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Re:qldlwlbgj,Select Small-cap for Astute Investors


From: Cliff Mccollum
Subject: Re:qldlwlbgj,Select Small-cap for Astute Investors
Date: Thu, 30 Sep 2004 16:43:58 -0500

Karla Sams,

Sequoia Interests

Trading Symbol SQNC PK

What if a company had a product that would allow oil wells to produce much more oil?

What would that stock be worth with todays oil prices close to 50 USD per barrel?

10, 20, 30, 100 USD? and now several of the major oil companies are currently testing the product.

At 0.50 we think SQNC is a homerun.

To solve this problem, the oil industry is looking for new alternatives for increased exploration and production. The clear solution for increased demand and consumption can already be found in the ground, with nearly two thirds of oil left in the ground at US wells, too technically complex or expensive to extract with traditional technologies. Enhanced oil recovery, EOR, is an exciting new frontier in the oil and gas industry which you are going to hear more of in the coming years. SQNCs innovative new product, DiamondFlo, could be at the forefront of this frontier.

SQNC has strong interest from major oil and gas companies for testing and potential licensing of this product, and is in the final stages of the research and development of DiamondFlo. With testing expected to be completed in the next 60 to 90 days, and planned patent application shortly thereafter, announcements from SQNC could cause price gains for this stock over the coming months. What is more, DiamondFlos unique chemical properties, make it an ideal solution for a number of other application in the oil and gas industry, including remediation and environmental cleanup of oil fields, refineries, and storage facilities; an estimated 8.1 billion market. With this revolutionary product in the development pipeline, SQNC has also made some aggressive moves into oil and gas production with its recent acquisition of leases in Pecos Valley, Texas. These operations will act as a testbed for development and validation of the DiamondFlo product and could provide an additional revenue stream and source of cash flow for SQNC.

With the commercialization of its DiamondFlo product looming near, we feel that it is only a matter of time before Wall Street recognizes this stock. What is more, SQNC is positioned within an industry that has seen tremendous upside growth, and is headed for even more appreciation as the global oil crisis demands new production solutions. Over the last twelve months, the oil well services and equipment industry has seen an average price gain of more than 88 percent, and savvy investors in emerging companies have witnessed tremendous pr0fits. We believe that SQNC is one of the most revolutionary new companies on the market. With major announcements stemming from the completion of R and D on DiamondFlo, do you think SQNC could make a nice move in the coming day?.

A Few Reasons to Own SQNC.

1. With its innovative DiamondFlo product, SQNC is positioned to help alleviate the impending oil and gas crisis, with producers struggling to keep up with growing US energy demands, as foreign exploration and production comes under increasing geopolitical pressures. Increased consumption demands have combined with an increasingly unstable international production climate to create some of the highest prices seen at the pump since the 1970s oil embargo, and crude oil prices on the spot market have recently approached the 50 USD mark. As oil companies seek new ways to maximize domestic oil recovery, the chemical EOR approach of SQNC will be a major factor in increasing production and removing dependence on foreign oil.

2. Enhanced oil recovery, EOR, represents the logical next step in expanding domestic oil production, and represents a tremendous and presently underappreciated market potential. Over two thirds of oil in US reservoirs is left unproduced after primary and secondary production, leaving an incredible and untapped source for US energy needs. According to the US Department of Energy, EOR has the potential to recover 35 billion barrels of oil, 50 percent more than the current US proven reserves of 23 billion barrels, and even greater than the US estimated undiscovered potential of 30 billion barrels. With its DiamondFlo chemical EOR solution, SQNC could be ideally positioned to benefit from a renewed focus on production from these untapped oil reserves.

3. SQNC has developed a revolutionary chemical EOR product, DiamondFlo which offers tremendous advantages over thermal and gas EOR methods. Thermal and gas, primarily CO2 injection to stimulate production are costly and require a complex infrastructure, while other chemical EOR products have had limited success and are environmentally damaging. By contrast, DiamondFlo is expected to generate recovery of 20 to 40 percent above current methods, is environmentally safe and meets strict regulatory standards for oil recovery and remediation, and will be available to producers at a comparable price point to competitive products. With introduction of DiamondFlo to the market following completion of testing and development, SQNC could revolutionize the oil and gas industry with this innovative approach to enhanced oil recovery.

4. In addition to its principal application in EOR, SQNCs DiamondFlo product has additional applications in the 8.1 Billion oil and gas remediation market. During the testing process, DiamondFlo has demonstrated exceptional remediation properties, with static remediation tests determining that it removed more than 80 percent of hydrocarbons from soil with no significant hydrocarbon emulsion, mixing of oil and water. This discovery paves the way for eventual application in environmental cleanup of oil facilities or spills, and opens up a tremendous new market for SQNC. Since 1992, the American Petroleum Industry estimates that over 90 billion has been spent by the oil and gas industry to protect the environment, with 8.1 billion spent annually in environmental expenditures.

This publication is an independent publication with the goal of giving investors the necessary knowledge to make rational and profitable investment decisions. Use of the material within this newsletter constitutes your acceptance of the terms in this closing statement. This publication does not provide an analysis of the Companys financial position and is not an solicitation to purchase or sell securities Investing in securities is speculative and carries risk. It is advisable that any investment should be made after consulting with your investment expert and after reviewing the financial statements of the company. The information in this report is believed to be reliable, but its accuracy cannot be assured. Past performance does not insure similar future results. This is not purported to be a complete and thorough analysis of the featured company and reccomends a complete review of the Company's regulatory filings at secgov The information herein contains future looking statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected continual growth of the featured company. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be future looking statements. Future looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Future looking statements in this action may be identified through the use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions may, could, or might occur. The publisher discloses the receipt of fifty nine thousand five hundred dollars from a third party, not an officer, director, or affiliate shareholder of the company for the preparation of this online report. Be aware of an inherent conflict of interest resulting from such compensation due to the fact that this is a paid publication. All factual information in this report was gathered from public sources, including but not limited to Company Web sites, SEC filings and Company Press Releases. This information is believed to be reliable but can make no absolute certainty as to its accuracy or completeness. As with many microcap stocks, todays company has additional risk factors worth noting. Those factors may include an accumulated deficit since its inception, a negative net worth, reliance on loans from officers, directors and a majority shareholder to pay expenses, nominal cash and the need to raise capital. The company may have a going concern opinion from its auditor.

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