Fowler Oil and Gas (fka FWOG)

[humboldt111502]

Fundamental Analysis of Fowler's Alaska Operations...

Fowler didn't wanna give out any numbers, so I just used some math and came up with my own, based on his own geological reports and royalty estimates.


DRILLING UNIT PARAMETERS
MATANUSKA VALLEY
Kircher Unit

Land & Ownership

Acreage
840 acres

Location
Township 18 North Range 1 East
Level farmland and forests
Close to Enstar gas lines

Owners
Henry Kircher Leased
Havemeister Family Leased
Riley Family Leased
Ashmore Family Leased

Gas Reserve

Amount of Coal
600’ of net coal at 3000’
25+ seams of 4’ to 30’ in thickness

Gas Content per Ton
422 cu ft per ton

Gas in Place
382 billion cu ft

Recovery 85-90%

Well Life
50 years

Drilling Program

Drilling Pattern
1 vertical to 3500’
4 laterals in same seam at 2500’ each
No gas extraction from 0-1,000’
Later on, additional lateral patterns in each seam will be added

Completion
Downhole water reinjection thus no water to surface
Low pressure surface pump with small footprint
Computer monitoring
Buried pipeline to Enstar grid

Permits
State AOGCC Permit (check status: http://www.state.ak.us/local/akpages/ADMIN/ogc/drilling/dindex.shtml )
Matsu Borough Permit (approved oct. 2, 2007)

Estimated Royalty

We are offering the landowner a 20% royalty based on the gross revenue received at the wellhead with no offsets for any costs or taxes. The surface owner is offered 7 ½ % and the mineral rights owner 12 ½ %. Or the full 20% if they are one and same owner.

Based upon our Geology Report, the estimated royalty payment would be
• Min of $1,000 per acre per year for 50 years
• Max of $6,000 per acre per year for 50 years

We encourage our mineral rights owners to focus on the $1,000 per acre per year and then be pleasantly surprised if we exceed this amount.

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based on 840 acres and $1-6k per acre, that would be
between $840,000 and $5,040,000, or average of $2,940,000 in royalty costs per year.

remember that he stated a royalty of 20%, that would leave the other 80% for Fowler to cover costs/taxes/permits...

the estimated annual revenue from this project would be bewtween $4,200,000 - $25,200,000, or an average of $14,711,111

now add back on the $890,000 reported from manta.com =

rough total estimate of total annual revenue in Alaska:

$15,601,111

estimate of annual liabilities = $2,940,000


the only info I could get as far as share structure was when I called De and it said 100,000,000 shares authorized for their number.

if you assume the O/S is also 100 mil, then that would be a
rough approx book value (shareholder's equity) of...

$ 0.126 per share

total shareholder equity: $12,600,000


estimated return on equity:

$15,601,111 / $12,600,000
1.238 = 123.8%





this is only a rough estimate and does not inlclude tax, permit costs, or drilling costs, and does not incorporate any assets the company may currently own. There might also be more liabilities we don't know of. Just thought it would be a fun project.