Value Microcaps Motherboard

[Bobwins]

EGY making a steady comeback. EGY is very undervalued. They are a foreign driller with one field offshore of Gabon in W Africa. They hit 100% of their wells last year. They are working towards developing two small fields in the next two years. They could triple production by 2007. Very good mgmt.

Now $5. Earned .16diluted in q3. Production gains should overcome higher royalties to Gabon. Company has warned that they have recovered all previous drilling costs partway thru q4 and that the revised cost formula would cost the company about .04eps for q4. Combo of increased production for full qtr plus higher oil prices in q4 should offset. Company could earn .60 to .80 next year.

Company is financing 2005 drilling budget from operating cashflow and $20 million cash on hand.

Bobwins