any ideas?

I’m buying 20,000 shares in this penny oil
Chuck’s recommending for $3,000

If they prove up that $4.8 billion of oil on their property
-- as Chuck expects they will -- I could end up with $100,000 in
profits from this one, single stock!

The company has a 2,400-square mile concession in Brazil bridging 8 huge oil fields. At current prices, I estimate the total value of this company's potential reserves at close to $5 billion.

They've pinpointed five oil-rich drill sites and just started the test drilling. The first well already struck oil. More results due out within the next two weeks. If the test drillings prove up commercial quantities of oil, we could see shares double or triple in short order.

And if this company proves up the $4.8 billion of oil that Chuck is expecting is down there -- those shares could easily explode to $3 or $5 a share.

Wow, this was a hard one.

The company is Eromanga Hydrocarbons-- based in Australia. ERH.ax
Here is a link to the stock on the ASX and you can access the news reports here:

http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=on&asxCode=ERH

Here is a link to their website and list of prospects in Brazil. They have found oil in the first well, block 330 on Feb 2008.

Stock price is $0.15 . They seem well funded

http://www.erohydro.com/oil_gas.html

Who is Chuck and what newsletter or service recommended this stock?

ERHYF sold for .37 yesterday. Congratulations. I may have to give Chuck a try.

Nice Sleuthing on this one nanopole. After reading the Penny Oil Speculator teaser they sent me and learning what the stock name was from this site, I bought 15,000 at .14 a couple of weeks ago and it's up to .51 today! That's a 264% increase. Hopefully the good fortune of this company continues like the newsletter says it will.

Thanks for the info Cdchi1.

Everythig you've said and everything I've seen tells me that this company has a huge amount of potential and is about to take another jump.

The only thing that bothers me is the mediocre volume. But I suspect that will change soon. I think I may have to invest a bit heavier in it.

dchanko

that would be a risky strategy...ERH will most likely have announcements before the end of the FY. SP could do anything if these are positive.

Cdchi1

dhanko, i know that, im an aussie lol

News is expected before end of June (assuming they can get teh workover rig before then in which case weekly updates will recommence).

Also not sure there will be as much profit taking end of June this year, because the tax rates are changing on 1 July...ie lower marginal tax rates for next financial year may cause people to defer profit taking until after 30 June.

Cdchi1

Jeff, I own it in my Scotrade account. Had to buy it over the phone, but they got me the pink sheet version.

Thanks for the update, keep them coming. I have a hard time keeping up with that stock and it had been falling a little recently.

Cdchi1,

What other Australian junior mining issues do you like that are worth DD?

spreadtrader

There are several i like (and hold) for long term investments...but right now there is nothing other than ERH I would buy if I had spare cash. Stress on 'I' since I am willing to take the high risk that comes with investing in ERH...as per my post, if 430 disappoints, ERH investors will take a big hair cut.

If you must know, I'm a fan of (all Aussie listed):

- Atlantic Gold (gold stock with a project in Canada - the management are the founders of Plutonic Resources which they built to be the 3rd biggest Aussie gold producer before it was taken over)
- Kentor gold (gold stock with a high grade project in in Krygryz republic with a resource that cant be announced yet because its not up to Australian standards - this will happen by end of year - and it has some geothermal exposure)
- Panax (geothermal play run by Bertus De Graaf who was the founder of Geodynamics)
- Eastern Iron (a low grade iron ore play with bugger all shares on issue - at current iron ore prices, imo this will prove commercial as the iron ore is easily and cheaply upgradeable to a higher commercial grade - company needs to prove this first though)
- Platsearch (iron ore exposure, and 21 joint ventures, and a recession proof explorer, since it gets other companies to spend all the exploration money)

These are all long term investments unlikely to go anywhere in the short term with the market the way it is. Just like ERH when i bought into it over a year ago (happened a little quicker than I expected actually).

Cheers

Cdchi1

Cdchi!

Thanx for the info - I have been dipping into the Aus market in the past few months. Any opinions (long term) on Industrea, Moly Mines and Aurox? I have been buying on dips - good move or dud?

Industrea is a 1 out of 5 positive. Broke the trendline at 0.41 Aus and that is NEVER GOOD. I think this one will hit 0.17. Next support at the April lows at 0.35.

Moly Mines is a 4 for 5. this one broke the trendline at 2.85 and that should have been your signal to bail out. Next stop is 2.45 with the April lows of 1.65 a possibility.

Aurox is a ZERO out of 5 technicals positive. This one broke the trendline in June at 0.87 and would have been your wake-up call. March lows are 0.60 so there may be some support there.

Remember, these are technical comments only. I always use both technical and fundamental when I invest. I know nothing about these three stocks fundamentally. Supply & Demand rule and I would not own these.