KING is the one oil/gas I think is overlooked.
Go read the filings. Just one asset is .90 /share.
another is 1.10/share
and yet another is $14/share.
#1 King Recently Acquired a $65 Million Seismic Exploration Database
In May, KING completed the acquisition of an exploration database with an appraised value of $65 million (see May 11, 2001 8-K Report). Included in the acquisition were 160,000 miles of seismic data, plus geological prospects, geophysical data, well logs and other data covering offshore properties located in Texas, Louisiana, and Mississippi. The Company has stated that it intends to pursue new drilling programs based on their interpretation of this data.
#2 Potential World Class Oil Reserves in Gabon
In February, King Resources announced that it had acquired 100% of Nescor Energy Salsich Gabon, Ltd., subject to the agreement with Nescor Energy Company, Ltd., which holds the 300,000 acre Salsich permit in Gabon. An OPEC country, Gabon is situated on the west coast of Africa, and has had a stable, democratic government since it received its independence from France in 1960. Shell Elf Gabon, Marathon and others produce approximately 350,000 barrels of oil per day from nearby oilfields.
According to the company, potential reserves at Salsich (defined by existing seismic and/or well bores on the permit) are over one billion barrels. Two structures that have been drilled and tested (and which can be developed first) have potential reserves of 80 million barrels. KING reports that the first well will be drilled as soon as a drilling rig can be shipped to the site.
#3 Onshore United States Potential
The company controls several exploration projects in the United States onshore, where a major portion of drilling will be done to establish cash flow in the low risk onshore continental United States environment.
#4 Huge Land Position in Australia Targeting Coalbed Methane Gas
On March 1st, KING announced that it had acquired an Authority to Prospect covering approximately 470,000 acres in Queensland (Australia). The venture is targeting coalbed methane gas deposits and will be operated by Queensland Gas Company Limited. Drilling is scheduled to begin later this year. KING has negotiated a very favorable deal on this acreage: the company is "carried to the tanks" for a 50% working interest in the first two wells , and has a 25% working interest in the next two wells: KING will pay 25% of the drilling and completion costs on all subsequent wells.
#5 Management Has Successfully Built And Operated Major Independent Oil & Gas Companies
King Resources' President and CEO, Norris Harris has a proven track record of building successful and profitable energy companies and delivering value to investors. Mr. Harris was previously President and founder of Centex Oil & Gas, which became an NYSE-listed company (the name was subsequently changed to Cenergy). After five years of operations, Cenergy had revenues of $101,530,000 with earnings of $46,587,000.
Mr. Harris was also a founder and President of Basin Exploration, Inc., a subsidiary of Basin Petroleum Corp (AmEx listed). This company was sold for $10 per share (plus warrants worth approximately $10 more per share), and is now part of Texaco. Norris Harris founded several other companies, including Seismos which was a joint venture with the German government and is now part of Schlumberger. He has been actively involved in exploration since 1956 in the Arctic, the North Sea, North Africa, South East Asia, West Africa and numerous other areas, and was in the forefront of the development of modern geophysical technology with which oil and gas can be identified with seismic prior to the drilling of wells.
What's a Reasonable Valuation for King Resources ?? |
