The Information Data Exchange recommends WRN - Vancouver.
Undervalued and a target of $1.50 has been set. Buy recommendation
under .50. Keep an eye out and join the run. Here is some information:
Westrend Natural Gas Inc.
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With oil prices over $25 /bbl the oil & gas service sector has
been very active lately. There appears to be a domestic shortage
of qualified, high tech oil & gas drilling companies.
Westrend Natural Gas, Inc. ("WRN") has its goal to become one of
those companies. To this end, it has requested approval from the
VSE for the purchase of Precision Horizontal, Inc. of Luling, Texas.
This approval is expected shortly.
Located in the heart of the Austin Chalk area, Precision has
established a solid, horizontal wire line drilling reputation and
has worked for and completed holes for numerous operators in Texas,
Louisiana, Michigan and Tennessee. Precision has just acquired a
commitment from an operator for up to $600,000 worth of drilling
work which will bring total fiscal 95 revenues to over US $1,000,000.
Precision is debt free and has appraised assets of over $2.1
million US.
Of even more importance is Precision's short radius steering tool.
This is one of a kind technology was developed in conjunction with
a PhD in electrical engineering and has proven successful on 8 jobs
todate, including one with the Department of Energy in conjunction
with the University of Michigan. Short radius steering has many
advantages over conventional steering in that it can make a drill
turn within 45' as opposed to the normal 300' of mid radius
technology. It is estimated that normal mid radius tools can access
20% of potential reentry reserves. This new short radius technology
can access the balance.
WRN is also looking to acquire Measure While Drilling ("MWD")
technology and equipment and to this end, it is negotiating the
acquisition of Striker MWD of Seguin, Texas. Striker is a new company,
but its principals have the industry experience and contacts to mold
Striker into a recognized MWD company.
Striker has recently signed a letter of intent with Haliburton Energy
Services to lease to purchase enough of Haliburton's BGD equipment to
give it 10 job capacity. Haliburton's equipment is superior to other MWD systems and is highly respected in Oil and Gas circles. Striker expects to take delivery of the Haliburton tools within 60 days. Westrend's officers are most positive about the profit potential in this sector of the Oil and Gas market.
It is anticipated that this current oil boom will be different from the boom of the 80's in that high tech equipment and techniques will drive the rush to new reserves and production. Companies like Westrend are well positioned to take advantage of a promising era of oil and gas exploration.
-Warren
infodine@portal.connect.ab.ca |
