It is worthwhile forum pundits checking out the Annual Report...

It is worthwhile forum pundits checking out the Annual Report released late Thursday that preempted the rush for scrip yesterday.

The resource section states:

"Senergy released a Reserves Report in January 2010 that concluded the hydrocarbon potential included 8.6mmb of recoverable reserves"

and

"the Board believes that Block 31 now contains 80.4mmbo recoverable reserves and resources. The key focus over the next 6 to 9 months will be drilling the J-51 and J-52 wells which should see some of the value of Block 31 unlocked through an independent upgrade of reserves, from what are currently classed as resources, as well as increased production."

and

"As announced in March 2010, the J-50 well was a commercial discovery and intersected 110m of Middle Triassic pay gross pay with 69m of nett pay and 360bpd production."

The value of these reserves/resources/production have been thrashed to death in this forum but, fundamentally the 8.6mmbo has to be worth $10/bbl which alone has to give a mc of $86M versus the current $62M at 4.1cents. Add cash, J51, cash flow and a bit of bs (blue sky of course) and -whallah! - we have $100M mc by Xmas...more later on that.

Convert additional reserves/resources of 80mmbo to reserves and we are looking at some real added mc value.

Then we have an annual cash flow of $10M from J50 (at $75/bbl - note the overnight NYMEX of $81.6 with some analysts predicting $100 by the end of this year).

In addition, Waterford has added value by becoming a cornerstone investor, but, perhaps even more importantly, Soyuzneftegas Limited has loans to JPR converted to 46.1M shares (~3% of the expanded shares).

Well might anyone ask, why "more importantly"; well! Soyuzneftegas(s or z)is a company created by former Russian energy minister Yuri Shafranik who is currently Chairman. He is also a chairman of the Union of Oil and Gas Producers of Russia.

Soyuzneftegas has been involved in a lot of very successful transactions. Yuri Shafranik, being a former Russian energy Minister, would have a lot of influence within Kazakhstan.

Perhaps Yuri & Waterford will assist JPR in their stated ambition:

"The Company continues to review opportunities to extend Block 31 based on the availability of what is regarded
as prospective exploration acreage in the area."

Anyway, JPR's sp will be > 6.6cents by Xmas because that will give JPR an mc of > $100,000,000 which is the trigger for the Directors Thorpe, Gander and Svanbayev to be granted their 5M shares each; not a bad pick-up - expect the announcements to flow freely from now on...