Consider this little company...
Perhaps some of you have read reports put out by Tandem Capital on the group "misc.invest.canada" regarding Energas (EEG.V). I have looked into this company and like what I see.
Energas, an Oklahoma based company, has just brought in two oil/natural gas wells in northestern Wyoming, the most recent being in July of this year. Although they're joint ventured, EEG has rights to increase its position to majority ownership. The first well completed in late winter (called the Lovitt #1) is still "cleaning itself out," and flow rates will be released soon. The second well (known as the Finley) was just completed this month and struck a good pay zone. Flow rates will be determined once they stabilize. Both are producers of light greenish sweet crude that brings $20 to $23 a barrel.
The company is emboldened by having two successes in a row after a long disappointing period of eight dry holes. Their new Wyoming propertes lie adjacent to some very large producing fields, and they have plans to test deeper more productive zones which lie below their current hits. The second well near Lance Creek, Wyoming, is in a region which hosts a prolific zone, known as the Leo. This same zone also underlays the first well, according to seismic data. Mr Shaw, president of the company, believes that this zone could produce up to a thousand barrels a day from one well. I'm not certain, but the Leo might be the target of their next drilling near the site of the Lovitt # 1.
The company is run by just three persons right now, so overhead is low. They're really not out hyping the company and expending assets on promotion. All it would take would be to hit one big hole and this
little outfit could be earning over $100,000 a week! Plans are to use present income flow for developing their properties in Wyoming where they know they have oil. Frankly EEG sounds like a success story in the making. Share price has had a recent low of about C$0.30 during the Western Canadian Market sell off but has risen to over C$0.50 with the Finley success. As Energas adds more and more producing wells, we should see an inexorable rise in share price - maybe $C3.00 to C$5.00 by this time next year.
Give George Shaw (the CEO) a call at 1-800-365-6201. If he's not in, then talk to Cindy, who is very knowledgeable about the company's properties and plans. This might be the best investment tip you get this year. My own relationship with the company is as shareholder. I have no other affiliation.
Don DeKold
Gainesville, FL
P.S. Tandem Capital is Energas' PR arm. They can be reached at 1-800-831-2956. Speak to Charles Dejardins or Doug McFaul.
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