Excellent analysis on TNOG:
Posted by: ineedtoknow
Date:6/22/2005 7:08:27 PM
Good Evening All,
For all of you that are speculating on the future SP. Let me explain the very basics of financing in the oil business.
First, All small oil companies are usually under funded. They are started with a PE that has an idea were oil can be found. In this case it was Mr Maulpin. Kent J. had the idea to finance it through a public shell company. If they were successful, the return on investment would be much greater than if they were private. Or if they ran out of money, they would have minimum exposure personally.
Second, If the PE was on target will the leases, as Titan was, then they would then just need to have to confirm the past data of the amount of oil and gas that is in the ground.
Now here comes the good part in relation to Titan. And I will say, this is when I found out about the company. The previous estimates of the reserves of oil and gas was approx. $120 million. When Titan drilled the third well, they were surprised at the pressure. I believe that Pete stated that in his video. They have also announced that they needed larger tanks for a flow test. Which is good news. What will be better is the other test are being done to quantify the flow test. When all is said and done, the company will report to all the results. When Kent J. has those results, that is money in the bank. You see, its an ASSET, and you can get all the money you would need with those certified results. Unlike these other companies that have nothing. So we all know that the results will show much more Oil and Gas than was previously thought. I believe you will see from that one field, both Gas and Oil about $250 million in reserves after cost. So now you TA guys out there do the math.
What this does for Titan, they now have the $$$ to lease more land, buy more equipment, and basically grow as fast as they want. There reputations have gotten Titan this far, now this first lease will allow them to create a great company with many, many wells. In the end all shareholders win.
As I have stated before I personally have no relation to Titan. I am only a shareholder.
AI
