Friday, January 30, 2015

MCWEF .58 Debate another run to a buck like it did Nov and Dec as a result of company pr this week....Producing oil @ 28 bucks a barrel One of the very with ability to make money on low oil prices.

Attn subscribers:  We are sending this report to a half of our greater databases into the morning.        We will be sending other half over the weekend (with updated pps).    In addition, a copy of this report will be posted at various locations latter today and into the weekend.
 
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Below is an updated profile report on MCWEF from www.greenbackers.com
 

Debate another run with MCWEF to a buck like it late December following more bullish news as the stock is placing greater emphasis on producing oil @ 28 bucks a barrel (Nearly half of what the BP's of the industry are doing). 

 "One of the very few oil companies with ability to make money on low oil consumer costs."

Has a history of jumping back at/above 1.00. Twice in last qtr 2014...Look for history to repeat in first half of 2015
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    We profiled MCWEF in latter part of 2014...stock ran from .similar levels to nearly a buck following....Then we discussed producing oil at half the cost of the majors.

    In addition, we see recent, bullish company press releases driving right back to those levels with a little investor patience.

     

    First, the news this week that sparked flexing:

     

     

     

    NBT Equities followed ucp with a reported that dove into the real specifics and what i

     

    MCW Energy Group (MCWEF) Projects Windfall Reduction in Oil Sands Costs to $28 per Barrel

    MCW's oil sands processing costs have now been projected downwards to $ 28.00 USD per barrel, mainly due to lower costs of the petroleum products being used in the extraction process, such as solvent blends, diesel fuel, liquefied propane, heating oil and natural gas condensates.

    All of these energy/processing component prices have fallen in tandem with the current dramatic fall in world oil prices. Condensate prices are down 50%. Solvent blend, diesel fuel and propane prices are down an average of 40%.

    "Unlike the high production costs and lower energy efficiency levels associated with the mega oil sands projects in Alberta, MCW is in a unique position to take advantage of this unexpected ....

    Key Point: At @$28 CAPEX/OPEX cost per barrel of light sweet crude oil (@32 API) for MCWEF vs. $40-$60 per barrel processing costs for much of the Canadian oil sands heavy crude production (which also sells at 20-30% discount to WTI crude oil due to higher transportation and processing costs) and/or recently developed shale oil resources, we estimate MCW's Utah per barrel oil production is more profitable than 95% of shale oil being produced and virtually 100% of existing oil sands production.

    Really Key Point: With their 5000 barrel a day production coming on line in 2016/2017…investors have to use 2016 WTI futures pricing (currently $62.72) to come up with cash flow forecasts. In addition, MCWEF's 5000 barrel a day plant plan includes the purchase of the Temple Mountain oil sands lease as part of the plant development project.

    We estimate.... Read more:   http://www.nbtequitiesresearch.com/report/mcw-energy-group-mcwef-projects-windfall-reduction-in-oil-sands-costs-to-28-per-barrel

     

     

    Now the technicals:
     
    First, the stock has been building a healthy base around .60 since it's last runup to a buck late Dec.
     
     
    If you go back a little further, the stock shows intermediate term support around .60 as well following two solid runups at/above 1, only this time it is forming a higher low around .60 instead of .50.
     
     
     
     
    Bottom Line:  With a much more convincing abiilty to produce oil at half the cost news...And the ongoing support at current levels / consistent ability to jump right back to a buck, the risk/reward here quite appealing.  Debate buy/holding this one right back to a buck into early 2015.
     
     
     
     
     
     
    Below is a the  report we discussed above on MCWEF back late Dec prior to a subsequent runup to 1.
     
     
     
    Sent: Tuesday, December 23, 2014 12:42 PM
    Subject: Examining MCWEF on followthrough 0.65 Up 0.04(6.56%) Producing oil at 50% less then Oil Sand Majors
     
     
    Focus:
     
    We said to watch for carryover with MCWEF....The follow through has been fairly solid so far....Examine for new footing in lower .60s

    MCW Energy Group Limited (MCWEF)

    -Other OTC
    0.65 Up 0.04(6.56%) 11:56AM EST
    Day's Range: 0.6050 - 0.6810
    52wk Range: 0.44 - 1.52
    Volume: 59,512
    Avg Vol (3m): 39,664
    Market Cap: 29.89M
    MCW Energy Group Limited (MCWEF)
    MCW Energy Group Details Further Progress of Its Initial Oil Sands Extraction Plant in Utah at Marketwired Mon 9:30am
    NBT expanding on last month:
    MCWEF's Utah Oil Sands Project Producing Oil at 50-100% LESS Than Oil Sand Majors

    To understand the true value of MCW Energy Group's technology with production of oil from Utah Oil Sands, take a look at this "total cost of oil production" analysis from Seeking Alpha.

    The results can be found in the table below:

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    CNR and Cenovus upgrade their oil sands to conventional grade oil levels with expensive upgrading. Husky sells straight heavy oil/bitumen at much lower prices.

    KEY POINT: With @$30 total oil production costs and premium to WTI oil coming out of MCWEF's oil sands recovery plant in Vernal Utah, it profit per barrel of MCWEF vs. CNR or Cenovus is no contest—MCWEF wins by 100-120% MORE profit per barrel of oil.

    To see the complete report, click here.


    In the last month the stock has taken a free fall from 1.20....For no real reason we can locate, especially if you examine all the news above (we included everything listed from Yahoo)....Makes a case for oversold intermediate term...
    MCWEF 1 Month Chart
    Keep in mind the stock had reversed sharply from .70 or so back to 1.20 in Sept...
     
     
     
     
     
     
     
    Disclosure:  MCWEF is a profile stock at www.nbtequitiesresearch.com  Greenbackers does receive compensation from time to time to assist in expanding awareness for stocks they profile.
     
     
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