The Oil & Gas Elephant Hunt Message Board

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Gold/Mining/Energy : The Oil & Gas Elephant Hunt

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To: Brinks who wrote (260)	5/28/2007 10:54:10 AM
From: Brinks	Read Replies (1) of 310

Marion Energy Has What it Takes By Rudi Filapek-Vandyck Following on from our story earlier today (Re-Rating Ahead for Marion Energy) we can now report that stockbroker Intersuisse has joined the ranks of local equity specialists with a positive view on developing gas producer Marion Energy (MAE). In a report published today analyst Peter Arden says he believes the market does not yet fully recognise the potential gas reserves and production that Marion Energy has, especially in the major Oklahoma and Utah regions. Similar to a view expressed by Patersons in our earlier story from today, Arden would expect the shares to be re-rerated as the company "continues to bring on significant amounts of production and releases the long-awaited reserves certifcation report." The reserves certification report the Intersuisse analyst is referring to is a so-called Independent Engineers Reserve Report which is expected to be released by the end of July. It is expected this report will demonstrate the "substantial nature" of Marion Energy's gas reserves as well as the company's production potential. Management at Marion Energy expects to have gas production from up to four wells at Clear Creek, seven wells at Helper and in excess of 15 wells in Oklahoma within the next few months. Intersuisse believes the company's projects over the next few years should be readily funded by the company's cash reserves, debt facilities and its growing operating cash flow. It is the brokers view that the U.S. is increasingly facing a tightening gas supply situation and that the country will be forced to rely on more on imported gas via Liquefied Natural Gas (LNG). This should create a favourable trading environment for the likes of Marion Energy. The broker recommends the stock as a "speculative buy for longer term investors with an appropriate risk profile that includes an appreciation of the volatility and risks for smaller energy companies." The broker sees "significant share price upside" for Marion Energy over the next few years..

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