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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

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To: RRainman9999 who wrote (9638)	7/22/2005 6:06:39 AM
From: Crossy	Read Replies (1) of 37387

re: Imperial Energy - IEC.L - UK/AIM - GBP 4,25 posted huge reserve numbers recently. P2 (P+P) came in around 160 MMBOE. And P3 I have on my tip sheet as approaching 2 BILLION Barrels of possible reserves.. Properties are in Russia and Kazakhstan The P2 alone is trading at big discount (50%) to implied net asset value. They already drilled a number of wells on their many properties. Mostly workovers which were then succesfully fracced. But development and exploration wells are coming too. Production will start early 2006 - guidance of > 2000 BOPD was given. The firm appears to be solidly financed with more than USD $20m cash in the bank. Appears to be materially undervalued on a NAV basis alone. Good for at least a 50% price increase on this undervaluation alone. And when oil will start flowing early next year it's BINGO ! Stock has been acting strongly over the past couple of days also when the rest of the oilpatch corrected. Independant assessment of its interests in Western Siberia conclude that • 2P (P50) expected recoverable reserves of 157 million barrels net to Imperial • The net present value ('NPV') discounted at 10%, net to Imperial is estimated at $410 million (= £234 million) on the basis of oil at $30 / bbl rising to $608 million (= £347 million) using $40 / bbl oil • Substantial technical and commercial upside within the fields • In addition, a number of other prospects are under review which could substantially increase these figures Current market capitalisation is £73 million and at 31 December IEC had £13 million in cash. I make that at least a 70% discount to NAV (or potentially 80% at $40 /bbl). Looks very good value at first glance. Evening Standard has a very bullish coverage. thisismoney.co.uk SHARES in independent oil explorer Imperial Energy were gushing today after the Aim-quoted Siberian driller said investigations found it has expected recoverable reserves of 157m barrels, giving it assets worth $410m (£235m) at conservative valuations. Imperial said independent consultants Tracs had given the 'proven and probable' thumbs-up to five fields in the Tomsk region of western Siberia. Imperial has equity holdings in the fields ranging from 51% to 80% in joint ventures with local investors. 'This has moved us into a different league,' said chairman and chief executive Peter Levine as analysts reckoned the reserves assessments put it on a par with other London-listed oil independents such as Paladin, JKX and Burren. 'We are now preparing a very aggressive schedule into 2006, including extensive drilling but also preparation for pipelines and processing facilities to handle what we now contemplate could be a very significant production increasing rapidly from 2008.' Shares in Imperial, floated 15 months ago at 25p, today leapt 37½p to 347½p giving the company a stock market capitalisation of more than £80m

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