California Oil & Gas (COGC) has now commenced the 35.2 square mile 3-D seismic survey on its East Slopes Project, located in California’s prolific San Joaquin Basin, in which Chevron is covering 100% of the costs. If you did not buy your COGC shares on my initial recommendation in early October, now is the time to load up below the $1 level before the first share-price move.

The San Joaquin Basin boasts a rich history of numerous oil fields with production of over 100 million barrels each. With oil continuing to trade near record-highs above $90 per barrel, a discovery of even half that size would be worth more than $4.5 billion. California Oil & Gas now reports that the targeted oil reservoirs on its East Slopes Project are highly porous and permeable at depths of 1,200 to 3,000 feet and, thus, are projected to be relatively inexpensive to drill.

The San Joaquin Basin is America’s original Super-Field, and the East Slopes Property could prove to host a major new discovery in the early drilling rounds. The current 3-D seismic survey is the first to be carried out on the project area. And as mentioned, Chevron Corporation (NYSE: CVX) is picking up the bill for the survey costs in order to secure a 50% interest in the project – thus, the upside potential of the East Slopes Project is immense. COGC and its partners will have the option to earn up to a 50% interest by drilling four wells on mutually agreed upon prospects. COGC expects that the data-acquisition phase of the survey will be completed during the current fourth quarter with drilling projected to commence in the first quarter of 2008.

We have now entered a rare and brief window in which we can purchase the early COGC shares well below the $1 level right before the start of phase-one drilling. Buy California Oil & Gas (COGC) now at current price levels and prepare to protect initial profits at a triple. Then, plan on holding the remainder of your position for the longer-term.

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