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Email from the CEO...
I've been pestering the ceo pretty good and after the last email I figured I'd leave him alone for a while..Last night out of the blue I received the following:
-------------------------------
From: Ron Brooks <ronbrooks@standardoilusa.com>View Contact
To: Spark <sparkersss@yahoo.com
Hi Spark
I just wanted to update you , Standard Oil is working on contracts with a group that will be the future direction of our company. We are still drafting docs so our press release may
be sometime next week. Hope you understand that we want everything in place before this press release goes out over the wire..
Ron Brooks CEO
----------------------------
I suggest that people do their own due diligence and email or call the company
News Watch!
Standard Oil Co. (SOCU.pk) rumors abound that the company will release industry shattering news within a week as this company moves forward and rebrands itself in a makeover from the company that was dismantled by the Gov’t in the 1960’s for being too big.
Unconfirmed rumors that current oil production and revenues will be augmented by a recently discovered technology in the industry. The compnay has been very closed about developments however the August 9/10 press release offers us a glimpse of the future
Upon completing, the purchase of these Natural Gar / Coal Bed Methane Properties, Standard Oil will quickly begin to realize revenues from them within about 60 days. We estimate these revenues to run close to $30 Million per year.
copy and past this information to your favorite boards
BERX oil play. .865 now. Almost a double in the last month with no news or hype. Some folks are accumulating. This one is worth keeping a watch on.
FECOF .034 ... BTW spoke w/ Co. yesterday, NO dilution now or any time soon (they still have the $2.2MM from the PHILEX PPM at $.50,) Investor update on the way and a new website coming
FECOF .022 RADAR for DOMS to leave ask.... very nice vol here
Why these few oil stocks have huge upside in 2011
http://www.stockhouse.com/Columnists/2011/Jan/10/Why-these-few-oil-stocks-have-huge-upside-in-2011
cool thanks...
Check out a 2 year chart to see what you can expect. The main thing that will send the chart turning is the extension of the Turnbull aquisition note at VERY favorable terms. Alex Tawse, the CEO of USOG is an accountant and when the time is right will shift the focus of the company from tax savings to profitability. Right now USOG is growing!
http://ih.advfn.com/p.php?pid=nmona&article=45895362
WOW! can you share a little DD with the jop board?
I'm looking for 2-5% daily gains from USOG for the next year with the occassional consolidation day and then a price explosion on announcement of a 3rd aquisition or other material event. It's a great place to park some funds and forget about it imo.
CoreStream Energy, Inc. Announces Successful First Drilling Effort
Preparing to Drill Second Well on 1,600 Acres of Prime Oil and Gas Exploration Land
IRVING, TX--(Marketwire - January 7, 2011) - CoreStream Energy, Inc. (PINKSHEETS: ZLUS) today announced the successful drilling of the State Lease #2 well in the Catahoula Lake area in LaSalle Parish, LA, an area of significant proven reserves that has seen considerable success in the past. CoreStream Energy, Inc. maintains a non-operated working interest in this well. The well was spudded on December 28 and drilled in the Wilcox Sand formation at a total measured depth of approximately 4,695 feet with a directional drilling angle of 13° beginning at approximately 3000 feet. Once the well is completed, it is expected to be productive, although a projected production rate is not known at this time. Both the well logs and core samples indicate strong oil potential in two different pay zones. Natural gas production is not expected to be significant. All investors who participated in the exploration phase of the well are expected to participate in the completion phase as well. Due to these ongoing completion activities, the final calculation of CoreStream Energy, Inc.'s net working interest percentage has not been finalized. The well is in the process of completion and is expected to begin production by the end of January. This well is CoreStream's first of many planned investments in this established and steady production area. CoreStream Energy plans to continue to pursue a strategy of investing in intermediate depth drilling in low risk fields both on an operated and non-operated basis.
This well is located on a leased parcel of 1600 acres of prime oil and gas exploration land. Based on this week's successful effort, CoreStream is moving immediately to begin the process of exploring the next best geological opportunity within this leasehold. Chris Rainbolt, CoreStream's CEO, is extremely pleased with this effort and commented, "The interpretation of the core analysis of the State Lease #2 well provides a very strong indication of the consistency of productivity inherent in so many of the existing wells in the Catahoula Lake area, and we believe this success demonstrates that our investment strategies are on target. I wish to thank all those who gave around-the-clock effort during the holidays to help us deliver this initial major success for CoreStream and its shareholders. Because we were able to commit to this project before the end of 2010, this effort will bring new opportunities to CoreStream that would not have been made available had we not moved so quickly on this opportunity. We are extremely pleased to have successfully obtained rights to such properties in this very productive area at a time when oil demand only appears to be increasing worldwide."
Further details regarding CoreStream's net working interest percentage and production rates will be reported to shareholders when they become available. Due to the importance of this first project, and our commitment to inform our shareholders in a timely manner, CoreStream elected to issue this initial and limited report of well success and company operations. A more comprehensive report will be available in the coming weeks.
Regarding our previously reported lease to drill the Sanders #1 well, CoreStream still intends to drill in this very promising area and has begun the process of identifying the desired geological profile for a drilling site within the lease. While the annual flooding of Catahoula Lake provides hunters with one of the top duck hunting sites in the country, such flooding will postpone drilling activity until later in the spring of 2011. Shareholders will be updated as developments warrant.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Irving, TX is an independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas from onshore conventional properties in Texas, Louisiana, Oklahoma and Mississippi. It currently trades on the OTC Markets as ZLUS.PK with a symbol change expected soon from FINRA.
Forward-Looking Statement:
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). Such statements include those concerning CoreStream Energy, Inc.'s strategic plans, expectations and objectives for future operations. All statements included in this press release that address activities, events or developments that CoreStream expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions CoreStream made based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond CoreStream's control. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Statements regarding future production, revenue and cash flow are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, commodity price changes, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes and the potential lack of capital resources. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. These forward-looking statements are only made as of the date of this press release and CoreStream Energy, Inc. does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Contact Info:
CoreStream Energy, Inc.
IR@CoreStreamEnergy.com
(214) 624-5200
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Technorati: Health Wellness
SOCU..I asked the ceo what the share situation was exactly..he told me that the float is only 85 million shares and 915 million are in the outstanding but are restricted - held by himself and 2 other Board members. He said there was no need for dilution.
So only 85 million shares are out on the open market.
FECOF .018 x .019. DO THE DD
SOCU..heating up!~
Just bought some GNZ.V - a junior oil and gas play that looks interesting-----
USOG...nice news after the bell...should get a nice kick in the morning...
http://ih.advfn.com/p.php?pid=nmona&article=45894471&symbol=USOG
SOCU holding strong. Chart setting up very nicely. Great entry point for anyone looking for an oil play with relatively low float and PR's forthcoming.
DPDW - They got a nice shop, with all sorts of impressive stuff going on. I wish I was close enough to see for myself!
i drove by their facilities last week, pretty impressive actually...i was driving on I-10 and i saw Deep Down Inc. and i was like hey that is a penny stock i have heard of lol...lots of expensive looking equipment
TRMAQ Trico Marine Services, (.125) Oil services Q stock. It's a q so it could be a bust or could be 4 digit % huge. It should be played accordingly.
TRMAQ is an integrated provider of subsea, trenching and marine support vessels and services.
Trico files for Chapter 11 8-26-10
http://www.otcmarkets.com/stock/TRMAQ/news
Website - http://www.tricomarine.com
Pink Sheets - http://www.otcmarkets.com/stock/TRMAQ/quote
IHUB - http://investorshub.advfn.com/boards/board.aspx?board_id=14098
I always liked that company, but havn't been able to time the trade ...ugg
DPDW is a great little company.
It ain't easy, but I've been trying to like them for almost three years LoL!
DPDW Deep Down, Inc. - .10 RADAR... good momo IMO
GMR General Maritime (3.35) Oil tanker play, should be pretty close to bottom. Used to pay a dividend. Should bounce back when oil does.
General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea.
General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 37 tankers - seven VLCC, twelve Aframax, twelve Suezmax tankers, two Panamax and four Product tankers - with a total carrying capacity of approximately 5.6 million dwt.
http://www.quotemedia.com/results.php?qm_page=78846&qm_symbol=gmr
http://www.generalmaritimecorp.com/
Seems like it is heading nowhere but up-
hard to believe it was down below $40.00-
Cycle analysis said it was going there too....
Huge volume already
USOG .004 on 25MM shares traded
HUNTER OIL AND GAS CORP (UHO)- Excelaron LLC, Huasana New Joint Venture Site!
UHO http://www.excelaronhuasna.com/
Hunter Oil and Gas Corp News Releases
http://www.unitedhunteroil.com/news_releases.htm
November 9, 2010
United Hunter Oil and Gas Corp. Commences Canadian Well Re-Completion Program
September 15, 2010
United Hunter Oil & Gas Corp. Announces New Trading Symbol “UHO”
September 13, 2010
Mr. Ernie Pratt, New Director For The Corporation.
July 19, 2010
Vesta Capital Announces Engagement Agreement with The Abraham Group LLC
July 9, 2010
United Hunter - Atlee Buffalo Working Interest
July 9, 2010
United Hunter - John Masters Appointment
June 22, 2010
Vesta Capital Corp. - AMENDED Notice of Meeting and Record Date
May 31, 2010
Vesta Capital Corp. Announces the Filing of Its Interim Financial Statements and Accompanying MD&A
May 12, 2010
Vesta Capital Corp. hires VP of Exploration and Development and Brisco Capital for IR
May 03, 2010
Vesta Capital Corp. Announces Completion of Qualifying Transaction and $9 Million Financing
April 1, 2010
Vesta Capital Corp. Enters Into Amended And Restated Definitive Agreement For Qualifying Transaction
January 13, 2010
Vesta Capital Corp. Enters Into Definitive Agreement For Qualifying Transaction
Historical Prices
Date Open High Low Close Volume Adj Close
2010/12/31 0.11 0.11 0.11 0.11 - 0.11
2010/12/30 0.11 0.11 0.11 0.11 - 0.11
2010/12/29 0.10 0.11 0.090 0.11 9,000 0.11
I like the way she moves.....
Just to scare those kids who aren't old enough to trade, LOL
Happy New Year, btw.
Max Power, a ZLUS Valuation for All…
Within your post below on 28 Dec 10, you had shown how ZLUS will be drilling in the same area that ”XTO Energy” had drilled their well for oil and gas. XTO Energy was at $80.00 per share and had gotten bought out by Exxon Mobile. This is huge for us here in ZLUS:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58197382
Then later, which is even more huge within your other post on 30 Dec 2010, you confirmed from the ZLUS IR that ZLUS has already mobilized to the site and has already begun to drill:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58261491
Because of this quick movement of events with ZLUS, I think we must now take what you have posted below back on 28 Dec 2010 under consideration to be able to help us to logically deduce a fundamental valuation for ZLUS when the time comes as it appears to be rapidly approaching:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58198140
As you had stated in your post above, one good well can produce up to 5,000 barrels a day. You mentioned how there was a company in Texas that was getting 6,500 barrels a day out of one of their wells in North Dakota. I think we can use your thoughts posted as a baseline for helping us to be able to assess a fundamental valuation for ZLUS as the time approaches where they will be releasing to the public just how many barrels a day they will be producing from this one well. So, consider below if a certain amount of barrels of oil are produced considering a rate of $90 per barrel…
5,000 barrels per day x $90 = $450,000 per day
4,000 barrels per day x $90 = $360,000 per day
3,000 barrels per day x $90 = $270,000 per day
2,000 barrels per day x $90 = $180,000 per day
1,000 barrels per day x $90 = $90,000 per day
I researched that area for where you stated that ZLUS is drilling 8 miles from the same area where XTO Energy was drilling to produce enough oil to be bought out by Exxon. I like our chances for success for two reasons:
1.) ZLUS has just begun drilling in an area that is highly proven.
2.) XTO Energy had produced billions of dollars in oil and natural gas from that same area.
THIS IS ABSOLUTELY HUGE IN MY OPINION!
Sorry for the caps, but I was getting a little carried away because I am kind of getting the feeling that investors still is not quite seeing what could be happening here with ZLUS. The family name (Rainbolt) and their association within the oil and gas industry for over 100 years should be a big enough hint for all that something very big ”could” forming.
Consider using the fundamental valuation that I will show below as a gage to determine our worth here in ZLUS once the numbers are released from the company’s drill program. I think I will consider a very conservative amount of 3,000 barrels produced per day from the logic posted above and below considering the amount of oil produced from the property in close proximity of our property. As reported below, if XTO Energy can produce 65,600 thousand barrels of oil per day, then I like ZLUS chances of producing at least 3,000 barrels of oil per day considering their property is only about 8 miles from where XTO Energy produced the bulk of their barrels of oil:
http://explorationanddevelopment.energy-business-review.com/news/xto_energy_posts_486_million_net_income_in_q1_2009_090506
Before I explain how we should consider a fundamental valuation for ZLUS, I think we should further define the importance of our property being right next to the achievements of XTO Energy’s properties.
XTO Energy, before being acquired by Exxon in 2010, was among the top independent oil and gas producers with earning $9.0 billion in revenue and net income of $2.0 billion in 2009. Exxon acquired XTO Energy in a deal worth $41 billion. A majority of XTO’s revenue came from natural gas wells in Eastern Texas/Louisiana and the Permian region, with the two regions accounting for half of the company’s revenue in 2009. XTO Energy operations had primarily produced for natural gas wells with 532 million Mcfs of natural gas and 17 million barrels of oil which all of the above info can be verified within the link below:
http://www.wikinvest.com/stock/XTO_Energy_(XTO)
http://www.zacks.com/stock/news/36152/Exxon-XTO+Energy+Merger+Completed
I think ZLUS needs to be fundamentally valuated from two perspectives; oil and gas. Let’s tackle the oil valuation first.
As I had mentioned above, I will use 3,000 barrels of oil per day for the reasons I stated above. For those feeling that the amount is too low or high, simply use the substitution property to make things match to your desire. The ultimate numbers will be plugged in officially within the company’s financials upon releasing their official numbers. While we wait, below is the format to consider…
3,000 barrels of oil per day x $90 = $270,000 per day
$270,000 per day x 30 days = $8,100,000 per month
$8,100,000 per month x 12 months = $97,200,000 per year
From the $97,200,000 amount of oil revenues, let’s considered a conservative 25% Net Profit Margin which would factor all Net Expenses to be captured within the amount of $72,900,000 for a 75% Net Expense margin which should conservatively cover all Expenses. This would equate to Net Profit/Income of $24,300,000 which now can be used to divide by the ZLUS Outstanding shares amount of 958,535,856 shares to derive an Earnings Per Share (EPS):
EPS = $24,300,000 ÷ 958,532,856 shares
EPS = .0253
Now we must consider multiplying the EPS with a P/E Ratio to determine where ZLUS should fundamentally trade with knowing that a P/E ratio is a growth rate for the stocks that exist and trade within the same industry and sector as ZLUS. Within the link below, we can clearly see that the P/E ratio for the applicable Oil and Gas Industry is 11.90 of which all of the other industries within it Basic Materials Sector have P/E ratios of much higher numbers:
http://biz.yahoo.com/p/1conameu.html
http://biz.yahoo.com/p/123conameu.html
Because of this, I think it’s fair to use 12 as a conservative P/E Ratio. So, consider below for deriving where ZLUS could possibly be fundamentally justified for trading…
.0253 EPS x 12 Conservative P/E Ratio = .303 per share
This means that ZLUS could very well fundamentally be worth and trade in the area of .30+ per share from just the results from this one well that is being drilled.
Now throw in the fact from that area of which ZLUS is drilling that XTO Energy generated the bulk of their $9 billion in Revenues right next door to their area of which the bulk of those Revenues were from gas versus oil. XTO Energy only generated 17 million barrels of oil from that area which is a lot for us, but compared to the 532 million Mcfs of gas they had generated, it was a small amount to them. According to the US Energy Information Administration, natural gas spot price at Henry Hub for 2011 is projected to be $4.33 MMBtu:
http://www.eia.doe.gov/emeu/steo/pub/contents.html
http://www.eia.doe.gov/emeu/steo/pub/gifs/Fig4.gif
Below is also a conversation calculator that might be helpful for those wanting to further calculate other options to derive further valuation to include gas:
https://www.hessenergy.com/dashboard/conversionChart.aspx
Here is also an Energy and Oil prices table from Bloomberg that might be helpful:
http://www.bloomberg.com/energy/
Considering that our ZLUS property that is currently being drilled right now is located 8 miles from that same area, I think it’s fair to take that .30+ per share amount and multiply it by at least 2 or 3 times that amount conservatively speaking after throwing in what could come from the gas within the area.
So let’s see, ZLUS has basically reduced tremendous amounts of debt to where ZLUS is virtually debt free, a share reduction is coming, settled a major lawsuit which was ruled in their favor to receive $2.4 million, recently commenced drilling on their property within the same location of XTO Energy’s property, and is going to provide their shareholders an update on 3 Jan 2011. I think I like the ”Risk versus Rewards” ratio here with ZLUS.
ZLUS is an oil and gas company. As like the mining companies, their success will reside with what the company pulls out of the ground which makes the risk somewhat similar in nature. We here now in ZLUS is risking that because of the location of their properties that ZLUS will mirror a similar pattern of success given the high probability of success from proven drill programs within the same area. Still, this is why the ultimate success of ZLUS will reside within ZLUS. I still must say that based on the due diligence (DD) that has been posted above and within the ZLUS forum that I truly like our chances for something very big to happen here with ZLUS.
For those who are new to ZLUS, I highly recommend that you take your time and read the posts below which should help you to get started with some initial DD on what’s happening:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58032949
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58311051
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58044609
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58113740
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58034316
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58130673
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58130767
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58130812
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58131037
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58131394
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58130548
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58132765
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58132918
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58141499
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58130911
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58130719
Everyone, please understand, this is how I am seeing things here with ZLUS. Understand too that what I have posted above is not the gospel as it will be up to ZLUS to produce and report the numbers to substantiate anything I have posted. However, as for now, what I have posted could be used as a framework to help us all gage where ZLUS should fundamentally trade once they report the numbers from their operations which I am very confident that we ”should” be hearing something very soon. A major update is scheduled for 3 Jan 2011. I could be wrong, but I think that those who don’t see it now, will see it later here with ZLUS.
v/r
Sterling
Oil Poised to Rally Past $97 on Bullish Flag Breakout: Technical Analysis
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Paul Burkhardt, On Wednesday December 29, 2010, 7:02 am EST
Crude oil may rise to $97.90 a barrel after breaking higher from a “bullish flag” formation, according to a technical analysis by Kase & Company Inc.
February crude futures rising from the flag formation last week was “the most important factor” for the projected gain, said Dean Rogers, an analyst at the Albuquerque, New Mexico- based consulting firm. “The move up may be choppy, especially during the low-volume holiday week, but should test $94 over the next few weeks.”
A bullish flag pattern shows trading consolidating within a narrow range, preceded and followed by sharp rises. The latest flag formed from Dec. 8 through Dec. 20 was very similar to earlier flags that formed in September and October, both of which broke higher and went on to make new highs, Rogers said in an e-mail.
If prices decline, the first support level is at $90.60, which should hold, Rogers said. “A test of support as low as the $87.43 swing low could take place without significantly dampening the likelihood of a continuation higher,” he said.
Crude oil for February delivery rose 49 cents, or 0.5 percent, yesterday to $91.49 a barrel. The contract reached $91.88 on Dec. 27, the highest intraday price since May 3.
To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
©2010 BLOOMBERG L.P. ALL RIGHTS RESERVED
your picture is scary...
Not only watching, already holding shares from 2008!
There's great speculation about the upcoming drilling in Congo (Q1/Q2 2011).
And maybe we get the results finally of Namibia block 1711, and an follow-up drilling program to be done (Hartmann prospect?)!
Oil's surge in 2010 paves the way for $4 gasoline
Price of oil rises 30 percent in 2010; gasoline prices could hit $4 a gallon in 2011
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Companies:BP p.l.c. Common StockChevron Corporation Common StocTotal S.A.
Topics:Commodities
FILE - In this Aug. 4, 2010 file photo, a gas pump nozzle is shown, in Portland, Ore. Oil prices slipped further below $90 a barrel Friday. Dec. 31, 2010, as investors took profits amid light year-end trading volume. Despite the fall, oil prices are set to end the year around 12 percent higher than where they started _ a clear signal that the global economy has returned to growth following the worst recession since World War II .(AP Photo/Rick Bowmer, file)
Related Quotes
Symbol Price Change
BP 44.17 +0.28
CVX 91.25 -0.35
TOT 53.48 +0.10
Chris Kahn, AP Energy Writer, On Friday December 31, 2010, 10:03 pm EST
NEW YORK (AP) -- The price of oil is poised for another run at $100 a barrel after a global economic rebound sent it surging 34 percent since May. That could push gasoline prices to $4 a gallon by summer in some parts of the country, experts say.
Flying, shipping a package and ordering a pizza all likely would get more expensive in the new year if that happens and companies pass along higher energy costs. Some economists say rising energy prices will slow economic growth.
The U.S. is the world's largest oil consumer, but prices since spring have been on a roll primarily because of rising demand in developing countries, especially China. China's oil consumption is expected to rise 5 percent next year; that compares with less than 1 percent growth forecast for the U.S.
Benchmark oil for February delivery rose $1.54 on Friday to end the year at $91.38 per barrel on the New York Mercantile Exchange. It reached $92.06 earlier in the day, the highest since Oct. 6, 2008. Nationwide gasoline pump prices now average $3.072 per gallon.
Gasoline expert Fred Rozell predicts that 15 states -- including Alaska, Hawaii, Connecticut and Rhode Island -- will see gasoline prices top $4 a gallon by Memorial Day. "A dollar more per gallon isn't that much -- probably about $750 more per year for each motorist, but there's a psychological aspect to gas prices," he said. "People are going to be up in arms about this."
Higher oil prices have fattened oil company profits. Excluding BP PLC, the four other major investor-owned oil companies posted combined profits of $59.7 billion in the first nine months of the year, a 49 percent increase from the year before. Exxon Mobil Corp., Royal Dutch Shell, Chevron Corp. and Total SA are expected to earn $81 billion for the full year.
The fifth oil giant, BP, was held responsible for the largest offshore oil spill in U.S. history and booked $39.9 billion in charges related to the disaster. Excluding special expenses like the Gulf of Mexico spill, analysts say the company will still earn $20.2 billion in 2010.
"There's nothing this industry can't survive," Oppenheimer & Co. analyst Fadel Gheit said.
The price of energy and other commodities shifted into high gear in late August when Federal Reserve Chairman Ben Bernanke signaled that the central bank was prepared to
stimulate the economy by buying government bonds. The $600 billion program didn't start until November, but speculators had already starting bidding up the value of asset classes like oil.
A further oil price spurt came in late November as it became clear that Congress was likely to extend for two more years tax cuts set to expire at the end of the year.
The Organization of Petroleum Exporting Countries is capable of raising output, if it needs to, by more than five million barrels per day. Still, Morgan Stanley estimates that the rising energy needs of China and other emerging economies will consume about half of that amount over the next two years. That could create supply pressures similar to those that preceded the price spike of 2008, when oil soared to $147 a barrel.
John Hofmeister, former president of Shell Oil and author of "Why We Hate The Oil Companies," predicts Americans will pay $5 per gallon for gasoline by 2012. Other experts say that's a long shot.
"That means oil close to $200" per barrel, analyst and trader Stephen Schork said. "We can see it, but we could also see a global depression, too."
In other Nymex trading Friday, natural gas for February delivery rose 6.7 cents to settle at $4.405 per 1,000 cubic feet. Unlike oil, natural gas prices are less than half where they were in 2008. That's due largely to the technological advances that allowed energy companies to unlock huge deposits in underground shale formations in the U.S.
Heating oil for January delivery rose 5.83 cents to settle at $2.5437 per gallon and gasoline for January delivery added 6.14 cents to settle at $2.4532 per gallon. In London, Brent crude increased $1.66 to settle at $94.75 per gallon.
APEUF .1035---have a look-see....
http://www.archerpetroleum.com/
ZLUS and USOG for 2011 - I like!
USOG .003s up again... break that and watch out!
FECOF .0155 - My Favorite Jr O&G. Has a large interest in a HUGE Asset... shooting 3D Q1 2011! DO THE DD
I'm ALL IN USOG & ZLUS, about 50/50. Sold everything else with a bid! Happy New Year everyone!!!
That TVI Pacific deal could be sweet.
They are already a profitable copper producer.
Annual production of approximately 20 million pounds Copper, 10,000 ounces Gold, 500,000 ounces Silver. New Zinc circuit comes online next month, January 2011.
Picking up a late stage oil prospect like this could make them one of the best diversified natural resource plays out there.
TVI Pacific Inc. (.1289) and TG World Energy Corp. Announce Arrangement Agreement for the Acquisition of TG World Energy Corp. by TVI Pacific Inc.
CALGARY, ALBERTA -- (MARKET WIRE) -- 12/23/10 -- TVI Pacific Inc. ("TVI") (TSX: TVI) (OTCQX: TVIPF) and TG World Energy Inc. ("TG") (TSX VENTURE: TGE) announced today that they have entered into a definitive arrangement agreement (the "Arrangement Agreement"), under which TVI has agreed to acquire all of the outstanding common shares of TG not owned by it as of the effective date of the acquisition on the basis of 0.67 of a TVI common share for each TG common share (the "Transaction"). The Arrangement Agreement provides that the Transaction will be structured as a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement").
In addition, TVI has agreed to purchase 29,650,000 TG common shares and invest $1,317,500 by way of a convertible promissory note to assist TG in financing its immediate obligations.
TVI's principal assets are its interest in the producing Canatuan copper-zinc mine in Mindanao, Philippines, its interest in the Balabag epithermal gold/silver deposit also in Mindanao and its interest in a broad array of prospective mining tenements in the Zamboanga Peninsula, Philippines.
TG's principal assets are its interest in an offshore oil and gas concession located in the Philippines, its interest in a joint venture covering certain oil and gas prospects located on the Alaska North Slope and its interest in a joint venture with an affiliate of China National Petroleum Corporation relating to exploration prospects in Niger, Africa.
Details of the Transaction
Upon completion of the Transaction, all TG common shares not owned by TVI at such time will be automatically exchanged on the basis of 0.67 of a TVI common share for each TG common share. The consideration to be received by TG shareholders pursuant to the Arrangement represents an approximate 48% premium over TG's 20-day volume-weighted average trading price, and an approximately 78% premium over TG's closing price as at December 22, 2010.
Upon completion of the Transaction (and after giving effect to the private placement transactions described below), TVI will have approximately 577.9 million common shares issued and outstanding, of which current TVI shareholders will own approximately 84.4 % and former TG shareholders will own approximately 15.6%.
The total value of the Transaction to TVI has been estimated at $13.5 million, consisting of a combination of cash to be invested in connection with the purchase of TG common shares and TG convertible note and the common shares of TVI to be issued upon completion of the Arrangement (with each such TVI common share having an ascribed value equal to TVI's 20 day volume weighted average trading price of $0.12).
Click here to view a Snapshot of the Transaction Details
Business Rationale for the Transaction
In authorizing the Transaction, the TVI Board of Directors determined that the acquisition of TG would allow TVI to leverage its extensive relationships in the Philippines by entering the Philippine oil and gas sector. This could provide TVI with access to a second cash flow stream that would help to offset TVI's exposure to base and precious metals commodity pricing risk.
The TVI Board of Directors believes that this Transaction will allow TVI to capitalize on broader development opportunities opening up in the Philippines.
Following completion of the Transaction, TVI is expected to:
-- have a second resource base, which will include additional assets in the
Philippines; and
-- have an attractive mix of production, development and exploration stage
resource assets.
"We believe that the Transaction represents an attractive opportunity for TVI shareholders," said Cliff James, President and CEO of TVI. "TVI has a strategic need for an acquisition to expand its cash flow sources, but high commodity prices are making advanced acquisitions in the Philippines mining sector difficult to secure. This opportunity will also allow TVI to build scale and scope through an investment in an additional resource that is expected to help mitigate the risks associated with a single commodity."
"The TVI Board of Directors views the acquisition of TG, including its assets in the Philippines, as an important addition to TVI's existing portfolio, "added Brian Cramm, the Chairman of the independent Special Committee of TVI's Board of Directors. "The combined cash flows from operations should allow TVI to pursue production from wells drilled within the offshore Philippines concession, to continue the Company's mining exploration and development activities on the North Zamboanga tenement package and to pursue other resource opportunities."
Mr. Wayne Thomson, Chairman of TG added, "the planned combination represents a unique opportunity for TG's shareholders. The Transaction will merge anticipated cash flow from the offshore Philippines wells (and possibly North Tarn, Alaska) with a corporation that will have the financial and technical capacity to move TG's oil and gas projects forward. TVI is a well-managed Canadian mining company with roots going back over 15 years. TG is pleased to be able to offer it shareholders an opportunity to become a part of this larger and stronger enterprise".
Private Placements
Subsequent to the execution and delivery of the Arrangement Agreement, TVI entered into a subscription agreement with TG (the "TVI Subscription Agreement"), which provides for TVI to purchase 29,650,000 common shares of TG, at an aggregate subscription price of $1,482,500, representing a per share sale price of $0.05. The TVI Subscription Agreement also provides for the purchase by TVI of a $1,317,500 principal amount convertible promissory note of TG (the "Note"). The TVI Subscription Agreement contemplates that the principal amount of the Note (and accrued interest) may be converted into TG common shares, at a conversion price of $0.05 per share, in certain circumstances, including: (i) the TG Board of Directors having resolved to accept an acquisition proposal from a third party that constitutes a "superior proposal" for purposes of the Arrangement Agreement; (ii) if, after conversion, the number of TG common shares held by TVI would be less than 19.5% of the total number of issued and outstanding TG common shares; (iii) if the conversion is approved by the TG shareholders; (iv) if the TG common shares are delisted from the TSX Venture Exchange; (v) if the TSX Venture Exchange provides its consent to conversion; or (vi) at any time following December 31, 2015. After giving effect to the purchase of TG common shares pursuant to the TVI Subscription Agreement, TVI will own approximately 19.5% of the total number of issued and outstanding TG common shares (not including TG common shares that may be issued upon the conversion of indebtedness owing under the Note or the 12 million TG common shares proposed to be issued to LIM Asia Special Situations Master Fund Limited in connection with the private placement transactions described below).
The TVI Subscription Agreement provides that the net proceeds from the sale of TG common shares and the Note will be used by TG to pay amounts owing, or that may become owing, in respect of the oil and gas assets of certain TG subsidiaries in the Philippines and Alaska and (to the extent of any balance) for other corporate purposes.
TVI intends to vote the 29,650,000 TG common shares referred to above in favour of the Arrangement at the special meeting of the TG shareholders, optionholders and warrantholders that is to be called and held to consider and vote upon the Arrangement (the "Meeting").
In addition, TG has entered into a subscription agreement with LIM Asia Special Situations Master Fund Limited (the "LIM Subscription Agreement"), under which LIM has agreed to purchase 12 million TG common shares, at an aggregate subscription price of $600,000, representing a per share sale price of $0.05.
The private placement transactions contemplated by the TVI Subscription Agreement and the LIM Subscription Agreement are expected to close promptly following receipt of all required regulatory approvals.
TG Board Recommendation
Negotiations concerning the Transaction were conducted on behalf of TVI by a special independent committee of the TVI Board of Directors consisting of Messrs. C. Brian Cramm and Jan Horejsi and on behalf of TG by a special independent committee of the TG Board of Directors consisting of Messrs. Wayne Thomson, Gordon Hoy, David Moscovitz and Michael Ames.
The TG Board of Directors, on the unanimous recommendation of its independent special committee, has determined that the Transaction is in the best interests of TG and the TG shareholders and has resolved to recommend that TG shareholders vote in favour of the Arrangement. Management and the directors of TG and certain other shareholders, who beneficially own or exercise control or direction over approximately 4.01% of the issued and outstanding TG common shares, and options entitling them to purchase up to an aggregate of approximately 3,950,000 TG common shares, have entered into support agreements with TVI under which such persons have agreed to vote their TG common shares in favour of the Arrangement. Two additional shareholders of the Corporation, who currently own (in the aggregate) approximately 31.39% of the outstanding TG common shares have advised TVI of their support for the Transaction and have indicated that they plan to vote their TG common shares, and any TG common share purchase warrants held by them, in favour of the Arrangement at the Meeting.
The Arrangement Agreement prohibits TG from soliciting or initiating any discussions concerning the sale of material assets or any other business combination involving TG and provides TVI with the right to match any competing proposal that TG receives from a third party. Under the terms of the Arrangement Agreement, TVI is entitled to receive a $500,000 termination fee from TG in certain circumstances. Additional details relating to the Arrangement Agreement will be included in the information circular to be delivered to TG shareholders, optionholders and warrantholders in connection with the Meeting. Copies of the Arrangement Agreement and certain other documents will be filed with the applicable Canadian securities regulatory authorities and will be available at Welcome to the SEDAR Web Site / Bienvenue au Site Web SEDAR.
TG'S Financial Advisor And Fairness Opinion
Jennings Capital Inc. acted as financial advisor to TG and has provided a verbal opinion to the TG Board of Directors that, as of December 21, 2010 and subject to the assumptions and limitations contained therein, the Transaction is fair, from a financial point of view, to TG shareholders. MacLeod Dixon LLP acted as legal counsel to the Special Committee of the TG Board of Directors and Borden Ladner Gervais LLP acted as legal counsel to the Special Committee of the TVI Board of Directors.
Closing of the Transaction and the Private Placements
Completion of the Transaction is subject to the receipt of all necessary securityholder, court and regulatory approvals (including the approval of the Toronto Stock Exchange and the TSX Venture Exchange) and the satisfaction or waiver of certain other conditions. The resolution respecting the Arrangement will require the approval of not less than 66 2/3% of the votes cast by TG shareholders, optionholders and warrantholders (voting together as a single class) at the Meeting. The Meeting is expected to be held in late February 2011. An information circular relating to the Meeting is expected to be mailed to TG shareholders, optionholders and warrantholders in January 2011 and the Transaction is expected to close by early March 2011.
Completion of the private placement transactions contemplated by the TVI Subscription Agreement and the LIM Subscription Agreement is subject to the receipt of all necessary regulatory approvals (including the approval of the TSX Venture Exchange). All securities issued pursuant to the TVI Subscription Agreement and the LIM Subscription Agreement will be subject to hold periods imposed under applicable Canadian securities laws and stock exchange rules.
About TG World Energy Corp. (TSX VENTURE: TGE)
TG World is a Calgary-based, junior international oil and gas company with exploration, development and production operations in the Philippines, Alaska and Niger.
TG World (BVI) Corp. (a wholly-owned subsidiary of TG World) is partnered with operator Nido Petroleum Ltd., Kairiki Energy Ltd. and Trafigura Ventures III BV in a joint venture for Service Contract 54A in the North West Palawan Basin of the Philippines.
TG World Energy Inc. (a wholly-owned subsidiary of TG World) is partnered with operator Brooks Range Petroleum Corp., Alaska Venture Capital Group, Brooks Range Development Corp. and Ramshorn Investments Inc. in a joint venture that is pursuing oil and gas opportunities on the Central North Slope of Alaska.
TG World Petroleum Ltd. (a wholly-owned subsidiary of TG World) is partnered with operator CNPCIT, a unit of the China National Petroleum Company, in the Tenere Block oil and gas concession in the Republic of Niger, Africa.
About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)
TVI Pacific Inc. is a publicly-traded copper producer focused on the production, development, exploration and acquisition of precious and base metal mining deposits in the Philippines. The Company's interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.), Inc.
READER ADVISORY - FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking information (referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "intend", "estimate", "expect", "may", "will", "should", or similar words suggesting future activities, circumstances or outcomes. In particular, this news release contains forward-looking statements relating to: (1) TVI's proposed acquisition of TG; (2) Transaction values and the anticipated benefits of the Transaction; (3) the anticipated outstanding share capital of TVI following the completion of the Transaction and ownership levels; (4) the closing of the Private Placement transactions contemplated by the TVI Subscription Agreement and the LIM Subscription Agreement; (5) the anticipated use of proceeds of the Private Placement transaction contemplated by the TVI Subscription Agreement; (6) the timing of certain milestones associated with the Transaction (including the timing of mailing of the information circular for the Meeting, the timing of the Meeting and the anticipated timeframe for closing of the Transaction); and (7) the receipt of all necessary securityholder, court and regulatory approvals in connection with the Transaction, including the satisfaction or waiver of certain conditions to the Arrangement and the Private Placement transactions contemplated by the TVI Subscription Agreement and the LIM Subscription Agreement.
Forward-looking statements are based upon the opinions and expectations of management of TVI as at the effective date of such statements and, in some cases, information supplied by third parties. Although TVI believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as completion risks in respect of the Arrangement, changes in general economic conditions in Canada, the United States and elsewhere, changes in operating conditions (including as a result of weather patterns), the volatility of prices for oil, gas, base metals, precious metals and other commodities, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration, development and production of oil and gas (including mechanical and environmental problems), inherent risks associated with the exploration, development and production of base and precious minerals (including mechanical and environmental problems), timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, availability of equipment, materials, services and personnel, defaults by counterparties, reliance upon operators in the case of non-operated properties and projects, and new laws and regulations (domestic and foreign). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.
Forward-looking statements concerning the proposed acquisition of TG by TVI are based upon the terms of the Arrangement Agreement. Forward-looking statements concerning Transaction values and the anticipated benefits of the Transaction are based upon the terms of the Arrangement Agreement, the current trading prices of the TVI common shares and TG common shares, and the nature and extent of the current operations of TVI and TG in the Philippines in particular. Forward-looking statements concerning the anticipated outstanding share capital of TVI following the completion of the Transaction and ownership levels is based upon the existing outstanding share capital of TVI, the existing outstanding share capital of TG, the terms of the Arrangement Agreement, the terms of the TVI Subscription Agreement and the terms of the LIM Subscription Agreement. Forward-looking statements concerning the closing of the Private Placement transactions contemplated by the TVI Subscription Agreement and the LIM Subscription Agreement are based upon the terms of the TVI Subscription Agreement and the LIM Subscription Agreement, respectively, and advice from counsel with respect to the anticipated timing of receipt of regulatory approvals. Forward-looking statements concerning the anticipated use of proceeds of the Private Placement transaction contemplated by the TVI Subscription Agreement are based upon the terms of the TVI Subscription Agreement. Forward-looking statements concerning the timing of certain milestones associated with the Transaction (including the timing of mailing of the information circular for the Meeting, the timing of the Meeting and the anticipated timeframe for closing of the Transaction) are based upon the terms of the Arrangement Agreement and advice received from legal counsel and other advisors to TVI and TG as to the time required to complete certain tasks associated with the preparation and mailing of the foregoing information circular and the holding of the Meeting. Forward-looking statements concerning the receipt of all necessary shareholder, court and regulatory approvals in connection with the Transaction, including the satisfaction or waiver of certain conditions to the Arrangement and the Private Placement are based upon the terms of the Arrangement Agreement.
The forward-looking statements contained in this news release are made as of the date hereof and TVI does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable Canadian securities laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
TVI Pacific Inc.
Rhonda Bennetto
Executive Director Investor Communications
403.265.4356
rhonda.bennetto@tvipacific.com
TVI Pacific Inc.
Ian McColl
Investor Relations Analyst
403.265.4356
ian.mccoll@tvipacific.com
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Source: TVI PACIFIC INC.
http://www.tvipacific.com/Investors/news/News-Release-Details/2010/TVI-Pacific-Inc-and-TG-World-Energy-Corp-Announce-Arrangement-Agreement-for-the-Acquisition-of-TG-World-Energy-Corp-by-TVI-Pa/default.aspx
Keeping an eye on DOG.V right now.
small company with producing wells seems like responsible management so far ,,,,
I think around 20 million shares out .
located is Alberta/Saskatchawan Canada.
,,,nothing mind blowing here as far as numbers just steady progress and growth.
they have some activity going on right now
In my mind worth being on "watch"
trading between .31 to .34 cents cdn.
elmacanuck
Blackdog Resources Ltd. Announces Q3 2010 Financial Results and Increases Year Over Year Quarterly Revenue by 425%BLACKDOG RESOURCES LTD DOG 11/30/2010 8:00:13 AMCALGARY, ALBERTA, Nov 30, 2010 (Marketwire via COMTEX News Network) --
Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to provide a review of its financial and operating results for the third quarter ended September 30, 2010. The unaudited financial statements and related management's discussion and analysis have been filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com.
Q3 Highlights-- Increased quarterly revenue to $915,386 (Q3 2009-$174,872) which was an increase of 423%.-- Increased average daily production to 137 boepd (Q3, 2009-32 boepd) which was an increase of 328%. This production is 98% light oil weighted.-- Increased quarterly operating netback to $239,959 (Q3, 2009-$89,669) which was an increase of 160%.-- Increased funds flow from operations to $104,833 (Q3, 2009-$11,450) which was an increase of 816%The third quarter of 2010 was a period of unparalleled growth for the Company since its inception. The Company posted record revenue of $915,386 (Q3, 2009-$174,872). This was an increase of 423% from Q3, 2009. Daily production increased to an average of 137 boepd (Q3, 2009- 32 boepd) with a 98% weighting to light oil. This reflected a 328% daily increase in production. Funds flow from operations increased to $104,833 (Q3, 2009-$11,450) which reflected an 816% increase. The Company managed this growth while maintaining tight general and administrative costs of $135,126 for the quarter (Q3, 2009-$78,219) which was only 73% higher than in Q3, 2009. Included in these numbers are royalty costs of $237,945 for the quarter (Q3, 2009- $14,990). This is an increase of 1487% from Q3, 2009. These figures do not take into account the approximate net $60,000 rebate for the quarter that the Company expects to receive from the Government of Alberta under the Drilling Royalty Credit program. During the quarter, the Company was also forced to shut in wells on several occasions because of extremely wet weather, which negatively impacted the Company's revenue, daily production and cash flow from operations for the quarter.
The Company focused on 3 distinct areas during the quarter. The first of these was to integrate a new producing property into the Company's domain of assets. In July 2010, the Company acquired interests in 3 light oil wells in Girouxville, Alberta (the "Acquisition") for $710,000 cash and 100,000 Blackdog common shares. These wells produce on average between 75-80 bbls/d of light oil net to the Company and have provided a boost to the Company's cash flow and production rates. While these wells have high royalty rates associated with them, they still yield excellent monthly net operating income. The monthly royalties on these wells in Q3 2010 averaged over $65,000. Subsequent to closing the Acquisition, the Company entered into an agreement with another Alberta-based oil and gas company in November 2010 to acquire $800,000 Drilling Royalty Credits which are part of the revised Alberta Royalty Incentive Drilling Program, which will allow the Company to receive a net deduction of 25% of the royalties on the majority of its Alberta wells, including the Girouxville wells, until March 31, 2012, retroactive to April 1, 2010. Blackdog incurred no capital costs to acquire these credits. The Acquisition also included a seismically defined potential high impact Granite Wash drilling target on the lands. The Company has a 55% working interest in this prospect.
The Company's second focus for the quarter was at its core area at Woking, Alberta, approximately 80 km northeast of Grande Prairie. During the quarter, the Company continued its dual focus of evaluating and understanding the technical intricacies of the Halfway oil zone and continued our focus to lower our ongoing operating costs for our four producing oil wells and the Enhanced Oil Recovery/Salt Water Disposal System (EOR/SWD). Progress in both areas of focus has been excellent. Because of exceptionally wet weather at Woking during the quarter, the Company would not have been able to move rig equipment onto the lease without causing long term damage to roads and infrastructure. Therefore, the Company took the time to engage veteran and experienced consultants to provide the Company with additional expertise and direction on its development strategy. Subsequent to the quarter and under colder weather conditions, the Company has commenced its winter work-over strategy. A rig arrived on site on November 25, 2010 and the Company intends to re-complete two wells with two very different strategies over the next couple of weeks. Based on the results of these two work-overs, the Company may re-enter several more wells during the winter of 2010-2011. In terms of cost control, the Company has installed chemical pumps on all of its wells and intends to install fire tube heating tanks on all of its tanks by year end. The combination of these two capital purchases has allowed the Company to now break over 95% of the water out of the oil emulsion it produces. This allows for less emulsion to be trucked off the lease, resulting in lower trucking and processing costs and better use of the EOR/SWD. Also, subsequent to quarter end, the Company renegotiated its trucking contracts and has lowered its trucking costs by approximately 50%. The Company intends to further drop its operating costs at Woking in 2011 when the Company expects to have a power line and transformer (the latter to be installed in January 2011 at no cost to the Company) installed at its EOR/SWD location to eliminate its rental generator and other rented equipment. During the quarter, the Company produced oil from 4 wells at Woking. Monthly production increased throughout the quarter and with the actions the Company has taken to reduce operating costs, the Company is pleased with its progress at Woking and the cash flow the property is generating. The Company has not deviated from its initial projections at Woking and still intends to bring on 12-15 wells at Woking over time.
The third area of focus during the Quarter was to understand the current value of the Company's other assets and decide how to maximize the value of these assets. The Company's land at Evi, Alberta is in the middle of one of the most active light oil resource plays in the province of Alberta and the Company has the rights to both the Granite Wash and the Slave Point on its land. The most active formation is the Slave Point, where several companies are drilling lucrative horizontal wells that are relatively inexpensive to drill and have strong initial production rates and steady long term production profiles. These low risk wells benefit from the new Alberta Royalty Rate of 5% for the first year of production and have excellent roads and pipeline infrastructure available. Also, very recently, the Company has reviewed public information from other companies drilling in Evi, which have drilled very good Granite Wash wells that have swabbed at rates between 300-400 bbls/d. The Company has received several cash offers for its land and has decided it will conduct its own technical analysis and pending technical merit, possibly drill its own Slave Point horizontal wells in 2011. The Company already believes it has a seismically defined vertical Granite Wash target at Evi.
At Pembina, the Company has an average 15% working interest in 5 sections of land and has watched with great interest the Cardium Light Oil Resource play where horizontal Cardium wells have been drilled in and around its various landholdings over the last 18 months. Horizontal Cardium wells are very expensive and some wells have produced much better than others, so having the benefit of monitoring and evaluating other industry operations in this play has provided the Company with important information regarding the most effective multi stage fracture stimulation techniques on these wells, which have been improving quarter by quarter. The Company has been verbally advised by one of its partners that they had planned to drill a Cardium horizontal well on our own joint lands at the end of Q3 or in early Q4, 2010. This well has now been delayed until Q1, 2011. The Company believes drilling later rather than sooner is in the best interests of the Company and therefore is pleased with that decision.
In addition, during Q3, 2010, the Company renegotiated its credit facility with its bank. The Company's operating line has been increased from $800,000 to $2,000,000 with its interest rate reduced by 0.5%. During Q2, 2010, the Company fulfilled all its 2009 Flow Through Expenditure commitments.
About Blackdog
Blackdog is a junior oil and gas company focused on light oil development in Alberta and South East Saskatchewan. Blackdog currently has 21,268,267 shares outstanding.
Certain information regarding Blackdog in this news release, including management's assessment of future plans and operations and expected results from operations, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, production, marketing and transportation, loss of markets, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Although Blackdog believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Blackdog can give no assurance that they will prove to be correct. Additional information on these and other factors that could affect Blackdog's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and Blackdog does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The term "barrels of oil equivalent" or "boe" may be misleading, particularly if used in isolation. A "boe" conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE: Blackdog Resources Ltd.
Blackdog Resources Ltd. David A. Corcoran President (403) 245-1726 davidcor@telus.net www.blackdogresources.com
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Common Abbreviations
bbl. = barrel
b/d = barrels per day
Mcf = thousand cubic feet
MMcf = million cubic feet
Bcf = billion cubic feet
Tcf = trillion cubic feet
BTU = British Thermal Unit
NGL = Natural Gas Liquids
LPG = Liquified Petroleum Gases
Energy Conversions
One barrel of crude oil equals:
42 gallons
5,800,000 BTU of energy
5,614 cubic feet of natural gas
0.22 ton of bituminous coal
One cubic foot of natural gas equals:
7.48 gallons
1,030 BTU of energy
0.000178 barrel of crude oil
0.00004 ton of bituminous coal
One short ton of bituminous coal equals:
2,000 pounds
26,200,000 BTU of energy
4.52 barrels of crude oil
25,314 cubic feet of natural gas
One metric ton of crude oil equals:
2,204 pounds
7.46 barrels of domestic crude oil
6.99 barrels of foreign crude oil
One cubic meter of natural gas equals:
35.314 cubic feet
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