IMPRESS ENERGY: ITC : 5.2cents. Buy Fundamentally Undervalued: value ITC @ 9 cents with a price target of 12 cents following extensive Drilling Program on reprocessed 3d in 2010 first quarter. Current shares on issue = 796,186,358 Market cap at current price. $41 million. Revenue from sales.(OIL) Year end June 2009= $8,837,345.00 Revenue : June quarter = $2,345,000 Revenue : September quarter = $3,202,000 Cash in bank at end of Sept quarter = $6,329,000 That is after quarterly expenses of approx: $4,000,000 : exploration $1,846,000 $768,000 for development, $1,107,000 for production costs and Admin at a low cost of $221,000 for the quarter. Company Debt is from the Smith Group and amounts to $2,600,000 And a further 9 Notes totaling $450,000 that may be converted into shares. The expected December quarterly revenue is expected to be approx. $4,000,000.{subject to oil price and currency fluctuations. A dramatic increase in the Bopd is expected in this current quarter. The Growler oil field which is mostly on very restricted choke is slowly increased. The Snatcher Oil Field is on extended Production Testing which will see 600 to 800 bopd in December. The Tigercat 1 is expected on production this month of Nov 2009 adding 100 to 200bopd. Production for March quarter 2010 should double the September production and subject to oil price and A$ currency is expected to exceed $6,000,000 for the quarterly revenue from sales on current pricing. The expected Revenue of Impress Energy is expected to double in June 2010 compared to June 2009 Blue sky continues with continued increases in quarterly production. Snatcher 3 due to be reported this week and as soon as tomorrow may add 200 to 500 bopd in future production if successful. With a probable 5 wells to be drilled in the first quarter of 2010 , I can only see continued success to this small company that is now rewarding the investor shareholder’s. 17.6% of the company is held or controlled by the Managing Director named as Sir Eddie by HC participant’s who themselves jointly own more than 2 % OF THE COMPANY. The top 20 shareholders hold approx 40% of the company. It’s a takeover but it will not be easy for the majority of shares are tightly held. All this Information has been obtained from reading the various reports to date and from direct public information given out by the company itself. I am not a Financial Advisor and you should do your own research. I do hold greater than 2,600,000 shares which is more than the daily turnover of Impress shares on the market currently. This is not a recommendation to buy ITC but is a condensed statement of its current income and possible or most likely revenue based on facts from the asx announcements. Fundamentally it is a great company with a current positive cash flow. As always there are risks associated with investing in any company which you have no control over. The share price targets was calculated based on expected revenue , earnings per share and using a PE {price earnings} applicable to this sector: 247
ITC Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
