California Oil & Gas (COGC) is my next big-find within America’s resurgent oil and gas industry. The company has formed a powerful alliance with Chevron Corp. (NYSE: CVX), whereby Chevron will fund 100% of a 33 square mile seismic survey in southern California’s prolific San Joaquin Basin. This is a clear indicator that Chevron anticipates that COGC’s target-area could lay host to the next major discovery to emerge from this important North American oil resource.

The San Joaquin Basin boasts a rich history of numerous oil fields with production of over 100 million barrels each. With oil continuing to hover near all-time highs well above $75 per barrel, a discovery of even half that size would be worth more than $3.75 billion.

Upon successful drilling and completion activities, producing wells will be operated by Chevron utilizing their extensive facilities and personnel in the San Joaquin Basin. California Oil & Gas can be expected to expand this “tip of the iceberg” by deploying the most efficient hydraulic fracturing on the current horizontal drilling plan. California Oil & Gas (COGC) is a Must-Buy at current price levels below $1 per share.

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