Richfield Oil & Gas Co (fka ROIL)

[Rich]

Richfield Oil and Gas Has Proved and Probable Reserves Valued at $3.78 Per Share.

"Richfield Oil & Gas Company (OTCQX: ROIL) is an independant exploration and production company headquartered in Salt Lake City, Utah."

"The Company's current oil production flows from wells in fields located in Kansas and Wyoming."

"Approximately 8 months after securing additional financing, the company estimates run rate production from their five fields to be 681 barrels of oil (BO) per day, or $22.8 Million annually."

"With mid-90% well completion rates, the company's expansion strategy in the Mid-Continent Project calls for repeatable, low-risk, and highly scalable production with excellent IRRs."

Investment Highlights

Proved PV-10 value of $33.9 million provides low-risk reserves; SEC PV-10 higher than current market cap of $17.2 million.
The Company has significant untapped production potential.
IRRs on mid-continent wells are projected at up to 329% for reworked wells, and up to 126% for new drill wells.
Central Utah Overthrust has high-risk, high-reward potential.
ROIL is expected to raise $10-15 million in capital that will put its full production plan in place.

Overview

Richfield Oil & Gas Company (OTCQX: ROIL) is an independent exploration and production company headquartered in Salt Lake City, Utah. The Company’s current oil production flows from wells in fields located in Kansas and Wyoming. In addition to several thousand acres in Kansas, Richfield also owns strategically-located exploratory leases in central Utah on trend to major oil discoveries. Founded in April 2011 by seasoned industry executives, Richfield is dedicated to developing and growing organically through the exploitation and development of its existing field inventory by the use of drilling, workover, recompletion and other lower-risk development projects to increase reserves and production. In addition, the Company is seeking bolt-on acquisition opportunities in Kansas and Utah.

Value Proposition

Our valuation for ROIL is $4.45 per share. The majority of our valuation is derived from the PV of projected cash flows from the Company’s proved and probable reserves ($3.78 per share). In addition to this, ROIL has 11,729 net acres in the Utah Overthrust play, which has the potential for an oil discovery that approaches 1 billion barrels.

http://www.redchip.com/visibility/investor.asp?symbol=ROIL