Oil Plays (fka Oil-Gas)

[BMiles]

MKGP Due Diligence #1 -

Description of Business
Maverick Energy Group, Ltd is the operator of the “Big Foot Field” in West Texas originally developed by Royal Dutch Shell (RDS-A) and recently valued at approximately $19 million. It has approximately 300 wells in the field of which approximately 240 are presently revenue producing. According to Z2's most recent engineering report with an effective date of January 1st, 2006, the total future net revenue from the Big Foot producing properties is in excess of $38,000,000 and the future net revenue from the 200 Proved Undeveloped Properties (PUDs) yet to be drilled is in excess of $353,000,000.

Maverick owns an 11.517% membership interest in Z2, the owner of the Big Foot Field, and currently holds an option to acquire an additional 13.184% membership interest in Z2. If it were to exercise this option, Maverick’s membership interest in Z2 would increase to approximately 24.7%. Maverick’s option exercise price is $1,000,000 and may be exercised at any time through July 17th, 2007. The President of Maverick also serves as the Chief Financial Officer of Z2, LLC. Maverick is also the proprietary owner and operator of several producing natural gas fields and owns approximately 50 additional natural gas leases in West Virginia.

Must Read Alert with 35 Cent Short Term and $1.25 Long Term Targets:
January 16, 2007
The total revenue picture could be quite lucrative for Maverick, promising total revenue of over $90,000,000 with their exercised option in Z2 and provided the undeveloped properties are eventually revenue-producing. Given its current capitalization of just over $5M, Maverick appears to be trading at a heavy discount to a company that could potentially have revenues per share of nearly twenty times its current market price. With current net earnings about 16% of revenues, Maverick could conceivably be earning $14.4M dollars, or about $.11 per share, within the next few years. (Click the link below for the full article)
http://www.microcap-reports.com/Reports.php?IDstock=1

Upcoming Company Projected Events:
1. PR'd Feb 6th, 2007 - "The initial drilling phase of the well began on January 30th and is expected to be completed this week."
http://biz.yahoo.com/iw/070206/0211974.html

2. PR'd Feb 6thth, 2007 - "Of the first two wells drilled, one is completed and in the testing stage and the second well was fractured yesterday and will be placed on line and tested over the next two weeks. It is expected that both wells will produce oil and gas in commercial quantities. Initial flow rates on the first well should be available by the middle of February."
http://biz.yahoo.com/iw/070206/0211974.html

3. PR'd Feb 1st, 2007 - "It is projected that gas will begin being sold within the next 30 to 60 days."
http://biz.yahoo.com/iw/070201/0209995.html

Recent Items of Interest:
September 25, 2006
According to Z2's most recent engineering report, the estimated future net revenue from the producing properties may be in excess of $38,000,000 and the estimated future net revenue from the Proven Undeveloped Properties (PUDS) yet to be drilled could be in excess of $353,000,000. Z2 announced the closing of a $40,000,000 Advancing Credit Facility with Gasrock, LLC of Houston, Texas on August 25th, 2006. This financing will permit Z2 to further exploit its Big Foot Field holdings in Texas. The financing will be utilized to rework producing wells which are currently not producing and to begin a drilling program on a portion of the 200 proven undeveloped locations contained in Z2's engineering report dated January 1st, 2006.
http://tinyurl.com/vqt2x

October12, 2006
Maverick Energy Group, a member of Z2, LLC, is pleased to announce the commencement of a 22-well workover program for Z2. The 22 workovers, as well as the drilling of 6 PUDs are part of the initial operations planned by Z2 with funding from the $40,000,000 Advancing Credit Facility which Z2 closed with Gasrock Capital, LLC the latter part of August, 2006. The first three workovers were completed and the preliminary results indicate an increase of 4 barrels per day per well. If all 22 workovers produce at the expected increase in barrels per day, the overall production in the field could increase by in excess of 20%.
http://biz.yahoo.com/iw/061012/0172025.html

January 12, 2007
Maverick, announces the successful drilling of two new Olmos "D" wells in its Big Foot Field in Frio County, Texas. Logs indicate in excess of twenty feet of pay in each of the two wells. Maverick anticipates that both of the above mentioned wells will be completed and in production by the end of January. Maverick also should begin the drilling of the third Z2 well by the end of January.
http://biz.yahoo.com/iw/070112/0202656.html

For The Skeptic
Maverick Operates The Big Foot Field
Scroll down to the Big Foot Field to find Maverick as the operator of 303 listed wells.
http://tinyurl.com/ymrkoq

Z2 LLC Does Exist
http://tinyurl.com/y9shgh

Z2 $40 Million Finance Verification
http://www.gasrockcapital.com/portfolio.htm

Another Z2 Owner
http://biz.yahoo.com/pz/060503/98417.html

Current Share Count Information:
Authorized Shares............................... 500,000,000 as of 2006/06/30
Issued and Outstanding........................127,914,189 (Confirmed with T/A 1/04/2007)
Restricted Shares.................................96,585,543 (Confirmed with T/A 1/04/2007)
Float................................................... 31,328,646 (Confirmed with T/A 1/04/2007)

Insider Holdings as of 8/31/2006
CEO - James McCabe..............................44,211,243
President - Richard Bednar.......................12,344,400
Business & Financial Consultants.............15,438,039 (Richard Bednar is Managing Director)
CFO Brice Bogle.......................................7,125,000
I/R Christiane Lopez.....................................600,000
http://tinyurl.com/yzkaqd

For the period ending September 30th 2006
1. Maverick saw an increase in Revenue of 25.6% from the previous Quarter.
2. Maverick saw an increase in Net Profit of 36.2% from the previous Quarter.
3. Maverick reduced Total Liabilities by 16.1% from the previous Quarter.
4. Maverick increased Stockholder Equity by 60.2% from the previous Quarter.

Financial Data From Quarter Ending June 30th 2006
Total Assets...........................$2,379,616
Total Liabilities........................$2,016,276
Stockholder Equity.....................$363,340
Total Revenue............................$934,589
Net Income................................$147,387
http://www.pinksheets.com/quote/finance.jsp?symbol=MKGP

Financial Data From Quarter Ending September 30th 2006
Total Assets...........................$2,276,952
Total Liabilities........................$1,691,760
Stockholder Equity.....................$582,192
Total Revenue............................$1,173,936
Net Income................................$200,752
http://www.pinksheets.com/quote/finance.jsp?symbol=MKGP

Contact Information:
Maverick Energy Group, Ltd
1350 South Boulder, Ste. 301
Tulsa, Oklahoma 74119
Phone: [phone]

Maverick Energy Group, Ltd
1100 NW Loop 410, Suite 506
San Antonio, Texas 78230
Phone: [phone]

Maverick Energy Group, Ltd
1415 Panther Lane, Suite 327
Naples, Florida 34106
Phone: [phone]

Christiane Lopez
Vice President of Investor Relations
[e-mail]

Website
http://www.maverickenergygroup.com

News Archive
http://www.maverickenergygroup.com/mkgp.html

Interview with CEO James McCabe 6/20/2006
http://www.mn1.com/members/modules.php?name=Downloads&d_op=getit&lid=54

Management Team Biography
http://www.maverickenergygroup.com/AboutUs.htm