Monday, June 9, 2008

How to paint a pig and take in almost $10 million

How to paint a pig and take in almost $10 million:

1) Start with a low outstanding share company
2) Stake claims in an area close to a significant gas discovery
3) However, since all of the prospective land was spoken for, bend the truth a bit and announce:

"The land staked is in close proximity to Junex Resources and Intragaz Exploration near Shawinigan city, and Squatex Resources in the Rimouski area in the heart of the Quebec Utica-Barnett-like shale natural gas play."

4) Don't put a map on your website so that no one really knows where your claims are located.
5) Get all the Stockhouse day traders in a frenzy so they bid up your share price well over $2
6) Convince a company to take part in your private placement
7) Announce the completion of the private placement and tone down your claim of where your land really is:

"X-Terra Resources Corp. has received approval from the Quebec Ministry of Natural Resources for permits on approximately 150,000 hectares (1,500 square kilometres) of land prospective for shale gas in the Quebec Lowlands, Utica-Barnett-like shale natural gas play. The staked land is in close proximity to Junex Inc. and Intragaz Exploration near Shawinigan, Que., and Squatex Resources and Gastem in the Rimouski, Que., area. See the location map on the company's website."

8) Leave the map off of your website even though your morning press release announcing the PP states it is there.

I wonder who told them to remove the language "in the heart of the Quebec Utica-Barnett-like shale natural gas play" which they proudly proclaimed in order to raise their share price and then suspiciously leave out once the PP is announced. Company lawyers? The Venture Exchange? or maybe the typist accidentally left it off of the press release?

So there you have it. The path to riches have been laid out for the next Utica Shale wannabe. Are you listening Stelmine?


3 comments:

Unknown said...

good post stateside
keep it up

Anonymous said...

Hey Stateside!

I really like the website, however, what's with all the XT bashing? lol. You've really got a grudge on them. I agree that the "four horsemen" are better prospects but still. They have updated their website, and posted a map where they're properties are. Furthermore, you might want to look whose been buy XT lately.... Sprott owns approx 5% (650,000+) of the newly 14m shares outstanding. GMP has been buying big also, more than Sprott . By looking at GMP website, looks like they deal strickly withs intisitional investers only, so...just saying. I have no position XT, but you always say do your own DD.

stateside said...

Hi,

I took issue to the false claim that their land was "in the heart of the Utica shale play". I guess their heart is outside their body.

stateside

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