‘East coast households are facing gas bill hikes of more than 50%...’ says The Australian…
‘Mid-2017 until late 2018 is really the “crunch point” in supply,’ reports the Australian Financial Review…
But there’s no need for you to be a victim of this development — if you move quickly.
I’ve identified three companies that are moving to fill the gap in gas supply sucked out by the ‘Crisis at Curtis Island’.
Potential gains could start — conservatively — at 95%, and scale up from there.
But you need to make your move on these stocks ASAP…
Curtis Island is one of Australia’s least known, truly secluded tropical getaways:
It lies 474 kilometres North West of Brisbane. You can't get there by car.
The only way to step foot on its soft, golden sands is by private boat or local ferry.
A quick stroll around the island and you’ll discover some of Australia’s secretive fishing spots, pristine beaches and wild, vibrant birdlife.
But here’s the thing…
Curtis Island is also the focal point of a looming energy crisis that looks set to smash Australia’s eastern seaboard by mid-2017.
And it’s set to shoot the price regular Aussie households and businesses pay for gas to unprecedented levels.
Most Australians living on the eastern seaboard will be victims of this situation.
But there’ll be a handful of beneficiaries, too.
The purpose of this letter is to put YOU in the latter group.
This will involve placing calculated stakes in three extremely well positioned, yet little-known stocks.
I've selected these stocks because I believe they’re all set to go up as a direct result of what’s unfolding on Curtis Island.
How much could they go up by?
At a minimum, I expect all three plays to double in the next 12 months.
But to be honest, the gains could be much greater.
If I’m right about the escalating gas ‘crunch point’ on Australia’s east coast…and what it means for a few unique Australian companies…each of these three stocks could go ballistic in the weeks and months ahead.
Which means you have precious little time to grab these potential gains before they’re gone.
The gas crunch story has slowly crept into the business pages. It’s only a matter of time before it makes headline news in the mainstream media.
As soon as that happens your shot at double — potentially triple — digit gains will be gobbled up too.
Let me give you the full story…
Over the last decade, Australia's three dominant liquefied natural gas (LNG) producers, Santos, Origin Energy and BG Group have poured more than $60 billion into three enormous LNG terminals, which now occupy the southern end of Curtis Island.
All three gas terminals were built with a single purpose: To export millions of tonnes of freshly produced Aussie coal seam gas from Queensland’s Surat Basin to international export markets.
You see, at the time these massive LNG plants were approved, international gas prices were much higher than Australia’s domestic gas price.
The east coast domestic market was awash with gas supply, so it was much more profitable to sell Australian gas to international markets.
As I’ll explain in a moment, that’s no longer the case.
It’s why I see such an incredible investment opportunity today.
The thing is, hardly anyone knows what’s going on. They’re too busy focusing on the problem to see the huge — and potentially lucrative — opportunity staring them in the face.
Let me show you the problem first. Then I’ll reveal how you can take advantage of the coming ‘crunch point’ with three little known Aussie energy plays.
OK, here’s the problem:
The LNG plants on Curtis Island were built to access Queensland’s massive coal seam gas reserves.
The idea was to monetise Queensland’s reserves by selling gas into international markets (and getting much higher international gas prices for it).
But the flow of gas from these coal seams has underperformed expectations big time. As a result, the Curtis Island plants need MORE gas.
This is where the story takes an interesting turn…
Gas that was formerly destined for domestic markets in Sydney and Melbourne is now heading north for Curtis Island.
The three giant LNG plants are sucking all the excess supply out of the market.
Gas from the Cooper Basin on the South Australian border…and even as far away as Victoria’s offshore gas fields, is heading to international markets to take advantage of higher prices.
That means less gas available for Aussie households and businesses. Which means higher gas prices are on their way.
As a 17 January article in The Australian stated (emphasis is mine):
‘East coast households are facing gas bill hikes of more than 50 per cent over the next few years as Gladstone’s big new export plants continue to suck up gas from the southern states in the face of lower than expected Queensland coal-seam gas supply, according to National Australia Bank forecasts to be released today.’
It’s not just households that will suffer. Businesses face massive increases in their gas bill too.
On 5 January, the Australian Financial Review reported (emphasis is mine):
‘Manufacturers fear nothing can save them from the risk of having gas supplies curtailed come mid-year amid the looming squeeze in the east coast market that has already seen prices surge.
‘As LNG exports from Queensland ramp up, some local industrial buyers have been forced to agree to 100 per cent price hikes for their gas in 2017, pushing them to the brink. But when it comes to the crunch, deliveries to industry may be cut back to preserve supplies for retail customers, some fear.
‘Mid-2017 until late 2018 is really the crunch point in supply,” said Mark Chellew, chairman of Manufacturing Australia, which has several members struggling to source long-term supplies of gas.’
Higher gas prices are flowing through the economy right now. But when June hits, your gas bill will be higher again.
Here’s what I mean…
In April 2016, the Australian Competition & Consumer Commission (ACCC) released a detailed report titled ‘Inquiry into the east coast gas market.’
The report focused on the effects of the new LNG export industry on the domestic gas market.
Its findings were shocking, yet only a few insiders understood the implications.
Here’s the key finding from the ACCC report:
‘East coast gas demand is expected to soar from around 700 PJ per annum in 2014 to around 1750–2200 PJ per annum in 2017–18 due to exports from the LNG projects.’
The chart below gives you a visual on how exploding international demand will ramp up Australian gas consumption:
Take a look at those ACCC numbers again.
In just three years, gas demand is expected to more than double thanks to Australia’s booming export market…
Yet supplies remain hopelessly tight.
This is the coming ‘crunch point’.
And I think it’s going to have massive implications for the Aussie economy within 12 months.
You’ll pay more for gas-generated heating and cooling.
Industrial businesses that use significant quantities of gas will see higher costs, and will pass those costs on to you in the form of higher prices.
But you don’t have to be a victim. There is a way you could profit from this seismic shift in the east coast energy market.
Everyone on the east coast will have much higher gas bills within 12 months. That is a given. But not everyone will profit from this situation.
You could, if you act fast. I’ll show you how.
I’ve identified three east coast energy firms actively seeking to fill the gap in supply sucked out by the massive LNG plants on Curtis Island.
When I first recommended these plays to subscribers of Crisis & Opportunity in October last year, the story was still underground.
Only a handful of insiders and well informed investors knew what was unfolding.
In that time we’ve made some modest gains on our three east coast energy plays. One is up more than 20% already.
Another is up over 15% total on news a private equity player grabbed a big ownership stake in February. The story is heating up, it’s still early days.
And I believe the big gains are still to come.
That will likely happen when the broader market catches onto this opportunity.
We’re beginning to see that now.
The ‘gas crunch’ story has begun to seep into the mainstream media. The moment the rest of the market catches up with this story the biggest gains will dry up fast.
Which is why you need to grab a stake in these three tiny gas plays NOW, before that happens.
To be clear: I’m not talking about the big gas players.
Santos, Origin Energy and BG Group may own a big chunk of the gas reserves in Australia, but they’re also weighed down by huge debt levels — debt that was taken on to build the Curtis Island LNG plants.
It’s the smaller, little known Aussie gas players, already pumping gas or with plans to vastly increase their output, which can quickly fill the supply hole opened up by the big energy giants…and potentially lead you to a series of triple-digit gains as domestic gas prices march higher over the next 24 months.
I’ve found three prime candidates that fit the bill. Three small gas plays that are set to take advantage of rising international gas demand and higher domestic gas prices.
I believe each one is perfectly positioned to take advantage of Australia's gas export expansion.
Each stock is a quality company, cheap, and shows huge potential for fast-paced growth.
These Aussie players are set to push millions of feet of much needed gas into a market near-certain to suffer a supply crunch in 2017.
Demand is playing into their hands...and they're taking full advantage.
You can take advantage of this fast-moving opportunity too...if you're quick.
I'll show you my three favourite 'East Coast Energy' picks in just a moment...
First, there's something else you need to see.
Besides the insatiable international gas demand driving Australia's gas export expansion, there's another reason gas, and a certain ‘breed’ of gas stocks, are on the up in a big way.
Let me explain...
Gas prices are linked to the oil price.
When oil tumbles, gas stocks take a tumble too.
As oil sank more than $80 a barrel — a 70% price crumble — between 2013 and 2015, big gas stocks like Santos, Origin Energy & Woodside Petroleum followed the oil price down.
Investors headed for the exits and sold out of Australia's big gas stocks.
Likewise when oil rises, gas — and gas stocks — surge upwards.
Right now, you're seeing oil prices rise up from multi-decade lows. The push higher was helped by OPEC's decision to cut back oil production.
This decision has handed oil some much needed breathing room.
As I type, oil sits around $50 per barrel. Should this price hold, I think you could see US$60–70 oil in the months ahead.
The resurgent oil price is great news for small Aussie gas stocks. A higher oil price equals a higher gas price.
Oil's march higher will act as a major tailwind for the Aussie gas companies who supply the domestic and international markets in the years ahead.
Bottom line: demand for Australian gas looks set to explode in 2017 and into 2018.
International thirst for Aussie gas will suck a lot of east coast gas supply out of the domestic market and overseas. Gas prices are about to shoot higher...
And I’ve found three companies I think are best placed to take advantage of this huge energy shift.
I believe it when I say the three gas firms I’ll introduce you to could double your money by December this year.
The supply and demand factors you’ve seen today are happening now.
Which is why I recommend you place all three stocks at the top of your buy list.
I’ll explain how you can secure your stake in a moment. First, it’s time I properly introduce myself.
My name is Greg Canavan.
I write and edit a unique Australian investment advisory called Crisis & Opportunity.
Like the name suggests, I show private Aussie investors how to turn crisis situations into lucrative investment opportunities.
Here’s what I mean.
In April 2016, interest began to pick up in Aussie gold stocks. One small player, Gryphon Minerals [ASX:GRY] had gone through an existential crisis in the preceding years.
Investors watched as its share price sank from $2 to $0.05!
Crisis & Opportunity readers got on board around 8.5 cents. A few months later, Gryphon received a takeover offer from a Canadian miner and we sold for a 100% plus profit in less than three months.
That was a speculative opportunity.
But there are also great opportunities in the large-cap sector.
For example, in April 2015, readers bought into what was then called Leighton Holdings at around $20. It had been through a difficult few years and suffered from poor management.
But new management, with a history of turning companies around, had recently jumped on board. Within 12 months, we took 60% profits on this trade.
At the same time the broader S&P ASX 200 crumbled more than 15%.
Those ‘crisis’ gains were great for my readers. But get this…
The imminent gas ‘crunch’ I’ve shown you today is one of the clearest, and biggest, crisis opportunities I’ve seen in my 20 years of researching Aussie investment markets.
So are the potential gains.
The small group of private Aussie investors who join me on this ‘crunch’ profit play could double their money in 2017 alone.
Those could be the minimum gains on the table, by the way. You could squeeze far more profit as Australia’s gas shock blows up.
Of course, profit opportunities of this size are not without risk. But if you’re reading this now, I bet you’re smart enough to know nothing is guaranteed in the stock market.
In any case, there’s no overstating the opportunity in front of you today. It’s huge, and could pay off for you in a big, big way, starting now. But like any stock market investment, you should only ever risk money you can afford to lose.
The sole aim of Crisis & Opportunity is to provide you with a service that I believe could significantly outperform the returns of typical 'buy and hold' investors.
How do I plan on achieving that aim?
With something I like to call 'the fusion method'.
I pick fundamentally quality businesses trading at a cheap price. And that analysis is ‘fused’ with technical analysis to time entry points and increase your chances of success.
Investing this way means you'll be able to quickly adapt and adjust to changes in the market and take advantage of high-potential opportunities no matter the overall market direction.
In other words, it doesn’t matter if the broader market plunges or skyrockets in 2017 or 2018…
By ‘fusing’ together fundamental and technical analysis, I’ll aim to help you make money regardless of what the ‘market’ is doing.
The only hard and fast rules of my 'fusion method' are:
1) Buy a stock when it’s in an emerging uptrend.
In other words, I want you to swim with the tide, not against it. And;
2) Ensure there is a good fundamental story behind the stock pick.
Combined, both rules ensure the technical and fundamental attributes of a stock are aligned. This analysis ‘double-shot’ ramps up your odds of success.
Over the last few months I’ve analysed the situation in the gas market through the finely-tuned lens of my ‘fusion method’.
It has convinced me that gas prices, along with a few uniquely positioned gas stocks, could do extremely well next year.
But, if you’re interested, I’d urge you to move swiftly on my advice.
This new analytical approach is rapidly building a history for identifying these winning trends.
Since adopting the fusion method in November 2014, for example, we’ve outpaced the broader market by a wide margin.
Currently, the Crisis & Opportunity buy list has 15 open positions. 13 of those are in profit, while two are showing a small loss.
Overall, the average gain across all open and closed positions (both winners and losers) since I started using the fusion method in November 2014 is around 30%.
Again, those are just the average gains!
Compare that to the S&P ASX 200 Index, which is up less than 2% over the same time, and you begin to get a sense of just how powerful and potentially lucrative this investing strategy can be.
But those are gains we’ve already achieved. I want to show you what’s coming next.
I’ll start with the three Australian gas producers I think could make you a lot of money in the years ahead as international demand for Aussie produced gas fires up.
The three firms I’ll introduce you to now are poised to take advantage of the huge supply squeeze inside the Aussie gas market. Each company is already producing gas, is financially sound, and cheaply priced.
But I doubt they’ll be this cheap for long.
Let me be clear: time is a crucial factor here.
You don’t have long to take advantage of these stock prices. Once the rest of the market catches up with this story — and these stocks — shares in each are likely to move up rapidly.
The time to jump on these three east coast energy stocks is NOW, while they remain cheap.
Here’s the first…
Your first stock is the biggest company on the list.
And if I’m right, they’re about to get a whole lot bigger!
This firm has been in the oil and gas ‘game’ for 54 years. A recent merger has firmly planted them as the largest onshore oil and gas producer in the country.
They’re financially sound, with $200 million in the bank, and they preside over 69,000 square kilometres of oil and gas rich acreage in the Cooper Basin.
That’s all well and good, but the main reason I like this firm so much is because they’re packing enough oil and gas reserves to last the next three decades.
Meaning they’re set to rake in huge profits as east coast gas demand takes flight.
Profits that could push the share price upwards.
Best part: you can pick up shares for just 74 cents today. But like I said, I don’t think you’ll see shares priced this low for very long.
From a charting perspective, the recent price action has been encouraging.
As you can see in the chart below, the stock bottomed at the start of the year, along with the oil price.
It recovered quickly but then started to correct lower, moving all the way back to the breakout level from March, which was around 53 cents.
That proved to be a strong support region, and the price moved swiftly higher.
From September to December last year, the stock rallied nearly 70%. It’s now in the process of correcting that big gain, which in my view is a buying opportunity.
OK, so that’s the first gas producer I think could make you substantial profits in the next 12–18 months. There are two more I want to show you today.
I believe shares in each one will spring upwards against the backdrop of an LNG-driven supply squeeze.
All my analysis on each of the three east coast energy punts is included in a special investment report I've put together.
You can claim your copy today...read it for yourself.
I'll show you how to claim your own copy in just a moment.
Before I do that though, let me introduce you to my other two ‘gas crunch’ profit plays.
Your second recommendation is a high risk play. I make no bones about it. Grab this stock today and you’re taking on a higher level of risk by doing so.
But in my view, with the extra risk comes potential for far greater gains…
Right now this firm is valued at just $300 million. That might sound like a lot on the surface, but when it comes to energy stocks, it’s tiny.
Even so, if this firm’s future plans pay off you could see that valuation and its share price head skyward.
Which is why I recommend you get a few shares under your belt now.
In September 2015, they signed a heads of agreement with energy giant Santos to supply gas for a contract length of 20 years.
This is a huge deal for such a tiny company, and my analysis tells me the gas sourced for Santos will feed straight into the export terminals at Curtis Island.
In February 2017 they announced that a global, energy focused private equity player took a big stake at a premium to the prevailing share price. This is almost unheard of, and indicates that the project this company is working on has big potential.
That will bode well for this firm’s share price. Remember, the whole rationale for my east coast energy plays is that higher priced LNG (and a buoyant oil price) will filter straight to the bottom line of these firms, and push share prices higher.
Santos is just one joint venture story for this company. They’ve also teamed up with Origin Energy for an unconventional gas exploration program in the gas rich Cooper Basin.
If successful, it could add another major production source in the years ahead, meaning you could see an extra nudge up on the share price too.
But a fast-climbing share price depends on the successful development of current assets and a healthy oil price. That’s why I consider this firm a high risk play.
OK, let’s look at the chart.
As with East Coast Energy Play #1, this firm bottomed out in the latter half of 2015 and early 2016, before rallying strongly.
The shares then corrected, and they’ve been consolidating and moving sideways since.
The emerging upward trend is just starting to establish itself. You can see that by the moving averages crossing over to the upside in December last year.
If things do go to plan, the trend should continue higher and there could be considerable upside for you in this play.
Today you could pick up shares for just under 30 cents. All going well, I believe you’ll see those same shares swap hands for 60 cents by Christmas.
That’s a 100% potential gain on today’s share price.
Your final east coast energy pick is a similar story to number two. It’s a high risk play…in fact it’s the highest risk stock out of the three.
With a market cap of just $150 million, it’s also the smallest company of the pack.
Plans are to bring a major new gas project online in the next few years. If they can develop this gas field without any major setbacks, it could pay off handsomely for you.
Here’s the story…
Back in 2014 this firm acquired a 50% interest in an offshore gas field from Santos.
Just recently, this company signed a deal to buy the remaining 50%, as well as other gas assets, from Santos.
Plans are to develop this major new field and pump the first lot of gas by March 2019.
This transaction will increase this company’s reserves by 900%, and 2017 production will increase a massive 540% on 2016 output. Within a few years, output will get bigger again.
An initial supply agreement will push much of the gas production to energy giant AGL and glass container manufacturer Owens-Illinois.
The ‘final investment decision’ to move ahead with the project is imminent. When it makes the announcement, the market will sit up and take notice. In fact, the share price is already starting to move…
You can see on the chart an upward trend formed over the course of 2016. Since bottoming around 14 cents in January/February, the stock has performed strongly.
First there was the rapid advance in March — that broke the downtrend. Then prices consolidated for the next few months, before moving higher again in August.
If you compare this chart to the other two, you’ll notice the share price broke out to new highs while the other energy stocks corrected lower with the oil price.
This strong performance relative to the rest of the sector is a bullish sign. It tells you the market is beginning to notice the long-term investment opportunity.
That’s why I believe now is the time to snatch up your share of this company. In early February, the stock broke out to another new high, at 39 cents.
You need to move quickly on this one. The market is starting to wake up to the opportunity. I doubt shares will be priced at current levels much longer.
The high-priced east coast gas investment theme should unfold over the next few years.
To maximise your potential gains on each of the plays profiled for you today, I recommend you buy up shares in each stock IMMEDIATELY.
You can’t sit on your hands on this one.
Australia’s transformation into an LNG export behemoth is underway right now.
The next 12 months is likely to see a profound shift in the east coast gas market. A force that could see each of the three companies I’ve shown you today march significantly higher.
If you’re as excited by the promise of each of these east coast energy plays as I am, here’s what you do next…
With your permission, I’d like to send you my full briefing on these three opportunities right away.
The only thing I ask you do in return is take a no-obligation 30 day trial of Crisis & Opportunity.
You can test drive my advisory service for a full 30 days, obligation-free.
If at the end of those 30 days you don’t wish to continue — for any reason at all — just contact my customer service team for a no-fuss refund.
You don’t have to worry...if you don't like it...I'll refund every cent of your fee...
Click here to do that right now.
As soon as you join, I’ll immediately send you an email link to my original analysis on each stock opportunity profiled for you today.
Including the company ticker symbol, how much of your capital to allocate to your position, the risks to be aware of and my recommended stop loss.
But this is only the beginning of your membership benefits.
You’ll also receive full access to the Crisis & Opportunity buy list, all of my previous analysis, and a host of special investor reports.
All of this is yours now, as soon as you click here.
And for as long as you remain a subscriber I’ll continue to send you one investment recommendation each month.
Again, my approach is to analyse and identify quality businesses selling ‘on the cheap’…and then 'time' entries with technical analysis to give you a better chance at success.
It’s this fusion style of technical and fundamental analysis that’s proven to be profitable for my readers over the last 18 months — while the broader market has basically gone nowhere.
I'd like you to join them.
So what will you pay to become a Crisis & Opportunity member?
I know financial advisors that charge more for a single HOUR of their time.
That small investment includes my full, members-only research report on the three energy plays showcased for you today, plus instant access to the Crisis & Opportunity analysis archive, and details of my full stock buy list.
For as long as you remain a member, I'll continue to send you my monthly stock recommendations, as well as weekly email updates on the stocks on the Crisis and Opportunity buy list.
When you do the numbers, you're looking at just over $12 a month for the lot.
I don’t know of another advisory outside of Port Phillip Publishing that comes close to offering you the in-depth and quality analysis you’ll find inside Crisis & Opportunity for that price.
Remember, you also have a full 30 days to trial my service.
If for any reason you’re not happy within that 30 days, simply contact my customer service team and I'll put every cent of that $149 straight back in your account.
But to ensure there’s nothing stopping you from joining today, I’m going to sweeten the deal even further for you.
You receive everything we’ve talked about today…PLUS you still receive a full 30 days to test drive my service.
All for $49.
I’m sure you’ll agree that’s a fantastic deal.
But you’re only eligible for my $49 special offer when you join today.
To do that right now click here.
Remember, you have a full 30 days to ‘test drive’ Crisis & Opportunity.
Study my analysis, ‘paper trade’ my recommendations, download and flip through my special reports…
And if at any time you are not 100% over the moon with my service, for whatever reason or any reason at all, simply contact my customer service team for a full and courteous refund.
If you’re not happy then neither am I. And you'll have a full 30 days to try out my service for yourself.
Starting with my full, original research report on the three leading LNG producers I believe are about to soar higher as the international demand for Aussie produced gas heats up.
Click here to start your 30 day, no-obligation trial of Crisis & Opportunity now.
Complete the secure order form on the next page and we’ll charge your credit card $49.
Whatever you decide to do, please don't delay. The full scope of the coming crunch point is only just starting to be realised.
Potentially lucrative stock opportunities abound, including the three east coast energy plays you've seen today.
That's why it's so important you act on this opportunity now, while prices remain low.
Click here to start your 30 day trial subscription today OR click on the 'Subscribe Now' button below.
Editor, Crisis & Opportunity
PS: I almost forgot.
I’ve organised you two more valuable members-only special reports you’ll receive at no extra charge when you become a member of Crisis & Opportunity today.
The first, ‘The “Fusion Method” Revealed’, unveils my unique — and highly profitable — ‘fusion’ strategy in full detail. You’ll see how blending fundamental AND technical analysis could greatly increase your chances of success in selecting rising stocks.
Your second special report is called: The Secret to Profiting from the ‘Lift-Off Point’.
The big advantage of fusing fundamental with technical analysis is that you can buy into an undervalued stock when it first begins to go up.
Investing with the trend (and not against it) vastly improves your odds of success.
This report shows you how to find stocks most likely to move up — and continue moving higher — over the medium to long term.
You can download both reports immediately when you take a 30-day, no-obligation trial run of Crisis & Opportunity today.
Click the ‘Subscribe Now’ button below and start your trial membership now.