Oilsands Quest: The Rocket Has Left the Platform

There is something large brewing at (BQI) Oilsands Quest. Possibly 10+ billion barrels large.

Over the last month I have witnessed uncanny manipulation/accumulation and have been ridden with angst in regards to the fruition of my investment. Well the fruit is blooming and it looks to be a beauty. Patience yet again is rewarded.

"It isn't as important to buy as cheap as possible as it is to buy at the right time." - Jesse Livermore

The last three days have seen a surge in volume from an average of roughly 2 million shares to 6 million and Sunday a whopping 9 million changed hands. There are many theories as to why the sudden breakout, including a leakage of positive results from the Norwest verification. Norwest has been retained as a third party evaluator to make sure that 10 billion is really 10 billion if not more. My assumption would be that the 10 billion is conservative at best and indeed the ramifications of such data will light the big rocket booster.

Another theory is that this recent move is a push from some very significant news regarding Petrobank's recent THAI testing in Saskatchewan and we haven't even seen the ramifications of Norwest. No doubt the THAI news is as big if not bigger than Norwest. Why you ask? THAI quite simply allows cheap recovery of the oil with less expense to the environment. THAI will bring out the value and profitability while Norwest is merely a verification of what has been established as true. Yes, Norwest is important but in retrospect is a formality and industry requirement. There is no guarantee that Oilsands Quest is going to leverage THAI but the synergy is there and the geographic location of their land in Saskatchewan creates a perfect little donut hole in Oilsand's land. Coincidence? I don't think so…

There is much more to this story to be told and I will save that for another time. I feel strongly that you should always do your own research prior to plunking down your cash. I also feel strongly that Oilsands Quest definitely merits serious consideration. The oil crisis has just begun and global unrest doesn't seem to happen in Canada, eh?

Disclosure: Author has a long position in BQI

Comments

[john haskell:]

there is nothing in this post except suggesting that the co has found 10 billion barrels of oil and saying that it has had an increase in volume. Same level of analysis I find in my Spam folder every morning.

2007 Nov 05 06:29 PM

[R. Ennis:]

I'm suggesting that investors look at this company. I don't feel it's necessary to pontificate just inform that it's out there waiting for you money, if you feel compelled.

Maybe next time I will provide some numbers, would that be helpful?

2007 Nov 06 10:21 AM

[Tom Jones:]

Is your article on BQI referring to the AXE LAKE find or a different location?

2007 Nov 06 07:56 AM

[R. Ennis:]

I was inferring the analysis was for Axe Lake or what was commonly known as the Norwest assessment. Turns out they hired McDaniel & Associates Consultants Ltd and that appears to be a good move and one to put them on a fast track for commercialization. Norwest will now focus on the geology of Axe Lake.

2007 Nov 06 10:23 AM

[Canuck Inve...:]

There's no THAI testing going on in Saskatchewan. Petrobank was just awarded the concession. Nobody knows if the oilsands extends that far south in Saskatchewan. They can't test before they have discovered and then firmed up the resources in that area if they exist. You have to take a very long-term approach to oilsands in SK as there is very little infrastructure in place and Axe Lake is the only area where there has been significant exploration. But in the end it may be well worth the wait.

2007 Nov 06 10:41 PM

[Tracy:]

Oilsands Quest's (BQI) experienced and professional Management team has delivered on every promise they have made to date. They have the goods and will continue to prove up more. Shareholders are anxiously awaiting the good news on their 2007-08 winter drilling program, which is expected any day. With oil at record highs, the oilsands will continue to grow and become an increasingly valuable source of oil to America. I believe in their management, their expertise, and their word. IMHO this could be one of the greatest stock values on the market today! I own this gem and continue to buy more on dips! Best of luck to all!

2008 Jun 24 11:33 PM