Value Microcaps Junior Energy

[Regis999]

Porto Energy Summary

Porto Energy Corp. (PEC.V or PNRXF) is an international oil and gas company engaged in the exploration of crude oil and natural gas in Portugal , including the appraisal of a gas discovery. Through its wholly owned subsidiary, Mohave Oil And Gas Corporation (a Texas corporation with branch offices in Portugal ), the Company holds working interests in seven concessions in Portugal's Lusitanian Basin totaling approximately 1.9 million net acres. Through its exploration efforts to date, the Company has identified seven major exploration trends over its concessions including unconventional oil and gas resource plays as well as conventional oil and gas targets. Porto Energy's shares trade on the TSX Venture Exchange under the ticker symbol "PEC". For more information on Porto Energy visit www.portoenergy.com.



Porto has no oil or gas production but 1.9 million acres (100% working interest) of exploration potential, joint ventures and 3D seismic.





Went public via IPO March 28, 2011 raising $ 70 million at $ 1 share via Raymond James, TD Securities and Haywood.



Porto Energy Presentation August 15 in Denver--good presentation --one of Porto's JV partners GALP ($ 10 billion market cap) happens to own all the infrastructure (pipelines and refinery) in area that they will be drilling --Also note that Porto retains 50% interest !!

http://www.investorcalendar.com/IC/CEPage.asp?ID=169369&CID=


http://www.jenningscapital.com/reports/PEC20120725Initiating.pdf


PORTO ENERGY CORP. 12-Month Target: C
.40
(TSXV-PEC C
.07) Risk Rating: ABOVE AVERAGE

INITIATING COVERAGE

TAPPING THE EXPLORATION POTENTIAL IN PORTUGAL’S LUSITANIAN BASIN

§ Well rounded exploration portfolio in Portugal, with exposure to over 950 MMBOE of resources. Porto’s lands themselves have been assigned over 2.5 billion BOE of contingent and prospective resources – our 953 MMBOE estimate is after the effects of existing and anticipated farm-outs. On a risked basis, we reckon the Company will eventually find 184 MMBOE, giving a value (ExNAV) of $5.70 per share. (pages 3, 8, 9)

§ Portuguese fiscal regime and world prices result in excellent economics. Portugal imports substantially all of its oil and gas requirements, so is accustomed to market prices. Royalties top out at 9% for oil and 7% for gas, and income taxes are 29%. We estimate that this will result in after-tax netbacks of over $47/Bbl and $5/Mcf for oil and gas, respectively, with recycle ratios between 2.2x and 4x, depending on the play. (pages 4, 6, 10)

§ Alcobaça #1 well to spud in late August, testing a 588 Bcf prospect. Alcobaça is a pre-salt Triassic aged anticline with four way dip closure. If successful, we estimate that this prospect could add 294 Bcf (PEC WI) and over $2.00 per share in NAV (although additional appraisal wells will be required to fully validate those volumes). There is transportation infrastructure in the area with spare capacity, and we would look for production to commence as early as mid-2013. (pages 9, 17-19)

§ Lias stratigraphic drilling program to set up appraisal wells in early 2013. Porto’s JV partners will carry the Company’s share on an $11 million program that includes a 19-well program during Q3 and two appraisal wells in early 2013. This regional play has unrisked potential for 748 MMBOE (197 MMBOE PEC WI after expected farm-outs). (pages 9, 19-20)

§ Seeking joint venture partners to help fund exploration and appraisal program. Porto has already executed two such agreements for the Aljubarrota block and the Lias interval over several other concessions. It continues to run data rooms to attract potential partners for the rest of its blocks. (pages 5, 13, 14-16)

We are initiating coverage on Porto Energy Corp. with a SPECULATIVE BUY recommendation and 12-month target price of C
.40 per share.









MARK HODGSONVP BUSINESS DEVELOPMENTWITH BANKERS PETROLEUM http://treasurepicks.blogspot.com/2012/02/bnk-t-bnk-l-mark-hodgson-vp-talks-to.html



"All indications from new production coming on near Cushing seems to point toward that differential staying strong in the months to come. It makes what we are doing in Europe all the more attractive.As for a stock pick, I’d have to say Porto Energy. Joe Ash and the team have got some great exciting wells coming up,and with the shares down to
.15 from their $1.00 IPO, the risk/reward is more compelling than ever."



Webcast



Porto Energy Corp., (" Porto " or the "Company") (PEC.V), announced today that Mr. Joseph Ash , President and CEO, will present a corporate overview of the Company at the EnerCom Oil and Gas Conference in Denver , Colorado on Wednesday, August 15, 2012 at 3:35 p.m. MDT (5:35 EDT).


A webcast of the presentation will be available at:

http://www.theoilandgasconference.com/webcast.shtml

A copy of the presentation will be posted to the Porto Energy website at: http://www.portoenergy.com/investorpresent.html.


http://www.portoenergy.com/files/Porto 20120803.pdf

3D Seismic by Porto Subsidiary Mohave