domestic energy needs, In 2008, the United States produced 10% of the world’s petroleum and consumed 23%. The U.S. was trying to close the reliance gap by increasing offshore drilling, but with the Gulf of Mexico Oil Spill that has turned out to be not only an environmental nightmare, but a political and social problem, as such, the U.S. government is taking a second hard look at offshore drilling and is limiting expansion.

With that being said, there is an even greater demand for domestic Oil & Gas from conventional drilling methods, and one Canadian Company, with a U.S. subsidiary has recently stepped up to the plate with some substantial Oil & Gas Properties currently in Wyoming and Montana.

This junior Oil & Gas Company is not only holding onto 50,000 net acres of prime Oil & Gas real estate but is still on the hunt for further acquisitions. This Company is soon to be cash flow positive and if need be, will soon be able to grow purely on income derived from their Oil & Gas revenues. They have a seasoned and senior management team and have properties that are not only in production, but are in close proximity to past significant Oil & Gas finds.

While one may think this Company is highly priced based on their strong fundamental prospects, the stock price tells the story of an undiscovered Oil & Gas Company that has not had the spotlight beamed on them, until now. Stealth Energy Inc. (CNSX:SLH) was incorporated in February 2006 with the objective of oil & gas exploration, development and production.

The Company intends to develop its own properties and acquire oil and gas properties primarily in the States of Montana and Wyoming, USA. Stealth has already acquired leases in both states and is systematically continuing to acquire gas leases.

A wholly owned Montana subsidiary, Stealth Energy USA Inc. has been incorporated to hold the company’s oil & gas properties.

The Company trades on the Canadian National Stock Exchange (CNSX), Canada's newest stock exchange and in Frankfurt under the symbol "S16". This is the first time that AllPennyStocks.com has spotlighted a Company trading on the CNSX, which is why we have included some information on the exchange as well.

CNSX is an innovative new stock exchange for trading the securities of public companies. CNSX’s unique market model matches enhanced disclosure and streamlined issuer regulation with leading edge technology and comprehensive regulatory oversight to meet the needs and characteristics of public companies, their investors and investment dealers.

Public companies now have a stock exchange designed to maximize liquidity, while investor confidence is strengthened through enhanced disclosure and the highest possible standards of regulatory oversight. For more information on the CNSX, investors are encouraged to view the exchanges website located at www.cnsx.ca.

Even with the Company currently trading on the CNSX, there are plans to migrate to a more senior exchange, however exact timing and plans have not been formally announced as of yet.

As was mentioned previously, The Company has developing and producing properties in Montana and Wyoming, with their initial focus on Montana. The Company was founded in 2006 and in the few short years has built a portfolio of over 50,000 net acres of land in the above mentioned states.

The Company's prime focus property in Wyoming is their Teapot Dome Oil Field located approximately 25 miles North and slightly East of Casper, Wyoming and 8 miles Southeast of Midwest, Wyoming. Oil production began in the 1920’s and due to the Teapot scandal, production really only became serious some 30 years later. This area is known as The Powder River Basin, which occupies most of the Northeastern quarter of Wyoming and part of Southeastern Montana.

Presently the field is producing on primary recovery and it is estimated that less than 20% of the original oil in place from the Shannon Sandstone and less than 10% of the Shale Oil has been accessed. Based on the engineering reports, which incidentally, are not '51,101", the Company is sitting on 7.5 Million barrels of recoverable reserves, which on its own justifies a market cap for SLH of way more than roughly $9 Million, which it is currently at. This Oil is high gravity, sweet crude, which is highly sought after.

Meanwhile in Montana, the Company's neighbouring properties have produced in excess of 20 billion of cubic feet of gas. Also, Lake Basin, which is part of what the Company owns has also produced several billion cubic feet of gas. To get this huge gas reserve flowing, the Company is currently building a 6 inch gas pipeline which is going to be 12 miles in length to the main sales pipeline. This hook-up is expected shortly as 10 out of the 12 miles have already been completed, at which time the Company will be in gas production mode. This is very significant for the Company because it means that they have the revenues to drill gas wells for the next decade, and with the gas wells being shallow, their drilling is extremely economical.

As if the Company's fundamentals weren't strong enough, they just announced after the bell today that they have now scheduled the start of their summer drilling program for 1 July 2010. Initially the first phase will comprise of 3 wells in the Sumatra Oil Field, with the main target of the Tyler formation being at approximately 4,500 feet.

John Campbell, CEO and President of Stealth Energy stated “The weather has finally allowed us to mobilize and the equipment we will be using is the Ellenberg Rig #11. As the Sumatra, in the neighbouring leases, has in the past been a prodigious producer of in excess of 100 million barrels, we are looking forward to the results with interest”.

The Company is already in place with a significant land package in two U.S. states, they are producing oil and soon will be a gas producer once their pipeline is fully setup. If this summer drilling program is even slightly optimistic for the Company, it could mean a significant oil find that could transition Stealth Energy from a junior oil & gas player to a major producer.

Looking at the stock from a technical perspective, the stock looks like it could be on the cusp of another uptrend. Looking at specific technical indicators, the MACD seems to have recently performed a centerline crossover. A bullish centerline crossover occurs when MACD moves above the zero line to turn positive. This happens when the 12-day EMA of the underlying security moves above the 26-day EMA. The RSI and Stochastics are also both showing the emergence of an uptrend that could only intensify as a result of the press release that was just announced.

Looking at our latest video chart prepared by 123LearnToTrade.com, a strong support and resistance channel has recently formed. According to the video chart, $0.14 seems to be a strong support level and $0.24 cents looks to be the resistance level. With the recent run-up in volume and price, as well as the news announced just after the bell, there could still be significant room for upward movement, especially if the resistance level is broken. To view the technical analysis video chart on SLH with further insight on what can be expected from a technical standpoint, click here.

We always encourage investors to place stop-losses in case an investment doesn't go the way they want, so depending on risk tolerance, stop losses around the above mentioned level is encouraged. Also, as we always mention to all our investors, these are only our interpretations of SLH`s stock chart and as always, we encourage all investors to do their own due diligence and consult with a financial advisor prior to making any investment decisions.

The fundamentals for Stealth Energy Inc. (CNSX:SLH) are quite strong and the technicals are also showing promise. This Company, trading at a market cap of under $10 Million could soon be on the radar of many other investors as news spreads on their significant property holdings and future revenue producing possibilities. For these reasons and others, AllPennyStocks.com decided to spotlight the Company as their latest Canadian Spotlight, and investors are encouraged to do their own due diligence on the Company.

INVESTMENT HIGHLIGHTS

• Crude Prices Expected To Rise. Crude oil prices may soon rise to $100 a barrel due to increasing costs of exploration and production, and businesses should be prepared for higher energy prices than what they were used to in the last 20 years, Reliance Industries chairman Mukesh Ambani said on May 14th.
• Significant Oil Reserves. Based on the engineering reports, which incidentally, are not '51,101", the Company is sitting on 7.5 Million barrels of recoverable reserves, which on its own justifies a market cap for SLH of way more than roughly $12 Million, which it is currently at. This Oil is high gravity, sweet crude, which is highly sought after.
• Current Foreign Energy Dependence Problem In U.S. The United States consumed 19.5 million barrels per day (MMbd) of petroleum products during 2008 making that country the world’s largest petroleum consumer. The United States was third in crude oil production at 4.9 MMbd. To highlight the importance of U.S. domestic energy needs, In 2008, the United States produced 10% of the world’s petroleum and consumed 23%.
• Significant land Holdings With Interest In Further Acquisitions. This junior Oil & Gas company is not only holding onto 50,000 net acres of prime Oil & Gas real estate but are still on the hunt for further acquisitions. This Company is soon to be cash flow positive and if need be, will soon be able to grow purely on income derived from their Oil & Gas revenues.
• Rapid Growth. The Company has developing and producing properties in Montana and Wyoming, with their initial focus on Montana. The Company was founded in 2006 and in the few short years has built a portfolio of over 50,000 net acres of land in the above mentioned states.
• Potential For Major Gas Find. In Montana, the Company's neighbouring properties have produced in excess of 20 billion of cubic feet of gas. Also, Lake Basin, which is part of what the Company owns has also produced several billion cubic feet of gas.

OVERVIEW

Stealth Energy Inc. was incorporated in February 2006 with the objective of oil & gas exploration, development and production. The Company intends to develop its own properties and acquire oil and gas properties primarily in the States of Montana and Wyoming, USA. Stealth has already acquired leases in both states and is systematically continuing to acquire gas leases.

http://www.stealthenergy.ca/

Water And Co2 Flood At Teapot 2010-03-04 Stealth Energy Inc. (the “Company”) is pleased to report that it has now received a preliminary proposal from the U.S. Department of Energy with respect to the introduction of both a water and CO2 flood at the U.S. Naval Petroleum Reserve #3 that is the adjoining and immediate neighbour to the Company’s Teapot Dome property in Wyoming, USA. The proposal incorporates the proposed injection site and will be followed up by more definitive documentation in the near future. The Company geologist, Jeff Wingerter is now in ongoing discussions as to the timing for the implementation that is anticipated to commence late spring of this year.

Focused on building shareholder value.

 

Management Team

Robert Gardner Q.C.

Chairman of the Board

Mr. Gardner has served on the boards of several public mining companies and specializes in acquisitions. He was educated at Cambridge University and is called to the Bars of British Columbia, England and Wales.

John Campbell

CEO / President

Has been involved in the O&G exploration in the private sector for the past 5 years with particular emphasis in the states of Wyoming and Montana.

R. Stuart Angus

Director

Mr. Angus is an independent senior business adviser to the mining industry. He was most recently Managing Director - Mergers and Acquisitions for Endeavour Financial. Prior to joining Endeavour Financial, he was a partner at the Canadian law firm Fasken Martineau DuMoulin and headed that firm's global mining practice. For over 25 years, Mr. Angus has focused on significant international exploration, development and mining ventures, and all aspects of their structuring and finance. Mr. Angus is also presently a director of Nevsun Resources Ltd. and Plutonic Power Corp.

Brian Smith Q.C.

Director

Mr. Smith is a practicing lawyer with Gowlings, Lefleur, Henderson, LLP of Toronto, Ontario. He is the past Minister of Energy and Mines, past Education Minister and past Attorney General of the Province of British Columbia, Canada, and is also past Chairman of BY Hydro and past Chairman of Canadian National Railways.

Michael Farley Ph.D.

Director

Investment banker based out of Geneva, Switzerland and Montreal, Canada. Was a diplomat for the Canadian Government prior to involvement in both the private and public financial sectors.

Yuling Zhou

Director

Ms. Zhou graduated with a Master of Economics degree in Wuhan University, China in 1999. After graduation, she worked at Hu Bei Securities Company as a securities analyst and became a director in 2000. Between 2000 and 2004 she was a director of Yin He Securities Company in Shenzhen City, China, specializing in corporate finance. Since 2003 she has continued to work with senior financial institutions in cities in mainland China and Hong Kong.

David Yue

Director

Mr. Yue is an international financier residing in Canada, specializing in funding start-up and junior companies in Hong Kong and North America. During the last 20 years in Canada, he has been active with his own private enterprises in sizeable real estate and infrastructure developments in China and Canada. In addition, he has been the founder and director of several TSE listed resource companies.