MCKE is sitting pretty, I’m hoping for a nice run for it

It does not take a genius to know that America is facing a severe energy crunch. Oil imports continue to skyrocket and natural gas production in the US peaked in 1971.  Yes, that was 1971! Until recent years, environmentalists and politicians had made new exploration almost impossible in the United States.  Currently, 80% of all wells are drilled for gas, not oil, but in spite of this increased effort, the production decline has not been reversed. Our alert company is one of those companies that is working to reverse the trend. (Source:North American Natural Gas: published in the journal, Natural Resources Research.)

Today’s alert Company is Morgan Creek Energy Corporation (MCKE), an independent exploration and development company created by an expert management group with a strong history of success in the oil patch. According to the company, MCKE has acquired significant land positions in two project areas and plans to be able to initiate drilling operations in the last quarter of 2009.

The good news for MCKE is that the demand for natural gas in North America is increasing. Sixty percent of all homes in the United States are heated with gas, and seventy percent of new homes are designed for natural gas consumption. Natural gas, it seems, is the fuel of choice for electric power production due to its clean burning qualities. Ninety percent of all new power plants developed by 2002 or later are gas-fired. (Source: IBID)

Another major contributor to current gas shortages is the lack of new supplies from northern Alaska and northwestern Canada. According to the company, a pipeline to Alaska’s gas is roughly 12 to 15 years away, and Canada’s pipeline is still several years away.

MCKE has two major projects that are currently in the works: OIL in Oklahoma and GAS in New Mexico!

Frio Draw Prospect - Gas Project in New Mexico

Morgan Creek Energy has retained a 100% interest in the 13,252-acre Frio Draw Prospect and intends to fund exploration drilling on the prospect. According to geologic and test data, the company believes that approximately 180 wells can be drilled on the Frio Draw Prospect acreage. Following a planned initial well drilling and completion, Morgan Creek Energy’s management team expects to establish a set of drilling initiatives on the Frio Draw based on technical data and drill results.

Company President Peter Wilson states, “We have seen a tremendous upswing in the energy markets while drilling costs have gone down drastically. This gives Morgan Creek Energy the opportunity to fund its own drilling initiatives and therefore control the entire process.”

Full press release:  Click Here

North Fork 3-D Prospect, Oil Project in Oklahoma

MCKE has entered into a Definitive Agreement, with Bonanza Resources Corporation (”Bonanza”), for an option to earn a 60% working interest of Bonanza’s 85% working interest in the North Fork 3-D prospect in Beaver County, Oklahoma.

Bonanza Resources has completed a multi-component interpretive 3-D survey on approximately 8,500 acres to image the Morrow A and B sands. The 3-D interpretive survey has identified 40 drill ready target locations. Using this data as a basis, the Company plans to proceed with exploration drilling on the North Fork 3-D prospect in 2009.

Company President Peter Wilson states, “This agreement and program are important to Morgan Creek Energy because they help set a new direction for the Company going forward. I expect this to be one of several key projects that give Morgan Creek the ability to add solid value in this energy cycle.”

Full Press Release: Click Here

According to MCKE, they are continuing their efforts to seek, acquire and exploit all forms of hydrocarbonates (oil and gas).  They intend to begin drilling operations on both properties in 2009 and are seeking other qualified land prospects to create a path to immediate revenue.

The Chart

I am seeing several things from the chart:

• STRONG increase in volume coming in to the stock lately
• Stock is not oversold
• MACD is strongly bullish
• The stock has come off its recent high of $1.00

With the strong price action in the stock lately and increases in volume, I would definitely watch this company. Just a few weeks ago, I shared the story of AVRO Energy, Inc. (AVOE).  They are a natural resource company that is similar in many respects to MCKE.  If you remember, AVOE got HOT and saw a 500% gain in the stock followed shortly by a 1400% gain. Of course, I can not even begin to claim that MCKE would make such a move, but the potential is certainly there for any oil and gas stock….as evidenced by AVOE.

Given the strong uptrend of the stock, the pattern may very well continue.  However, with a stock that has run as far and as fast as MCKE, I would make sure to set a tight stop on it in case the price action goes against my members.

Here is MCKE’s website for your own due diligence:  MCKE Website

I would recommend doing your due diligence and watching this stock closely.  If it catches fire, you will definitely want to be in on ANOTHER winning stock from me. 

The email comes at 9:30 and my Twitter page posts at the same time.  I don’t want you to miss a single WINNING stock pick!

Good luck and good trading

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