TDYH: Continues to break out each day...early. I bot more yesterday. Fairly new, so very little selling in this one.
Tandem is currently realizing gross income per month from its existing operations of $800,000, with current realized monthly net cash flow equal to $600,000. Such monthly gross income will increase to $1,300,000 per month and net cash flow of $1,000,000 per month when the Shamrock assets are acquired by Tandem in the next sixty days. The Company will begin its 2005 drilling and workover program in April with the drilling and workover of 10 development wells on the Kingfisher, Oklahoma, and Montgomery, Kansas leases that are owned by Tandem. Tandem's objective is to drill and workover a total of 80 development wells on its existing leases throughout the remainder of 2005. Based upon projections that include an assumption of an average of $40 per barrel of oil and $5 per MCF of gas, the Company should increase its monthly gross income to $2,700,000 and net cash flow per month of $2,200,000 by the end of the 2005 drilling program. Should oil and gas prices remain at their current levels, it is reasonable to assume that the Company could realize a 20% increase in both gross income and net cash flow above current projections.
Tandem has outstanding common share of 22, 250,000 common shares, which is comprised of 20,250,000 of restricted share and 2,000,000 in the free trading float. There are presently no outstanding preferred stock, warrants or stock options. Based upon the current fully diluted shares outstanding, the Company on an annualized basis by the end of this year, should recognize earnings, before interest, taxes, depreciation and amortization of $1.19 per share.
Tandem presently has under lease approximately 30,000 acres with over 250 development drilling locations offsetting current producing wells and is in the enviable position of owning sufficient acreage to support a full three year drilling program without making other acquisitions. Tandem's management projects drilling an additional 100 development wells on its leases in 2006, increasing its EBITDA to a minimum of $1.70 per current outstanding share.
About Tandem:
Tandem Energy Holdings Inc. was formed to acquire 100% of the outstanding stock of Tandem Energy Corporation and to acquire other low-risk oil and gas properties located in Texas, New Mexico, Oklahoma, and Kansas. The Company combines principal shareholders with over 100 years of oil and gas experience, whose goal is to use their combined talents to build a major independent oil and gas company. Tandem has proven producing and proven unproducing reserves of $64,872,147. The acquisition of the Shamrock assets will increase producing and proven unproducting reserves to $252,623,452. Tandem expects to complete its financial audit and receive its independent engineering report, which will be issued according to SEC standards, within the next 75 days. At that time, the Company will file all necessary reports with the SEC to gain reporting company status, and immediately apply for a listing on the Nasdaq NMS exchange or AMEX with the goal of obtaining such a listing no later than the end of the third quarter of 2005.
FORWARD-LOOKING STATEMENTS:
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release, the Company will appropriately inform the public.
AI
