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Here is a repost of Jaybirds post on TIV which has a couple inaccuracies but sums up whats happening rather nicely. Also below is a copy of part of Fridays PR which clarifies the current status of production.
Posted by: jaybird249 Date: Tuesday, June 17, 2008 11:58:51 AM
In reply to: None Post # of 3368
TIV: AMEX is the most undervalued Oil play be EVERY metric.
1) Being added to Russell Index Friday. HUGE institutional buying coming.
2) HUGE insider buys.
3) NOW PROFITABLE WITH OVER 3,000 BOE Daily production. The company shows a profit somewhere between 1,500 and 2,000 BOE/day, and around $1/share earnings at around 7,000 BOE, which can be reached within a few months.
4) TIV is a LAGGARD in hottest sector, oil and gas. MOMENTUM players have sent up stocks like PDO and MXC from single digits to $20 ++ TIV is next IMO.
5) TIV is selling at a HUGE discount to comparable stocks in terms of Price/Sales and cash flow.
6) TIV is the FASTEST GROWING LOW COST OIL PRODUCER IN NORTH AMERICA.
7) In 2005 during the last sector boom, TIV ran from $4 to $16 when it was still basically an EXPLORATION company. NOW TIV IS A SENIOR PROUDUCER WITH A CURRENT REVENUE RUN RATE OF $100 MM PER YEAR.
8) Small 20 MM float.
9) 2 MM shares Short at last report.
10) Compare TIV market cap to Canadian Heavy oil/Bitumen plays like BQI. BQI has a $1.1 BILLION market cap and has NO production. If TIV had a $1.1 Billion market cap it would be a $40 stock.
SUMMARY OF TIV PRODUCTION RESULTS
1. Production went from 70 BOE/day to "in excess of" 1,500 BOE since first new discoveries of oil (13 December 07) and natural gas (10 January 08)
2. Greater than 500 BOE/day as of 25 March 08
3. Greater than 1,000 BOE/day as of 8 May 08
4. Greater than 1,500 BOE/day as of 19 May 08
5. Price of Oil at $132/barrel
6. Price of Natural Gas at $11.98/Mcf
7. Now 4 new wells now being prepared to go on line, adding to the current 4, so 2 times 1,500 = 3,000 BOE, as more wells are being drilled.
8. Twenty old wells being re-stimulated, for production, based on the wildly escalating price of oil and gas.
And get out your calculator: The company shows a profit somewhere between 1,500 and 2,000 BOE/day, and around $1/share earnings at around 7,000 BOE, which can be reached within a few months.
From PR
Tri-Valley Corporation (AMEX:TIV) has exceeded 2,000 barrels of
oil equivalent per day (BOED) rate with total field production
recorded at 2,058.3 BOED from its 43 active producing wells on six
California properties. This surpasses the original year end 2008
Company Plan of 2,000 BOED by more than six months.
"With tested productive capacity of individual wells now totaling over 3,500 BOED supporting our facilities expansion and installation planning, and many of the wells choked back during initial productive life for prudent early field development, we are now confident that we can achieve 3,000 BOED by year end, eclipsing our original Company Plan goal by 50%. Should additional drilling permits be obtained on a timely basis, and targeted lease acquisitions and subsequent
developments proceed on schedule as expected, we believe we are on track to become a 10,000 BOED enterprise by the end of this decade,"said Robert Bell, vice president of operations for the operating subsidiary, Tri-Valley Oil & Gas Co.
AI
