Sylios Corp. (fka UNGS)

[jay1988]

This stock is undervalued





NGS “Previous” Oil Production #’s Confirmed…

From doing some due diligence (DD) from using the Google search features, I was able to derive some of the same data that was posted here by MASTERTRADER a little while back. Before elaborating on such which led to the revelation of some serious oil production, I think there are a few things that first must be understood to help those who are not quite as familiar with UNGS as some of us who have been here for a while.

E 3 Petroleum Corp is a wholly owned subsidiary of US Natural Gas Corp. (UNGS):
http://www.usnatgascorp.com/subsidiaries.html

Go to Google and put “E 3 Petroleum Corp oil leases” in to the search area. About the third link down, you will get the Excel spreadsheet link below:

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&sqi=2&ved=0CG8QFjAC&url=http%3A%2F%2Foilandgas.ky.gov%2FTest%2520Library%2F2012-02%2520Transfer%2520Report.xls&ei=r3qiT7bxHOXo2AX827HaCA&usg=AFQjCNG0xjUxmPhTBmK9FiwoSU3vggowrQ

Further searching will get you another Google link of which was previously discovered by MASTERTRADER below which has the same data as above:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74977343

The operators of the wells for E 3 Petroleum Corp (UNGS) is MADISON BROTHERS INVESTMENT, LLC.

From the data above, there are 27 wells that are owned by E 3 Petroleum, but below is data from 25 of those 27 wells. A great many of them have a historical operational record for pumping oil/gas of which are located in the Pine Grove oil field, in Edmonson County, Brownsville, Kentucky. One could call Mr. Greg Welsh at 270-871-4336 at the Kentucky Division of Oil & Gas, who is the Oil Inspector for these wells, to officially confirm the production numbers that I have posted below for the E 3 Petroleum Corp wells indicated by their permit #’s.

Please know that these production numbers per well is back when the permits were originally issued. The current production numbers are not known. They are in the process of verifying the current numbers from UNGS from my understanding. Something else to note is that these numbers are operational results before any hydrochloric acid is used. So know that the use of chemicals will greatly enhance the production numbers below. The new production numbers are expected to be available for release in the coming days, but for now, please review the production numbers per well back when the permits were originally issued:



From doing the math from the barrels of oil per day (BOD), UNGS through its wholly owned subsidiary (E 3 Petroleum Corp) has a historical amount of producing 813 BOD. Given today’s technology, I would venture to say that UNGS will probably have much larger numbers for production than this historical amount, but let’s calculate a valuation based on this number.

Below are key variables to consider:
** Price of oil = $95.58 per barrel
http://www.oil-price.net/
** 813 BOD from only 25 wells
** Presume worst case scenario OS to be maxed AS to be 1,800,000,000 shares
** Net Profit Margin for the Oil & Gas Drilling & Exploration Industry = 13.6%
** Price to Earnings (P/E) Ratio for the Oil & Gas Drilling & Exploration Industry = 13.4
http://biz.yahoo.com/p/123conameu.html
** EPS = Earnings Per Share

$95.58 x 813 BOD = $77,706.54 per day

$77,706.54 per day x 30 days = $2,331,196.2 per month

$2,331,196.2 per month x 12 months = $27,974,354.4 per year

$27,974,354.4 per year x .136 Net Profit Margin = $3,804,512.19 Net Profit

$3,804,512.19 Net Profit ÷ 1,800,000,000 Maxed OS = .0021 EPS

.0021 EPS x 13.4 P/E Ratio = .028 per share valuation

Here’s what this potentially means… This means that UNGS could ”Fundamentally” be worth .028 per share at a minimum. I say at a minimum because this valuation only includes 25 wells out of Kentucky and does not include any of their other wells from other states that are in production. This amount could easily be doubled or tripled if not more.

Also, this valuation is from the historical data and does not take into consideration the new technology these days for extracting oil that would logically provide significantly enhanced numbers. The company is expecting to release the current production numbers in its upcoming financials that are scheduled to be released no later than 15 May 2012 as I had explained below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=75317768

I think the time is very near for some major updates to soon be released from UNGS.

v/r
Sterling