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OPEC Cuts Production - Here’s 3 OTC Energy Stock Plays (CGRA, ASRE, TRLEF)

OPEC Cuts Production - Here’s 3 OTC Energy Stock Plays (CGRA, ASRE, TRLEF)
Written by
Michael Sheikh
Published on
October 15, 2022
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In world news, last week, the OPEC+ group of oil-producing countries announced a 2 million barrel per day reduction in oil output. A dramatic cut to the amount of oil on the market could drive up fuel prices again in an already rocky year at the pump. While prices surge for consumers and businesses that rely heavily on this natural resource to heat their homes to basic transportation, other companies in the oil production business see greater demand and higher profit margins.The decision by Saudi-led OPEC+ has created a serious breach in U.S.-Saudi relations, which have seen their share of ups and downs over the past seven decades and now has President Biden questioning Saudi relationships.

"This move is clearly going to severely strain an already bad relationship between the U.S. and Saudi Arabia and spark a pretty significant backlash across both sides of the aisle in Washington, D.C.," says Jason Bordoff, director of Columbia University's Center on Global Energy Policy.

Although there are many energy companies to choose from, these three picks stand out. CGrowth Capital (OTCMKTS: CGRA), Astra Energy (OTCMKTS: ASRE), and Trillion Energy International (OTCMKTS: TRLEF). [embed]https://www.youtube.com/watch?v=L64vnENB_CQ[/embed]

CGrowth Capital

With CGrowth Capital (OTCMKTS: CGRA), it's about timing and location location location. With the current market conditions, the timing is now. Bill Wright came to CGrowth as a development partner in 2012 and later became CEO. Oil claims seemed to come to the forefront in 2015 with their oil claims in Wyoming. The Salt Creek area was first proven to have oil back in the 1920s. A historic picture from the American Heritage Center at the University of Wyoming shows a bunch of roughnecks drenched in oil after capping a gusher. Regarding oil fields, adjacent properties next to large wells are the next best thing. The company’s West Salt Creek property is adjacent to the old Salt Creek oil mines. Those Salt Creek wells, owned at the time by Anadarko, were flooded with CO2 and plugged and sold to the Texas energy company Fleur De Lis Energy with financial partner Kohlberg Kravis Roberts. The mine produced 3,000 barrels of oil per day, and big oil conglomerate Anadarko Oil did the geology. CGRA’s property is next to the Fleur De Lis, so you don't need a geology report to tell you it's valuable. Fleur De Lis CEO Porter Trimble saidthese oil fields have over 2 billion barrels of the original oil in place, with only a portion of that recovered to date”. The CO2 procedure from years ago has been maturing the land, creating more pressure and faster extraction once it's producing.CGRA has a measly $8mil market cap which, in our opinion, doesn’t justify the potential future gains from the retrieval of oil underfoot. Hypothetically, even if they made $1, There was a $9m bond made by PowderX, a subsidiary of CGrowth for this property… The company has over 3,000 acres of land that may have additional minerals bringing added value. There have been Uranium discoveries Northeast of Casper, near Pumpkin Buttes. Wyoming is no stranger to mining Uranium as it was more prevalent in the 1970’s and 80’s. Their Deer Trail Mine has tailings of gold, silver and copper. Tailings are predominately the waste ore left over from prior separation processes in the past. There is value in these minerals, the prize by far is the oil potential. At $90 a barrel and the ability to potentially do thousands of barrels a day adds up very quickly!A recent tweet from the company confirms the new focus once again on OIL and that “things” are in motion. As stated, the timing is great based on the global demand for oil rising and the U.S. needing to be self-sufficient. If CGRA is unable to finance this project, investors should anticipate a joint venture, profit sharing or outright buyout of some sort.

Astra Energy

If you are looking for a strong up-and-coming “clean energy” play with a low float, Astra Energy is worth a hard look. From solar, to biomass to waste, Astra Energy (OTCQB: ASRE) has multiple projects across the globe, making them a well-rounded and legit player in the energy space. In mid-August, Astra entered into definitive agreements to acquire Regreen Technologies Inc. (“Regreen”), a California-based "zero emissions" clean energy company. Astra Energy Inc. has tasked its wholly owned subsidiary, Astra Energy California Inc., a California-based company, with deploying the Regreen Total Waste System globally.Regreen, founded by renowned inventor and designer Albert Mardikian, has grown into one of the most exciting tech startups in the waste industry. Mardikian's technology has garnered the support of the U.S. Chamber of Commerce, the U.S. Department of State, the U.S. Trade and Development Agency, and other governments overseas, including Uganda, Liberia, Tanzania, Egypt, Morocco, Saudi Arabia, Zanzibar, Puerto Rico, Canada, Mexico, Jamaica, Panama, Peru, the Philippines, and the Dominican Republic. With over 20 years of experience in research and development of the science of converting municipal solid waste (MSW) and organic waste into "zero emission" marketable commodities, such as clean electricity, biofuels, animal feeds, fertilizers, organic pesticides and reclaimed water purification, Regreen is now positioned to deploy its “Total Waste to Energy” worldwide.

"I am excited to be partnering with Astra Energy Inc. The combination of this disruptive technology with Astra's far-reaching waste industry connections, domestically and internationally, will change the way trash is processed globally. The world will finally see the expansive value of all trash. Just think, NO MORE LANDFILLS," Mardikian stated.

With a global push not only for clean energy but an overall cleaner environment, this company can easily expand worldwide as long as the business model is proven to work. California, known for its liberal views, is the perfect state for this eco-friendly business experiment. Astra Energy’s additional subsidiaries include Three Sixty Solar which is the developer of the first of its kind commercial Solar Tower. Three Sixty’s patent-pending design facilitates the deployment of solar panels in a substantially more energy-dense manner than traditional ground-mount solar farms. Using as much as 90% less land space than conventional solar farms, Three Sixty is deploying towers in environments where space is at a premium due to cost, land constraints, challenging terrain, and other restrictions.Astra, over the last 18 months, has expanded into Africa with projects in Uganda and Tanzania in addition to its closer-to-home electricity project in Jamaica utilizing sugarcane biomass.

Trillion Energy International

In recent news, Trillion Energy (OTCMKTS: TRLEF) is midway through drilling its first new well in the multi-well development at the SASB Natural Gas Field, offshore Turkiye (formerly Turkey). The company is now fully funded to execute the initial seven well development program, as well as an additional 10 wells using cash flow generated from the first seven wells.Natural gas production at SASB is expected to commence in November of this year, supplying vital new natural gas to the region. The current spot price in this region is $31/mcf versus $6.50/mcf in the United States. This supply is imperative, as multiple sources of gas on which Europe has previously depended are going go offline, such as the Nord Stream I & II pipelines which are now non-operational, suffering explosions last week. The Groningen field, owned by ExxonMobil and Shell has been forced to reduce production by the Dutch government to less than 2 BCM for 2023 - down from 4+ BCM for 2022. Also, last month Russia cut gas supplies to Italy, reduced Moldova’s gas supply by 30%, and announced the closure of the pipeline going through Ukraine to Europe.Trillion Energy has natural a gas pipeline and facilities onshore in Turkey which are not dependent upon the gas transport systems experiencing problems in other parts of Europe. Trillion’s development will provide much-needed natural gas during acute shortages at $30+/mcf current pricing.Doing the math, each well will produce $70K daily which is $2.1 million per month. Once all 17 wells are drilled, they will make $35.7 million per month. These wells are completely funded which means after completion of their drilling program they will be making $428.4 million a year for the life of these wells which could be ten years plus. There is virtually no risk of a bad hole or the risk of having money to drill it. The biggest risk is peace with Russia which will quiet the prices if they reopen production to Europe. Not bad, a company with a guaranteed multibillion-dollar revenue stream over the next ten years trading at a $120 million market cap.

Investment Summary

The investment thesis about energy in this article is simple, we need more of it, and the demand isn’t going away. The OPEC cuts highlight just how connected our global energy ecosystem is. Look at the competing forces, the US government pushes 2 million barrels a month out of the strategic petroleum reserve while OPEC cuts production by 2 million barrels a month. Russia cuts the natural gas supply to Europe and the USA ramps up massive exports to Europe. The beauty of the OTC market is that you can find the best company that fits your investing style. CGRA is a speculative oil play with a $7 million market cap, and tremendous upside as the reserves are proved out in the hundreds of millions. ASRE is a renewable energy company that just uplisted to venture status with a $50 million market cap and has a new waste-to-energy business poised for immediate growth. Finally, TRLEF is for the investor that wants to see revenue on the financials right now, money in the bank, no dilution risk, and little to no exploration risk. TRLEF investors will benefit the most if Putin stays in power and prices in the Black Sea region remain strong. With billions in potential revenues, the $120 million market cap is a safe entry for investors. These three plays make for a nice diversified portfolio in energy.


Disclosure: Insider Financial and its owners have NOT been compensated for this article. This article was written by a guest contributor and solely reflects his opinions.

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