Topic: How To Invest

I just want your comments on BlackPearl Resources. Thanks for your advice.

Article Excerpt

BlackPearl Resources, $3.07, symbol PXX on Toronto (Shares outstanding: 295.8 million; Market cap: $908.1 million; www.blackpearlresources.ca), produces and explores for oil, mainly in Alberta and Saskatchewan. The company now operates heavy oil properties, but it aims to expand into the oil sands. BlackPearl’s main properties are Onion Lake, Mooney and Blackrod. Blackrod is a planned steam-assisted gravity drainage (SAGD) oil sands development in northern Alberta’s Athabasca oil sands region. Extracting the tar-like bitumen from oil sands is much more expensive than conventional oil wells. However, new technologies, such as SAGD, are lowering costs in the industry. SAGD systems inject steam into the ground to melt the bitumen. This makes it easier to pump to the surface. BlackPearl believes the Blackrod property has the potential for an 80,000-barrel-per-day SAGD development. Onion Lake is a heavy oil producing property in Saskatchewan’s Lloydminster area. The property also has the potential for a 12,000-barrel-per-day SAGD development on part of the site. Mooney is a heavy oil property…