Energy Investors Search for New Oil in Old Places

Major oil companies are moving to the Bakken Shale—an oil field that stretches down from Canada into North Dakota and Montana, Richard Abbe, co-founder of Iroquois Capital Management, a $250 million dollar fund told CNBC's on Thursday.

USA, Texas, Midland, Permian Basin Petroleum Museum, machinery
Walter Bibikow | The Image Bank | Getty Images
USA, Texas, Midland, Permian Basin Petroleum Museum, machinery

"There's big oil plays," Abbe said, adding, "Occidental Petroleum is in there right now as well as a lot of others."

In addition to Bakken, Abbe is also focused on the Permian Basin, in Texas.

"We've been buying up land down in the Permian Basin. We are buying mature assets that have been given up by the big oil companies in the past. They've been running them successfully and then they have given up on them because they are too small," he said.

The Permian Basin is located in West Texas and the adjoining area of southwestern New Mexico—approximately 250 miles wide and 300 miles long.

It produces 17 percent of the nation's crude oil and two-thirds of Texas' crude oil. Proven reserves of oil in this area are second only to Alaska, which contains 21 percent more oil reserves, according to the University of Texas of the Permian Basin.

"We're buying them now for nothing and basically we are bringing our own teams in and running those businesses," he said.

Oil could trade as high as $120 a barrel and as low as $80, Abbe said.

In addition to oil, Abbe is long on silver, gold and lithium.

Watch CNBC's "The Strategy Session" weekdays at Noon ET.