Anybody listening to the markets today has likely heard “long-term horizon” more than once or twice. For the most part, long term is what most investors are planning for as they wait for a recovery to begin. With this in mind, thinking about companies that have a longer lead time to market may be a wise idea. The investment may appear less then wise at this point in time, but down the road it may become a play that turns profitable for those that got ahead of the curve.
Tamm Oil & Gas Corp., a development stage oil sand exploration and development company, works to discover and develop oil sand leases primarily in Canada. The company is currently working in the acquisition phase of its exploration process with several larger leases either signed for geological testing or in process.
Although the company is in the initial stages of its exploration program, it is working in a region known for its oil sand deposits. Companies investigating the possibility of vast tracks of oil sands in Canada have been drawn to the Peace River region and found generally positive testing results.
As the company is a development stage company, it is currently working on the assumption that oil sands exist in the region and is acquiring leases for assessment by contracted geologists and other like experts. From a general perspective and with pure conjecture in mind, it would appear that the geological assessment is directed toward how much oil sand is in the leases. In other words, others have already tested the area and are fairly confident about their prospects.
Timing and current events are perhaps two uncontrolled elements that are not on the company’s side. The development of oil sand leases is dictated by many outside forces which have been in flux as of late. Imported crude oil pricing, alternative energy development and the availability of capital all appear to be conspiring against the general development of oil sands as a cost effective crude oil supplement. In time, however, the likelihood of oil sands becoming a cost effective addition to the worlds energy needs is more than likely; it is just a matter of time and persistence.
Ultimately, this particular timing issue may actually be a benefit for Tamm Oil & Gas as it continues its exploration and development processes. Long term may be the correct investment term for the company, but getting in on the ground floor is where the real money is to be made.
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