East...

East Chalkley
TargetEnergyWorkingInterest35%
2009IndependentTechnicalSpecialist(RISCPtyLtd)reportEastChalkleyassessedmostlikelytechnicallyrecoverablereservesandresources(2P/2C)of1.7MMBO withanupside(3P/3C)estimateof4MMBO.
Fieeldproducingapprox100BOPDfromPinePasture#1,#2wells.
2010potentialInitialProductionof200‐300BOPD.
Potentialforupto6appraisal/developmentwells+2
EastChalkleys(mostlikely)NPV10valueatUS$12.1
millionnettoTarget witha(upside)PV10valueof
US$31.8millionnettoTarget.

Merta#1 - NOTE: that in the last fin figures this well had only been online from 10 june and produced - 197 BO & 179mcf in 20 days inside that report. They state 120BOEPD from Julywith the Merta#1andwithEastChalkleyproductionsubstantiallybackonline.

Future Upsides:
Increased sales from new online wells and Re-fract. Drilling into a PROVEN OIL field with East Chalkley with tap into production sales ready to roll.

Pros:
New drilling into KNOWN fields - lower risk.
This qtr should show better production rates with new wells online for the full qtr.
A small O&G WITH ACTUAL INCOME!!!!! Not a pie in the sky maybe we will get cash in the door company.
Market Cap around 3Mil
Potential Incomes between 12-31mil
1.2mil in the bank before next drill site
Can cover the upcoming drilling and re-fract work with current cash

Cons:
As discussed some delays on info (std for alot of small OG)
Admin fees - They pay themselves well, this does put some people off the stock!

Compared to some other small OG stocks out there with no real income of any form and unpriven oil drilling locations TEX may seem a less risky soec stock - NOTE its still a spec stock!!

Please feel free to correct add information Best of luck to ya !