Maverick is the sole operator of, and owns an 11.5% interest in, the Big Foot Field, originally developed by industry giant Royal Dutch Shell and subsequently sold in the early 90s. According to company, Lee Keeling and Associates assessed the reserves of this field in January 2006. For the remaining net oil reserves of 229 developed producing wells, 1,279,917 barrels were estimated. For the remaining net oil reserves of the proven undeveloped properties yet to be drilled, 8,424,005 barrels were estimated. Based on conservative valuations, net revenue from the producing properties is expected to exceed $38,000,000 and future net revenue from the undeveloped properties could be in excess of $353,000,000.
These are pretty large figures for tiny Maverick, who has an option with Z2, LLC to acquire an additional 13.18% in the Bigfoot Field for an exercise price of $750,000. Although Maverick would have to exercise this option in a relatively short period (before January 17, 2007), it seems a fortuitous deal considering the additional 13.18% would give the company revenues from an additional 166,000 producing barrels and potential revenue from over 1M additional barrels still undeveloped in the ground.
Z2, whom Maverick is a member of, recently closed a $40,000,000 credit facility with Gasrock, LLC of Houston, Texas to further develop the Big Foot Field. These funds should greatly increase the likelihood of tapping into some of that undeveloped revenue potential, and will directly benefit Maverick as a stakeholder in the Field.
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.
With management expecting increased net earnings for the second half of 2006, it may only be a matter of time before the larger speculative community finds Maverick. In the meantime, it certainly warrants serious consideration for a microcap oil and gas company that's actually making some green.
AI
