Replies to post #15688 on Heartland Oil and Gas (fka HTOG)

[Drax Tracks]

Many companies dilute shares when they need money. I can name fifty or more, but this board is about HTOG (and UPDV as the parent company) You are right, The old UPDA was not very reputable. UPDV new management seems sooo much better. The new management wants to build value and shareholder confidence. Every pennystock trader goes through some tough times with their company. IMHO the worst may be over and I, for one, believe the old board and management were not doing such a great job. Give the new people a chance. They did get the financing they needed. If you still have your shares they could be worth allot more than you paid for them.

Beacon Research

Heartland Oil and Gas Corp.
Heartland Oil and Gas Corp. (HTOG) explores for and develops natural gas resources, primarily consisting of
coal bed methane, in the Cherokee and Forest City basins of northeast Kansas.
HTOG’s production from its Kansas properties has increased consistently since it was acquired by UPDV in 2007.
In April 2008, HTOG reported revenues from natural gas sales exceeding $266,000, including sales exceeding
$100,000 from its CBM fields in Kansas. The Company is close to completing a 4 ½ mile pipeline extension that
will connect 12 additional wells in its Jake coal bed methane field. The pipeline extension significantly expands
HTOG’s Miami County operations and could potentially double revenues.
HTOG has also expanded production from its Catlin Oil & Gas field in Jack County, Texas, which is currently
producing at over 300 MCF/day. In Palo Pinto County, Texas, HTOG plans to drill another salt-water disposal
well. In addition, HTOG is negotiating terms for connecting to a highly efficient low-pressure gas sales line
and expanding production from five wells drilled and completed in the Barnett Shale. All these developments,
coupled with reduced overhead spending and payroll cost reductions implemented last year, position HTOG for
improved profitability in upcoming quarters.
HTOG has initiated discussions with institutional investors and private equity funds specializing in oil field
projects regarding funding for a 300 well drilling program. Drilling locations in southeast Kansas have been
identified and drilling is planned over the next 12 to 24 months. Reserve forecasts by consulting petroleum engineers
involved in this project estimate a 10 year production life and 100,000 MCF of production for each well.
At recent natural gas prices, this suggests each well could produce $1.2 million in revenues over its useful life.
Total drilling costs for the 300 well project are estimated at $39 million.