Replies to post #9446 on Value Microcaps Junior Energy

[Bobwins]

Hi Ed,

Osage Exploration, oedv.ob, is interesting. They have a 25% interest in the JV that includes Slawson and USEnergy Development. The inclusion of an experienced horizontal drilling company like Slawson is a good plus for Osage. Many of these microcaps have limited experience with horizontals because they are so expensive compared to verticals.

The location of their property worries me a bit. I got interested in the Mississippian thru Red Fork Energy(RFE.ax/RDFEF.pk). They have a map in one of their presentations of their target areas for the Mississippian. It looks like Osage's land is on the extreme southern edge of the Red Fork map of the Mississippian. It is also well away from the areas that Chesapeake and Sandridge own.

That would worry me a bit along with the low acreage position. The partnership only owns 11,000 acres and Osage owns 25% of that.

I like their diversification, with Colombian oil and pipeline revs.

Overall I don't think their position in this resource play is big enough to really make a difference for me. Obviously the stock has been a nice winner for you, as it has been rallying recently.

A smaller play is AusTex Oil Limited, AOK.ax/ATXDF.pk A$.10. They have 300million shares FD and hold a 5,000 acre position in the Mississippian. They have revs from other wells in Kansas and no debt. Market cap is around A$30million. They are smaller and could have problems if they try to drill this themselves but I like their direct position more than OEDV.ob.

I have most of my money in Red Fork but congratulate you on some timely purchases of OEDV.ob. Direct US listing probably makes OEDV.ob a more obvious choice for US investors.

Another much bigger stock is Equal Energy. A former Canadian trust. These guys have a substantial holding in the Mississippian play that is not included in their stock price.

Equal has 45,000 acres in prime Mississipian counties like Grant and Alfalfa, that were leased for their liquids rich Huntoon gas play. They are mapping for a possible Mississippian drill program.

Equal has had declining production and their Cardium and Viking plays have not offset those declines. They are a majority oil and NGL producer so success in the Cardium or the Mississippian could be a big boost. Could be a nice sleeper with the luxury of significant production(8649boepd) cashflow(.42 for Q1) and oil/liquids rich opportunities in the Viking, Cardium and Mississippian that could generate big increases in netbacks. Sold off on Q1 miss to 6.50. Trades on the big board as EQU with a 200 million market cap.