Profile:
666 Burrard Street
Suite 3400
Vancouver, BC V6C 2X8
Phone: 604-639-3118
Web Site: http://www.torrentenergy.com
DETAILS
Index Membership: N/A
Sector: Services
Industry: Business Services
Full Time Employees: 1
BUSINESS SUMMARY
Torrent Energy Corporation, through its wholly owned subsidiary, Methane Energy Corp., engages in the acquisition, exploration, and development of coalbed methane properties. It holds leases to approximately 70,000 acres of coalbed methane lands in the Coos Bay region of Oregon. The company was formerly known as Scarab Systems, Inc. and changed its name to Torrent Energy Corporation in 2004. Torrent Energy is based in Vancouver, Canada.
------------------------------------------------------------------------------------------------------------------------
TREN has been in a consolidation period for the past 4-5 months. The start of a break out might have already happened.
News released on Friday: "Torrent Commences Completion Operation on Its Radio Hill and Beaver Hill Pilot Projects and Searches for Joint Venture Partner"
On the Positive side:
- Cash Flow: $2.5 M
- Current Ratio: 3.5
- Estimated growth: +84.6%
On the negative side:
- the company has never seen a net income year
I think TREN has a lot of potential... any other opinions are welcome!
Well, I did decide to put my money where my mouth is a bought 130 shares of TREN @ 2.25 today... let's see where that takes me :)
Well, after seriously doubting myself on TREN, I'm thinking this might not be as bad a move as I thought. TREN has been up on huge volume for the past 2 days. It closed above the 2.43 resistance yesterday. I think this could be a nice run.
TREN may have potential........it is one of several earningless cbm stocks that are being endlessly pumped by the likes of Mike Schaeffer (Wealth Daily, Pure Energy Report, etc).
The idea with coal bed methane, a waste product, is that it can be converted into a diesel-type fuel. Look at the RTK and SYNM threads.
Schaeffer has been pretty good with his picks and these stocks are picking up steam this week. Also look into SCU which has emerged from its coma today.
Again, these are all based on speculation. The gas & oil is in the ground, they just have to get it out and process it - easier said than done
Quoteit is one of several earningless cbm stocks that are being endlessly pumped by the likes of Mike Schaeffer
Thanks for you input snowcat... always appreciated. What is/are cbm stocks? and who is Mike Schaeffer?
I noticed some insider buying in the past week. January 24, 25, 26 and 27.
http://www.secform4.com/insider/showhistory.php?cik=TREN
Is something about to happen?
Livana, good pick ;)
But TREN is trading in OTCBB Market, please post it to penny stock picking board ;)
Terlisa,
Thanks :)
I noticed that TREN was an OTCBB stock, but too late. I apologize. Is there a way to move the thread to the Penny board? I wish I did not have to start another thread on this...
CBM is coal bed methane - old coal fields produce methane gas that is burned off constantly. It is expensive to transport the methane, so they just burn it. around the world, they burn the equivilent of millions of barrels a day in this natural gas. Putting it to good use is always a concern. One method is converting it to a liquid fuel - like SYNM and RTK are doing or freezing it and transporting it in tankers like MCX or building pipelines which are costly and environmentlally frowned upon.
Mike Schaeffer reports on energy stocks - SCU, TREN, SYNM, RTK, XSNX, UTS.to and may others. He has been very good with most of his pix. He pumps a lot.
Here is one of his links:
http://www.energydaily.net/
He also does a free newsletter, WealthDaily, which I like:
http://www.wealthdaily.net/
also check out the thread for CWPC.ob on 3 sox on fire, an oil sands play.
snowcat,
I never properly thanked you for your explanation on cbm stocks and Mike Shaeffer.. so thank you.
TREN has been doing great in the past 2 weeks. Up almost 50% since 1/28.
One has been made on RagingBull "Attributing Tren's Move": http://ragingbull.lycos.com/mboard/boards.cgi?board=TREN&read=891
Record volume has been posted today (2.3 M) that had not been seen since last June.
I've been trying to get into TREN since yesterday after reading the information I found from Mike Schaefer, Editor, Energy & Capital on February 15th. It was the following:
"You already know that oil is trading at record highs. But if you think oil is out of control, you should take a look at natural gas.
Natural gas supplies in North America are declining quickly, and at the same time demand is going through the roof.
That means we're faced with a major opportunity.
How big? Well, my last two picks in the sector went nuts, to the tune of 1,742% and 1,250%.
If you missed out on those two don't worry, it's about to happen all over again.
You see, we're facing a dramatic natural gas shortage in North America. Believe it or not, North American natural gas production peaked in 1973.
And that's a big deal, because nationwide the amount of natural gas burned to generate power rose 56 percent from 1993 to 2002, outstripping the growth of coal and oil in power production, according to the Energy Department.
And get this: The US consumes 28% of the earth's natural gas. But unlike oil, which we import from 25 nations, 99% of our gas is produced in North America.
But supply is a big question mark. Some analysts predict a production decline of more than 70% over the next ten years.
So it's odd that no one's talking about natural gas. Everyone seems to be focused on oil.
But, the right investment in certain natural gas companies can be incredible. Don't take my word for it, look at what my readers have to say:
"Michael,
I wanted to thank you for your recommendations for the last 2 years. I currently have made a profit since 1/1/03 of $59,222.41. I have kept track of all trades and decided to calculate the totals today."
--Jerry
But there's a reason so few investors know about these blockbuster stocks. They're unconventional gas companies.
These companies extract gas unconventionally, by what's called coal bed methane. I know quite a bit about it, because a big part of the CBM gas extraction in the US goes on where I live in Wyoming.
You see, natural gas is in huge demand, and the conventional sources are tapped out. But these tiny CBM companies are finding lots of natural gas.
And that's why these stocks are going nuts!
It gets better though, because I've found the next big winner, another tiny coal bed methane company, operating right here in the US.
The company is in the early stages of its first production testing campaign. That means, over the course of the next 3 months we'll have a good idea of just how much gas this tiny company can produce and sell.
Based on the reserve estimate, that could be very big number.
See, back in the early '90s this very same property was drilled on a limited scale. The firm that did the work brought in an industry-leading engineering group to determine just how much gas was in place.
Plus, according to the engineering group, this small outfit could have 780 billion cubic feet of gas already locked up. Based on what I know about the Basin, that number could surpass 1 trillion cubic feet later this year.
That much gas is worth $1 billion. With only 15.7 million shares outstanding, well, you can do the math.
That's why it's imperative that we act now.
You see, the same thing happened last time. Long before the news comes out, the stock moves in anticipation.
If you had put $10,000 into SPI on my initial recommendation, you've got a gain of over $160,000. Not a bad chunk of change.
I've seen enough of these CBM plays to know when we're on to something big.
There are already some major players in the area, including Northwest Natural Gas and Puget Sound Energy. Considering that there's over 9.2 million people in the Pacific Northwest, it's no surprise state and local governments are bending over backward to help bring these reserves to market.
Before that happens, we learn just how big the potential is. But the clock is ticking...
I've prepared an in-depth report on the situation and the company I think is our next big winner in the natural gas markets. The report, called White Gold, is yours, free.
Just follow this link: White Gold to get your copy, and I'll throw in a free subscription to my daily investment journal, Energy and Capital. That way, you'll get regular updates from me and my team.
And, of course, you'll get all of the details on my next CBM winner.
Regards,
Mike Schaefer
Editor, Energy & Capital
White GoldPS: Over the next three months we'll see just what production levels this company will reach. As we get there, share should also reach new levels."
And information in the white gold report:
Torrent Energy Corporation (TREN: OTCBB) is a Colorado-based energy company that, through its wholly owned subsidiary, Methane Energy Corp., is actually on the verge of production.
The company has over 100,000 acres in the Coos Bay Basin on the Oregon Coast. And believe me, it has all the makings of a blockbuster.
In fact the Coos Bay Basin is home to a vast amount of natural gas—potentially 2.4 trillion cubic feet.
The bottom line is, within the next few months, we'll see several vital milestones reached as the company proves its concept at Coos Bay. Right now they're in the production testing phase. Soon, we'll have a new resource estimate from a third party engineering firm, which will tell us how much gas they expect the company has.
Then, within the next 60 to 90 days, we'll get results from the company's test wells, which will give us rock-solid proof on potential production volumes.
Now, here's the key. All of these milestones are key to a company's valuation. And it's what investors, and the institutional investing community, look for.
As a result, I expect shares to explode.
You see, the company has solved the geology. They've taken the risk out of the play. Now it's just a matter of money and engineering.
And I can tell you from past experience...when a project gets to this stage, things happen quickly. With Torrent, we're still at the point where the market hasn't really picked up on what the company has.
When it does, look out.
The Property
I visited the property when I first heard about Torrent, and I can verify that the company has a tiger by the tail.
The first thing you notice upon descending into the Coos Bay area is the lush forests, and striking coastline. It's beautiful.
The Coos Bay Basin is located along the Pacific coast in southwestern Oregon, approximately 200 miles south of the Columbia River and 80 miles north of the California border. The onshore portion of the basin is elliptical, covering over 250 square miles. Based on existing data, over 100,000 onshore acres in the Coos Bay Basin are prospective for coalbed methane and conventional natural gas production. Over the past two years Torrent has amassed a land package in the basin of 112,000 acres. They've basically locked the whole thing up. The Coos Bay Basin is a structural basin formed by folding and faulting that preserves a portion of coal-bearing sediments deposited on an extensive, middle Eocene-age, swampy coastal plain. The coal-bearing sandstones and siltstones of the Upper Eocene Coaledo formation are estimated to form a section approximately 6,600 feet thick. The Basin has multiple seams of coal, many of which contain coalbed methane.
In fact, we visited an outcropping of one of the coal seams, which contains the "Y" coals. The point where the seam was exposed looked to be at least 20 feet thick. What was amazing to me, however, was that this same coal seam dips underground at a high angle. Torrent has encountered this same coal seam at one drill location about five miles from the outcropping. At that point, the seam is about 1,500 feet underground.
This is classic CBM ground.
Natural Gas Market The Port of Coos Bay and surrounding area just came on stream with a brand new pipeline serving residential and commercial customers. The project, managed by Northwest Natural Gas, has created infrastructure to one of the largest population centers on the west coast without natural gas service.
I met with the project manager while we were there. His knowledge of the area, and praise of the Torrent team, spoke volumes to me. This pipeline will provide a ready market for gas from the Coos Bay Basin project. The pipeline will be connected to the Northwest Pipeline system, allowing access to the lucrative Pacific
Northwest markets.
It's not only the local gas company that has welcomed Torrent with open arms. The Coos Bay region is an industrial area. Historically there's been a lot of logging and other extractive industries. And as a result, the community as a whole has embraced Torrent.
This is vitally important. As a result, the transition from exploration to production should be very, very smooth. Coal Gas Resource
Although largely under explored to date, the Coos Bay Basin (Torrent) has the potential to become a significant producer of pipeline quality, natural gas.
Current resource calculation shows just over 1 TCF of gas in place. The company expects a new third party engineering report on the resource, which will certainly grow. This figure will be based on Torrent's drilling records over the past 18 months, and by a smaller land package than they currently have.
And believe me, these things get noticed not only by the investing community, but by larger companies as well.
And that's why I see Torrent as a ripe takeover candidate. Either way, it's perfect timing for us.
The Next Step
Typically, the way these plays unfold can be summed up in one word: Quickly. That's why I'm recommending Torrent Energy (TREN: OTCBB) for immediate purchase.
As you know, the company is already underway with its drilling and exploration program, so I expect a steady flow of news over the course of the next month. And it's this news that drives the market.
A few more things to consider:
1 Trillion cubic feet (tcf) of gas has a gross value of about $5 billion at a sales hub. In the ground 1 tcf of gas is worth about $1 billion. Torrent has a little over 17 million shares fully diluted. You can do the math. If things work out it is going to be a very big number.
We're talking 1,000% potential.
But that is our bread and butter here at Energy & Capital. We are constantly on the lookout for those special 10 for 1 opportunities. Torrent Energy most definitely fits the bill. I strongly suggest you check out the company's website at www.torrentenergy.com and call Investor Relations at the number listed in this report.
Keep this in mind: Pure CBM companies with good technical expertise, good management, access to capital, and a relatively cheap price are as rare as hen's teeth. There just aren't any out there. The challenge for investors going forward will likely be to not sell too soon.
The supply demand fundamentals for the gas market in North America are extremely bullish. Gas prices are high and going higher. Interest in pure gas explorers and producers is going to grow. We are still in the early stages of a market that's going to explode, if you'll pardon the pun. Keep this in mind while making your investment decisions.
Of course, while in Coos Bay I met all of the management at Torrent. Everyone involved in the project is top-notch. The company is stacked with geologic expertise, not just in general, but pertaining to the Coos Bay basin in particular.
A Final Word
Just last week the company crossed a major milestone, by successfully perforating the Radio Hill #1 well....the company's first production test well.
The well was perforated over several individual coal seams consisting of a total of 35 feet of coal at intervals ranging from 2,735 to 3,950 feet of depth. And here is the best part, measurable gas was flared at the site upon the completion of the perforation operation and this was without any stimulation. Let say that again so everyone understands how this works. The company drills the well and then inserts a 7 inch metal casing into that well. They then set off explosive charges at the level of the coal seams and blow holes in the metal casing. This allows water and gas to flow into the well bore out of the coal seams. In this case, and it is just what you want to see, methane gas came out of the coal seams and up the well bore where it was lit on fire and flared as it came out of the well. You've probably seen wells being flared before, perhaps on television. It's a way to burn off the excess gas rather than pumping it into the atmosphere. The company will stimulate the coal seams in some fashion, probably with nitrogen, and flow test this well for 90 days. At the end of 90 days test results will be announced. Those results will give us our first confirmation of economic viability. A successful test confirming economic viability will then allow analysts and investors to start crunching potential production numbers.
I should mention that the results will be available in early April. If everything works out Torrent shares should jump immediately on good news and then over the next 12 to 24 months continue to move higher as more wells are drilled and put into production. Nobody likes to give share price targets, but my back of the napkin estimates easily encompass share price targets, based upon successful test results, of between $10 and $20 over the next 12 to 24 months.
Once again, I don't expect this situation to wait around for us.
Did some checking up and tren looks quite interesting. It's just been running away from me and now I'm not sure ??? ??? Is it a break out, or just way up too high from it's TL? It's also close to it's previous high. One thing I do know my order did not get filled and I missed a nice run :'(
Strang upload of chart, but can't make it work any other way on this computer... :-\
Curious to other's opinions.
Amarens
Not sure what's happening but TREN closed on 8x average 3 month volume on Friday. It opened this morning at 1.92. There has been no PR, so I'm not sure what it's due to.
Nice day for TREN high volume again on no news. Anyone playing this. If it breaks out of the down trend around 2.20 next stop could be 3.50
I sold yesterday at $ 1,92. Small loss. It went below my plan and I did not like that.
Amarens
Heres the reason for the volume increase. I will hold a little while >:D
http://biz.yahoo.com/bw/060509/20060509005255.html?.v=1
Tren on fire!!
Nice open... 2.40, up 17%!!
I'm not understanding today's PR. Anyone care to explain?
Any fundies out there want to comment on this analysis. Of todays news.
Natural gas is $6.70 per thousand cubic feet. That makes today's announcement an $8 billion discovery. Now I know market price and in the ground price are two different things BUT with ~27 million shares outstanding this discovery is worth more than $25.00 per share if the in-ground value is only $0.67 per thousand cubic feet. What am I missing?
Can anybody offer some good fundamental analysis on this stock. TIA
Quote from: pompano on May 09, 2006, 06:27:32 PM
Can anybody offer some good fundamental analysis on this stock. TIA
As far as fundamentals:
TREN has had no revenue for the past 3 years and this bugs me a little. In March 05, their net loss was $2.7M (9 times their net loss a year prior).
They have however, an excellent current and quick ratio, both over 3. Another good thing: they have no long term debt.
They also have a $2.5M positive cash...
Those numbers are all from last year annual report. They should be coming out with this years' annual report soon I would think.
Active in premarket. You have to factor in yesterdays news, no?
Shooting Star reversal? May pick up some more TREN on monday
TREN is featured in QualityStocks.net Daily report (//http://QualityStocks%20Report:%20The%20Best%20OTCBB%20Investment%20Newsletters)
conference call thursday, lets see what they bring us, bought some today at 64
http://biz.yahoo.com/iw/070815/0291285.html
from BabyBulls / 16.08.07
Torrent Energy Corp. (OTCBB:TREN) Market Conditions Create "Two for One" Buying Opportunity in Energy Sector
Yesterday morning Torrent Energy announced that the Company will be conducting an Investor conference call to update the market on their two primary energy targets; Coos Bay, Oregon and Chehalis Basin, Washington State, next Thursday, August 23rd at 1:00 pm EDT. We have included information below on how to get on the call and a link to the release. We are strongly recommending that EVERYONE interested in making money in the energy market take the time to get on this call.
Recent market conditions have hit resource companies particularly hard over the past week or two – with Torrent being no exception. In fact, trading of Torrent shares is currently down approximately 40% to the sixty to sixty five cent range from where they traded just a few weeks ago. When we see a move of this magnitude in such a short time we have to ask ourselves what is happening. Is it an overall market condition - or something more to do with the company's fundamentals. In the case of Torrent Energy, first we looked at the overall energy market. Well, yes – oil has been down a few dollars recently and hovers around $70 a barrel. But we still feel that over the next few years, we will see continued strong demand and price strength for fossil fuels even in an orderly global economy. (If the global geopolitical climate shifts too far from the status quo, say in Iran, or other energy hot spot, we think $70 a barrel could be in the rear view mirror very quickly). Developing countries like China and India are experiencing sharp demand growth as their populations move up the ladder to a more westernized culture, meaning more electricity demand to power infrastructure and more oil to power automobiles. Yes, renewables will play a part as civilization looks to move away from non-renewable energy sources, but in the near term, we don't see the landscape changing too much for the relatively inexpensive energy source of choice – oil and natural gas - humankind's addiction (and present consumption levels) to these energy choices is just too great.
Then we looked at Torrent itself. Has anything changed over the past month or two that would warrant this type of market reaction? After reviewing the Company's press releases during this time and talking with management, the simple answer is no. What has changed is the fact that each week, Torrent gets closer to being in a position to exploit its largest known energy resource by putting their Coos Bay property, which has an independent report as having a potential 1.2 TRILLION CUBIC FEET of natural gas into commercial production. And as we have stated here before, that is a massive energy resource (at $7 per mcf (mcf = 1,000 cubic feet), where the spot price of natural gas is currently), we are talking about $7 BILLION dollars worth of natural gas.
Now of course Torrent will not be able to extract all of the resource, but based on all the data retrieved to date from their test well programs, they have a very good idea as to a range of how much of the energy they should be able to extract - and have backed that number into an estimation of what the present value of the property should be in that case. In a press release dated July 23rd the Company estimates that their Coos Bay property, based on the current data derived from their development work to date would represent an un-risked asset value of between $160 million and $500 million.
This range represents significant upside from here. Taking into account the number of shares currently outstanding at Torrent as of the most recent quarterly report of 40 million, Torrent has a present market cap of $25 million. If they are successful in hitting the low side of their estimate for Coos Bay, we are talking about better than a six bagger from here – and we won't even look at what would happen to the price if they hit the high side of the range (we'll let you do the math on that one). You could even double the outstanding shares from here and we are still talking about a couple of bucks per share (300% appreciation potential)– and that's just the Oregon property. Remember, Torrent has a huge coal bed methane/conventional play prospect up in Washington State as well.
Every once in a while there are excellent opportunities in the market, usually due to the masses over reacting to market forces. It's during these times that money can be multiplied, not just grown. It's not for the faint of heart, and it takes some investment moxy – but we see Torrent as one of these opportunities right here – where you can practically buy two shares today for the price of one just a few weeks ago - and participate in the kind of upside potential covered above. As the old saying goes "bought right is half sold".
So for everyone looking in from the sidelines waiting for a reason to get long the energy market, here's your formal invitation. And for those already in, this looks like a great place to efficiently lower your cost basis, because we strongly suspect Torrent's day in the sun is coming soon, and we don't want anyone to miss the boat on this one when it does!
Torrent's management Investment Update/Conference Call will be held next Thursday August 23rd at 1 p.m. Eastern (10 a.m. Pacific) and will be available on the Internet at www.torrentenergy.com, or by dialing into the teleconference at 1-888-339-9446. Participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days. Like we said above, if you are interested in the energy markets and how you could prosper in the future of coal bed methane natural gas, we strongly recommend you join us for the call.
Here is a link to yesterday's full press release: http://biz.yahoo.com/iw/070815/0291285.html
For more about Torrent Energy you can go to: www.babybulls.com/profile_TREN.htm or from the Company's comprehensive website at: www.torrentenergy.com
nice info
http://www.torrentenergy.com/i/pdf/TRT_CorpProfAug07.pdf