New Western Energy Corp. (fka NWTR)

[Alao]

This has had coverage from Ian Gilson of Zacks Small Caps Research. Here are some things that I pulled out from it.

52-Week High $0.31
52-Week Low $0.07
One-Year Return (%) -56.7
Beta -0.4
Average Daily Volume (sh) 84,031

Current Recommendation Outperform
Prior Recommendation N/A
Date of Last Change 12/10/12
Current Price (08/20/14) $0.08
Six- Month Target Price $0.75


INDUSTRY POSITION
There is a large number of small oil and gas companies in an industry dominated by very large
multinationals. Most of the very small companies are not profitable at this time The industry is highly
competitive at all levels as well as competing with other sources of energy such as coal and synthetic
fuels. No single company is able to control its selling prices, which are set by the international markets in
conjunction with OPEC. The oil and gas industry is subject to changes in regulation and legislation that
may not be favorable to small companies

VALUATION
A method of valuing oil and gas companies is the ratio of market capitalization to proven reserves.
Although this does not include a value for the undeveloped properties the equity markets do include such
a value and the reserve values would be under stated. With an estimated reserve base at less than $0.50
per bbl NWTR is undervalued.

RISKS
If the history of losses, continues it will have negative impacts on the company's ability to achieve its
business objectives. The company will need additional funding to expand its drilling program. Without
such additional capital New Western Energy will not be able to meet its objectives on sustainable
positive net free cash flow.
The company has no control over the price of crude oil and a decline in that price would impact its
ability to raise capital.
Exploration, drilling and producing oil and natural gas are high risk operations and actual production
may differ significantly from estimates and forecasts.


INSIDER TRADING AND OWNERSHIP

AS of December 31, 2013
Javan Khazali, director and CEO, owns 39,600,000 shares.
Haris Baha, Executive VP, owns 1,400,000 shares.
Terry L. Carroll, director, owns 600,000 shares.
Amir Eskarous, director, owns 50,000 shares.
Officers and directors own 57.6% of the shares outstanding.