DESCRIPTION: Reservoir Capital Corp. is a Southeast Europe-focused project generator, investing primarily in renewable energy. The company holds two hydroelectric projects, Brodarevo 1 and 2, with 55MW of potential capacity undergoing pre-feasibility studies and an application in process for a third at Vrutci with 32MW potential capacity, all in southwest Serbia. Reservoir has also accumulated a substantial portfolio of precious and base metal exploration projects. Reservoir's common shares trade on the TSX Venture Exchange under the symbol "REO" and on the Frankfurt and Berlin exchanges under the symbol "ROC".
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Reservoir Capital is another one that I have had a lot of interest in over time. In fact I've just spent some time with the CEO of Reservoir and I'm hoping to get a chance to look at some of their stuff over in Serbia. We added that in October 2006. So that was quite a while ago and it's done well for us, as well. They're in the green energy section now. They're making agreements whereby Serbia will export green energy into Italy. They're getting power agreements to sell it to the Serbian and Italian governments. They're developing hydro over there as opposed to gas or oil."
View Entire Article: John Pugsley: Playing the Niche
The Energy Report with Marin Katusa (03/04/10)
"As you know, Louis James runs the mining side of our Research Department. This guy lives on the road, and no one kicks more rocks than Louis. He is as critical and smart as they come. He went out to Serbia (both Louis James and I have been to Serbia many times), and I got excited when I read his report, because I know how conservative Louis is. Reservoir Capital Corp. is one of those companies—and I agree 100% with Louis—that you will look back in five years and go, 'Why did I not buy that?'
It could definitely trade at multiples. We're not talking a two or three-bagger. I believe Miles Thompson (Reservoir CEO) will be in my 10-bagger club within five years. He has a very well-respected management team, and we're not just talking about respect from the Casey crew. Rick Rule keeps him in high regard; a lot of the European funds, people know that Miles Thompson is going to deliver.
"Reservoir Capital was a shell corporation added to the portfolio in October 2006. As anticipated, it morphed into an active company concentrating on the acquisition, exploration and development of hydroelectric and geothermal projects in the Republic of Serbia. Currently, the company is developing a 55MW hydroelectric project at Brodarevo in southwest Serbia, has applied for a 32MW license at Vrutci, and now holds four geothermal exploration licenses in the region.
As for the sale of its power, the Italian and Serbian governments have signed an agreement whereby Serbia will export green energy into Italy at prices substantially above those of the local market. Reservoir is engaged in discussions with energy trading groups with the expectation that it can negotiate Power Purchasing Agreements (PPAs) for the sale of electricity into the Italian market and should be able to take advantage of those above-market rates. Pre-Feasibility Studies should be finished in the next month or two and Feasibility Studies by the end of this year."
The Gold Report Interview with Louis James (02/10/10)
"I have the greatest respect for their management, and since Reservoir started out as a gold play in Serbia, I know them well. Marin Katusa, my counterpart in the Casey Energy Division, follows REO now that it's no longer really a gold play. But I can say that Reservoir has shown that it can create deal flow and operate in a hot sector (green energy in Eastern Europe) where it's been difficult for others to maneuver. They've landed significant renewable energy concessions, green-friendly energy that commands a premium price. They know how many megawatts they can generate at some projects. All they have to do is connect the dots. Once they get a power purchase agreement with a green-energy price bonus, the numbers will line up and the market will be able to calculate a value for what they have. That hasn't happened yet, but they're working on it. and when they are re-valued, the potential is enormous. This is a little company and these energy contracts are big business—it's a stock I own, personally."
The Energy Report Interview with Dave Forest (07/09/09)
"Reservoir Capital Corp. is developing run-of-river projects, which is another interesting renewable energy source, in Eastern Europe. They're sort of involved in acquiring earlier stage projects and doing some work to develop them. So there are companies out there sort of using the project generator model as applied to renewable energy." Read full article.
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