Gulf Coast Oil & Gas (fka GCOG)

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Analyst Interview from bellwether.com

Today we had a conversation with one of our partnered analysts, David Silver, to ask his professional opinion on Gulf Coast Oil & Gas Inc. (OTCBB:GCOG).


Sector : Basic Materials

Industry : Oil & Gas Drilling & Exploration

Year End : December 31st 2008

Head Quarter : Houston, Texas

Website : http://www.gcoil.com/

Brief Description:

Gulf Coast Oil & Gas, Inc., an exploration stage company, focuses in the acquisition of oil and gas exploration projects in the United States. The company has interest in the Saratoga Prospect located in the Saratoga Chalk Formation in Sabine Parish, Louisiana. It also holds interest in the Weil 8-C Well, Weil 3-C Well, and Weil 7-C Well, which are located in Corpus Christi, Texas.

KEY EXECUTIVES
Mr. Rahim Rayani , 33
Chairman, Chief Exec. Officer, Pres, Chief Operating Officer, Chief Financial Officer, Principal Accounting Officer and Sec.

Mr. Channon C. Bourgeois ,
Technical Advisor

This conversation was conducted on May 15th 2008.

Q: What’s your take on Gulf Coast Oil & Gas Inc.?

A: Shares of Gulf Coast Oil and Gas, an exploration oil and gas company with interests in Texas and Louisiana, have seen a large percentage move over the past few weeks following the Company’s full year earnings release.

Q: Can you provide us with more information regarding this company?

A: The Company now has three producing wells in Corpus Christi, TX, and another project in Sabine Parish, LA (right on the TX border). The stock has been on a great run since the beginning of May, but with only three producing wells, and none in the pipeline, we would look for another Company in which to invest.

Q: What is your analysis of their financials?

A: Revenues surged during 2007, however, expenses did as well. During the fourth quarter, SG&A expenses 23% from the previous quarter, and despite the higher cost of a barrel of oil and the skyrocketing prices for natural gas, we would avoid this extremely speculative play.

Q: Based on this, what would you tell investors looking to position themselves in this stock?

A : There are few barriers to entry into the industry, and with oil pushing $125 per barrel, more businesses are taking the plunge into drilling. Bottom line, if you own shares, we would take a nice profit, if one is looking to invest, we would avoid this company.