MTEI-Brief Summary
Brief Summary
Mountain Energy Inc. is in the business of acquiring primary
producing reserves along with the development and production
of passed over developed domestic oil and gas reserves
utilizing modern technology to find and enhance production.
Mountain currently owns 30 separate properties in West Virginia
with approximately 1,300 acres owned in fee and an additional
1,300 acres of mineral rights. Reserve estimates by the U.S.
Geological Survey (''U.S.G.S.'') indicate in excess 10,000,000
tons bituminous coal. This low sulfur, low ash content, high
BTU, clean burning currently sells for $25-$28 per ton. With
cost of mining and transportation estimated at $11-$15 per
ton, this will show a $10 per ton conservative net profit,
(representing maximum cost to mine and minimum selling price),
providing net asset value in excess of $100,000,000, with a
potential of $170,000,000. The U.S.G.S. estimates also indicate
in excess of 2 billion cubic feet of coal methane gas. This gas
currently sells in excess of $3.00/MCF 1000 cubic feet. In most
cases this gas is subject to an alternate fuel tax credit in
excess of $3 MCF, for an estimated value of $5/MCF valued at
$10,000,000. This translates to approximately $2.85 per share.
History indicates that U.S.G.S. estimates usually represent 25
percent to 40 percent of actual minerals in place.
Mountain Energy has received acceptance on its purchase offer
to acquire an additional 8,000 acres of mineral reserves in
Lincoln and Raleigh counties in West Virginia. (Use the
numbers from the preceding paragraph to extrapolate the value
of 8000 West Virginia acres.) |
