Donald,
I am somewhat familiar with Tappit Resources. I first became aware of company about two years ago at which time I believe they were listed on Vancouver Exchange. I requested information resulting from an advertisement in Investors Business Daily where paid article consisting of operations and financial report was provided. The article was provided by a promotion firm. Since that time, I have been receiving reports of company progress.
The company participated as a joint partner in all projects with Cypress Petroleum. Both companies were managed by same people and I believe eventually merged operations resulting in what is today's Tappit Resources. Shares tumbled in value after I learned of them and have since more than doubled from lows to a current price of $0.43.
Just saw their 6 months report. Revenue has increased subatantially over same period of year ago. However, revenue for 2nd qtr was flat when comapared to 1st quarter. You can find detail by going to wwwcdn-news.com .
For further detail including previous quarterly reports, 1995 annual report and news releases, go to wbm.ca . You can contact the company via e-mail, tappit@eaglewbm.ca . They also have an 800 telephone number which is listed at sites I mention above.
I never considered reviewing the company for potential investment because (1) It was a Vancouver listed company (now listed on Alberta) (2) I didn't like the idea of two publicly traded companies (since merged) structured and controlled by same officers (3) It was highly promoted (continues to be). Howewver, after saying all this, the company would appear to be making progress under management put in place about 2-1/2 years ago. They produced 253boe/d for 1995, currently produce 373boe/d and expects to exit the year around 750boe/d with further hopes to produce 1000boe/d in 1997.
You should consider investment merit by finding out what their net asset value is based upon 15% discount of reserves and then compare to share pice. They are projecting production for 1996 and 1997. With that im mind, the company should be able to tell you what they are projecting in terms of cash flow per share for those years.
Also ask what extent of undeveloped acreage they have. Further, ask what is the evaluated life (years) of their reserves. Last, can they support their projects from cash flow or, will there be a need for futher capitalization. If so, will they plan to gain equity via new share offerings/warrants or, via bank financing. With the answer to these questions, you will be able to determine the potential of your investment. I can help you if you should desire such.
Kerm
(boe/d) barrels of equivilant daily
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