Value Microcaps Motherboard

[Bobwins]

wade, TGA is unlikely to make .60 for several reasons. First, that is an unreasonable increase from 2004 actual.

Second, their output is unlikely to change until they complete the pipeline in Yemen. Not scheduled to be done until 6/05. So they really only have 6 months to make increase eps. Any production that is "behind the pipe" will be unlocked in June or July BUT they will lose the 6 months of income they would have gotten from the wells that are completed but underproducing or not producing at all.

You ask if they can hit $1 by 2006. Yes, they have lots of potential because they have multiple prospects of high quality. Will they hit it?? Don't know because they have to hit exploratory wells to do it AND price of oil has to be higher than current prices. The pipeline can handle 80,000bpd max of which 1/4 would go to TGA. So 20,000 bpd for TGA is possible if they can find a lot more oil. That compares to their exit rate of 5500bpd for 12/04. They need to increase the Central Processing Facility but most of all, hit some big wells or proceed with commercial development of Harmel.

Long term, TGA has many prospects. They have the rest of S-1 to explore, Section 72 in Yemen, which is bigger than S-1 and then a massive amount of land in Egypt. TGA is patient so they won't rush things. They will do things the right way, to get the biggest bang for the buck. Will they max income for 2006? Probably not. They will do their DD and proceed in the most efficient way to explore their prospects. Probably won't go into debt in a major way to do it. There is a chance of a bigger partner in Egypt because the land mass is so large, they won't have the time or money to carefully explore all of it.

There are too many variables to predict eps for an oil company two years out. They do have excellent potential to keep growing because of their proven management expertise and the land concessions that they already have in hand. I believe they will continue to grow faster than most of their peers. I think they will continue to get a premium p/e due to their demonstrated performance and potential. Bobwins