Pacific Asia Petroleum: Extracting Value for Shareholders


Pacific Asia Petroleum, Inc. (PAP) was started by a former Texaco executive, Frank C. Ingriselli. It has taken some time, but the company is starting to make some deals and the stock has correspondingly made some significant moves to the upside. These moves have come as information about, and the execution of, the company's plans have come to light. I believe that the stock will continue to move upward and here's why.

The first big deal that PAP recently made was to gain a majority interest in the Oyo Oilfield in Nigeria. Although not without costs, the deal was not dilutive since the company had no previous income. The oilfield will generate income for the company.

The stock is now dependent on the price of oil and with oil prices rising, income is going to be much higher than projected.

The most interesting part of this deal to me is not the oilfield interest, but the additions to the board of directors which include:

  • A former president of the US operations of Shell Oil (NYSE:RDS.A)
  • An ex-mayor of Houston
  • The former Secretary of Energy from '93-'97 for the Clinton Administration

Why is this interesting? These are major oil industry insiders. They would not be putting their time, money and effort into a firm that they did not have faith in. I think this foretells something big coming in this company's future. If these industry insiders are behind this company, shouldn't you be?

It seems that the first research firm to cover PAP agrees with me that the stock is "significantly undervalued." Emerging Growth Research, LLC is saying that the stock "is still relatively unknown among the investment community." Have you ever been in a stock BEFORE Wall St. has?

After the stock closes above $5, I believe that mutual fund buyers will also bring a lot of buying interest.

This stock is most certainly a stock to keep a close eye on. Ever wonder what those 10,000% return stocks look like BEFORE they made those returns.

I think this is what they look like.

Disclosure: Author holds a long position in PAP

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