MASP.OB - Enters with JKA, GPRE - Implement Corn Oil Extraction Technology, NSANY - Launch of Global X Lithium ETF - StockHotTips.com
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MASS PETROLEUM INC (MASP.OB)
In recent years, the Midwestern states such as Oklahoma, Michigan, Illinois, Indiana and Ohio are becoming increasing popular with oil and gas companies who are driven to produce more supply to meet the ever-increasing demand for these products globally. Kansas is also among these oil rich states that are driving companies to drill. And, lucky for one savvy public company, Kansas is sure to drive revenue (as well as vehicles!).
Kansas is truly a wonderland; in more ways than one it is a state also rich in oil reserves.
Kansas has proven reserves of - 263 million barrels (41,810,000 m³) and is Ranked 12th in the U.S.
In Kansas one of the benefits of water flood and regular cleanout of the well bores due to sand sloughing benefits the oil Wells, causing lower maintenance problems.
In Kansas the area produces oil from shallow sandstones. The sands are relatively uniform over a wide area and are stratigraphically trapped in localized accumulations.
Average well depth is approximately 380 feet. There are approximately 130 total wells on the property; leases are 100% working interest (“WI”), with net revenue interest (“NRI”) at approximately 80%. Total acreage on all leases is 1,300 acres.
On July 22, 2010, MASP entered into a non-binding Letter of Intent with JKA Ventures Corp. (“JKA”) whereby MASP will purchase JKA’s working interest in the Walnut, Southeast Field in Crawford County, Kansas. The preliminary terms are that MASP will acquire 100% of JKA’s working interest for a total price of US $800,000, with a 10% deposit payable at the completion of MASP due diligence. The transaction is scheduled to close by September 1, 20010 but is subject to MASP’s due diligence investigation and also the negotiation of a final, formal contract.
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Green Plains Renewable Energy, Inc. (GPRE)
Last Trade: 10.22
Trade Time: Jul 23
Change: Up 0.37 (3.76%)
Day’s Range: 9.85 - 10.30
52wk Range: 6.50 - 17.97
Volume: 282,657
Avg Vol (3m): 435,542
Market Cap: 320.42M
GPRE announced that it will implement corn oil extraction technology at its ethanol plants. GPRE expects to complete the technology deployment by the end of the first quarter of 2011 and anticipates the project would enhance operating income by $15 million to $19 million per year.
ICM, Inc. has been awarded turn-key installation contracts at five of GPRE’s six plants. The expected total project cost for all plants is approximately $18 million. GPRE anticipates first revenues from corn oil extraction at the Obion, Tennessee plant to occur within the next 90 days.
GPRE has entered into a license agreement with GS CleanTech Corporation, a subsidiary of GreenShift Corporation, to utilize its patents and pending patents.
About Green Plains Renewable Energy, Inc.
GPRE is North America’s fourth largest ethanol producer, operating a total of six ethanol plants in Indiana, Iowa, Nebraska and Tennessee with annual expected operating capacity totaling approximately 480 million gallons. GPRE also markets and distributes ethanol for four third-party ethanol producers with annual expected operating capacity totaling approximately 360 million gallons. GPRE owns 51% of Blendstar, LLC, a biofuel terminal operator which operates nine blending or terminaling facilities with approximately 495 million gallons per year of total throughput capacity in seven states in the south central United States. GPRE operates grain storage facilities and complementary agronomy and petroleum businesses in Iowa, southern Minnesota and western Tennessee.
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NISSAN MTR SPON AD (NSANY)
Last Trade: 14.33
Trade Time: Jul 23
Change: Up 0.15 (1.06%)
Day’s Range: 14.20 - 14.39
52wk Range: 12.67 - 17.95
Volume: 103,650
Avg Vol (3m): 128,084
Market Cap: N/A
As reported by The Wall Street Journal a few days ago, MC Capital Advisors and Global X Management Co. have announced the launch of Global X Lithium ETF “that tracks lithium producers and battery makers”. The ETF builds on an index comprising 20 companies. What is interesting about this ETF is that investors will now find a way to participate at the same time in production of lithium resources and one of its most important sources of demand (i.e. batteries) while diversifying their risk and uncertainty.
This idea could not be more timely given the hype generated by the up-coming introduction of the first mass-produced lithium-ion battery operated electric cars by NSANY and General Motors into the market later this year. Even though in 2009 lithium production declined by 28% with respect to the previous year, essentially due to the prevailing economic recession, most battery makers have continued to invest heavily mostly in research and development aimed at obtaining the most suitable lithium-ion battery for the emerging electric car market. This has been matched by similar behavior on the part of lithium producers; existing mining operators have announced new investments to cope with demand in the coming years and there are now almost 70 pipeline projects at different stages of exploration and evaluation getting ready to exploit lithium in different parts of the world. Behind this are the fears that there is not enough lithium on earth to cover the demand for lithium-ion batteries and electric cars.
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