Mike,
I don't think this is what you were asking for. But, if you have any interest in Canadian natural gas plays, I would suggest that you take a careful and detailed look at Key West Energy Corp (KWE.AL) --- keywestenergy.com.
On their home page, click on the small colored puzzle icon in the lower left-hand corner. This will lead you to info on their current projects, annual and quarterly reports, and bios of corporate management.
This management team has a rather remarkable record of success. Check it out. They are a far cry from the hype and slick deals of UP's and AOW's boards of directors and their stock-letter-writer minions. The record of Key West's management team and their current actions indicate that they are rather conservative, very knowledgeable gas and oil developers who do their homework. In 1986 and again earlier this year they bought, at distressed prices, producing properties that mgmt. believes have very good potential for significant improvement in production.
What they did with their 1986 purchases was amazing.
Now, the same mgmt. team is trying to do it again.
They recently bought for C$19 MM reserves valued at C$8.5 MM (at 10% discount), plus current production that gives C$3.4 MM cash flow per year (not counting any future increases in production from the new drilling program), plus average 62% interest in 40,000 acres that include most of 3 defined gas pools plus all of 3 well-defined oil pools, most of a fourth oil pool and parts of two more oil pools, plus 2 gas plants and pipelines with excess capacity.
Key West's current drilling program includes 5 development wells and 4 exploration wells. It has C$4.8 MM cash, which is more than sufficient to cover the current drilling program. The co. is raising an additional C$5 MM by issuing 4.95 MM warrants to purchase 1 share each at C$1.01.
Mgmt. is not incurring debt nor bringing in partners to fund the development of its holdings.
Key West has NO DEBT.
The quality of a company's management is what determines the company's value.
Key West Energy's management has a proven track record. It seems to be very solid as well as very savvy.
Because I bought into AOW and UP, I guess my market savvy is highly questionable. I am not recommending any purchase of this stock. I just am suggesting that you examine it very carefully.
Regards,
Hickory |
