Oil and Gas Plays

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pink - ODEFF/ tsx - ODE $.045 increasing production from current 350 barrels per day to between 600 and 1000..

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Odyssey Petroleum Corp. Set to Readily Increase Near Term Oil Production and Complete 3D Imaging of First Targets to Produce Large Deep Reserves

(TSX-V: ODE) (Frankfurt: YQN) (US Listing: ODEFF.PK) represents exceptional value and is poised for significant upside revaluation

Odyssey Petroleum Corp.

Odyssey implements two-phased plan;

1) Rapidly and readily increasing production (from current ~350 barrels per day to between 600 and 1000) within a few months through low risk development of known oil and gas deposits to increase cash flow.

Odyssey has 15 cased hole reentry projects on the drawing board where oil is known to exist in quantity in untapped layered zones at various levels (up to 25 per hole). These are expected to quickly increase production by more than 600 barrels of oil per day. Energy MarketWatch has confirmed each work-over costs less than USD$200K all-in (including pumping units) and should generate 50 - 100+ barrels a day each.

2) Facilitate a move to drill deep and realize the large reserves Odyssey possesses at depth.

ODE.V possesses large reserves at depth with proven and probable reserves of approximately 50,000,000 (BOE). Seismic surveys, geological mapping, and actual drilling indicate 40 to 50 million barrels of oil in deep formations at their majority owned Pelahatchie field. Odyssey has yet to tap this known ocean of oil and is setting up to take the company to major production; 3D seismic imaging of targets should be completed by the end of Q1 2010 and will set ODE.V up to drill and produce multiple wells drilled to ~17,000ft. Each deep well will cost ~USD$5M to drill yet is expected to yield 500 to 1000+ barrels of oil a day for 20+ years (4,000,000 barrels of oil and 4B cubic feet of gas is expected from each well, a significant yield at ~$1 - $2/barrel cost).
Notes from the Editor on Featured Article:



Valuation Commentary: Odyssey Petroleum Corp. (TSX-V: ODE) is now at an inflection point as an emerging oil and gas exploration and production company with significant land based reserves in the Southern United States containing multiple productive zones 7,500 ft to 17,000 ft subsurface. ODE.V possesses large reserves at depth with proven and probable reserves of 50,000,000 (BOE). Since inception in 2005 Odyssey has created a small base of production from wells at shallower depths through a highly skilled, cost effective, in-house workforce and hands-on management. Odyssey now feels they are securely in position to exploit the deeper known reserves, a move which will propel Odyssey to large production status/cash flow. 3D imaging of the first wells targeted at the ~17,000 ft zone of the reserves will be completed by the end of Q1 2010 and the results will be used to facilitate (operationally and financially) the drilling/production. Energy MarketWatch Journal has confirmed debt financing readily serviced by production is arranged to facilitate a two phased plan now underway. Phase one involves immediate action to boost production from current ~350 barrels per day to between 600 and 1000 through low risk development of work-overs -- this will occur while 3D imaging is being performed to set the stage for Phase 2 where the imaging results will have minimized risk and provide a means to drill and produce multiple wells drilled to ~17,000ft. Each deep well will cost ~USD$5M to drill yet is expected to yield 500 to 1000+ barrels of oil a day for 20+ years (4,000,000 barrels of oil and 4B cubic feet of gas from each well).



The risk-reward characteristics are highly advantageous for investors establishing a long position in ODE.V now. With less than ~188M shares outstanding (208M after closing of recent private placement announcement) and trading under CDN$0.10 ODE.V is poised for significant upside revaluation. In light of the serious and imminent nature of new capitalization of the company to accomplish its goals it is not unreasonable for shares of ODE.V on a forward discounted bases trade and gravitate significantly higher in the interim.



"With proven and probable reserves of 50M barrels, the oil is there for the taking and the 3D imaging of targets will provide the means (operationally and financially) to facilitate drilling/production of deep reserves. ODE.V shares are poised for significant upside revaluation according to accepted valuation metrics of USD$50K per flowing barrel plus stored value of reserves; the current market cap under $15M justifies a multiple upward valuation adjustment as it is now trading at less than 1% of discounted NPV reserve value and under its $20M infrastructure value. The company has made arrangements to replace what nominal debt it has so it may be serviced interest only and capitalize a two-phased plan to move towards major production of its reserves, this will lead to a shift in valuation of its reserves to 'proven, developed, and producing'."

Source: Market Equities Research Group