eeg is a no brainer for proactive investors

It seems Proactive Investors Australia, like EEG’s excellent Kansas Oil drilling prospects for its next 10 wells, kicking into the 3rd well this month of May.

The excellent solid fundamentals for EEG to rise in SP, are a simply no brainer for Proactive Investors.

EEG’s first 2 oil wells last month have been commercially successful and the remaining 8 wells only need a 5 out of 8 success score card, to achieve last year’s excellent profitable result, which will be cream in the cake.

All wells successful of course, will be the icing on the cake and will mean rapid elimination of all remaining minor debt for EEG ....leaving it positively dangerous for absorbing new profitable acquisitions of profitable but poorly managed current producers.

EEG, is rapidly reducing its minor acquisition debt with its $3mil+ increasing profits each quarter, so these new successful oil wells coming online, over this month and next, will only add to that profit line.

Macquarie Bank must be very happy with EEG’s profit momentum, and seems ready to fund future profitable acquisitions that are currently being investigated.
It is the major shareholder of EEG, now.

Budget spent on acquisition investigation so far last Quarter was $80,000. Last time EEG did a deal, its shares SP skyrocketed.

Also expect a report soon in May regarding how many of EEG’s existing 2,000 gas wells can be upgraded to increase reserves, ready to take advantage of turnaround prices in gas.

I see where big deals are being done for long term export of USA natural gas to Asia. USA will once again be a major exporter of Energy, because it has both coasts with heaps of quality ports infrastructure and the shipping to do it.

Here’s the latest Proactive Investor’s report at:
http://www.proactiveinvestors.com.au/companies/news/28183/empire-energy-group-continues-kansas-oil-drilling-28183.html

“Empire Energy Group continues Kansas oil drilling
Friday, April 27, 2012 by Bevis Yeo

Empire Energy Group (ASX: EEG) is set to early next month drill the third of at least 10 development wells it is drilling in the Central Kansas Uplift.

The first well is already producing about 24.5 barrels of oil per day while the second has being completed with the company waiting on its results.

Each of the 10 wells targets production of 30 to 40 barrels of oil equivalent per day with ultimate recoveries of more than 50,000 barrels of oil.

Should all 10 wells be successful, production from the Central Kansas Uplift leases would increase from recent output of about 624 barrels of oil per day from 256 wells targeting the Arbuckle, Kansas City, Lansing, Viola and Shawnee formations.

Besides the wells, Empire Energy is also planning 5 polymer recompletions.

Further production and reserves upside could come from the 16 proved developed non-producing wells to be reworked, 31 proved undeveloped drilling locations and 56 probable locations.

All these are also expected to increase proved and probable reserves from the current 4.8 million barrels of oil equivalent.

Empire Energy has an average 74.5% working interest in the leases and is operator of 99% of the leases, which cover 18,000 acres (72.8 square kilometres) over 16 counties.”