Spindletop Oil & Gas Co. (SPND)

[OilStockReport]

I've been doing more and more research about this one. Spindletop is a great small cap with upside potential once NG prices rebound with a market cap of only $11 million. The drop in natural gas prices have caused this stock to decline to less than book value.

The company only has 22,975 net acres primarily located in Texas with additional smaller interest located in various other states. What makes Spindletop interesting are a few assets other than natural gas. First of all, the company has $1.13 per share in cash and a stock price of only $1.45. In addition, the Company owns its headquarters building just off the LBJ Freeway in Dallas, Texas. The 27 year old building sits on 1.4919 acres and has 46,286 rentable square feet and is only on the books for $1.8 million. The company occupies 10,317 and leases the remaining space to third party tenants. The company also owns 26.1 miles of natural gas pipelines in Parker, Palo Pinto, and Eastland Counties, Texas. I estimate the cash and true value of the building is worth nearly $1.45 giving you the oil and gas reserves for free.