This is from the OLEX thread. Remember CAYC is acquiring this company.
quote.yahoo.com
Thu May 28 CAYC Caye Chapel Inc. Finalizes the Asset Acquisition of Great Plains Inc. for $6 Million
Thu Apr 23 CAYC Oilex's Infield Drilling and Workover Project(s) Are a Success
Thu Mar 19 CAYC Caye Chapel and Oilex Enter into Consolidation Discussions
Wed Mar 4 CAYC Caye Chapel, Inc. Signs Letter of Intent to Acquire Drilling Company
Tue Mar 3 CAYC Caye Chapel, Inc. Signs Letter of Intent to Acquire Drilling Company
Subject 4238
Started By: Eric Maggard
Date: May 8 1996 2:51PM ET
Summary of the Company:
1) Valued at over $2 by Auditors
2) Continuing accutions
3) About to close on a acqution in Colorado
4) Currently at $.75
5) With acqutions could be valued at over $6
6) With audit completed, starting process to become NASDAQ small cap
See the following report and company press release:
SMALL WONDERS RESEARCH REPORTS ................. Date: April 22, 1996
Mike Harrison Tel: 860-688-6297 Fax: 860-688-0226 Email: harrison@tiac.net Web
Site:
tiac.net (updated 2 market days after publication)
Oilex International Investments (OTC BB: OLEX) Call Allen Jones 303-470-8783
Company Web Site:
oilex.com
Industry Background: The recent break out of oil and gas prices to five year highs provides considerable credence to the theory, proposed by major analysts and billionaire investors (Fortune, Oct 95) as early as fall of 95, that a major trend reversal has occurred and that energy has begun a world wide economic-expansion driven bull market cycle. The Fortune article, titled "Your last big play in oil" documents recent increases in demand and projects only modest increases in production but massive increases in demand over the next 15 years. On the demand side, rapidly developing nations (many once referred to as third world) throughout Asia, Eastern Europe, and Latin America, are all simultaneously building factories and infrastructure, while their populations are clamoring for cars, homes, appliances and consumer goods. On the production side, many large fields outside of
OPEC have or will soon peak in terms of output, including North Sea and Alaska. Russia, once a major exporter, has seen it's capacity hampered by the collapse of communism and decades of failure to replace and maintain oil equipment. China, once thought to be a
potential future exporter, has seen internal demand outstrip supply by 2 million barrels a day.
The American Petroleum Institute, among others, insists that there are enough world reserves to insure that we will always have oil. The problem is that it is time consuming and expensive to get it out of the ground, especially in remote, physically and/or politically treacherous areas. In particular, the extremely low price of oil over the past few years had convinced many producers to leave it in the ground, and even to defer equipment purchases and maintenance. There will be a serious lag now, as production struggles to catch up in the face of so much demand. The article mentions four billionaire investors making big recent oil plays, including famous wildcatter turned movie producer Marvin Davis, who has been buying oil leases in Texas, Louisiana and Oklahoma on the cheap. A source close to Davis
says one of the leases has been found to contain reserves worth about $1 billion, and that Davis paid $650 thousand for seismic data now worth $250 million.
Company: Present management acquired controlling interest in Oilex in November 1994, garnering $5.4 million in TLC (tax loss carry-forwards) along with lease interest in five wells in Clark and Smith Counties, Mississippi (which are slated for sale in 96). In 1995
management began acquiring additional assets, and since December 95 the company has aggressively added reserves in Texas, Colorado, Utah and West Virginia through acquisitions and lease purchases, increasing proven reserves from 1.3 million barrels of oil and 23.3 billion cubic feet of gas to 4.52 million barrels and 30.3 bcf of gas. Without
factoring in the recent 25% rise in prices, the dollar value of the companies reserves has increased from under $100 million to $150 million. Current prices yield a reserve value of $187.5 million, or a break-up value for the company, at a conservative 50% discount for oil
in the ground, (with 17 million shares outstanding, of which 14.5 million are insider held) of over $5 per share. All this is without inclusion of the companies latest acquisition (White River Dome in Colorado), the details of which have just been announced (see Investors Business Daily, April 19, page A17). I will report these reserves and valuations following some independent verification, but they are in the same ballpark as Marvin Davis' lucrative deal mentioned above.
The companies drilling program will begin next month at the Big Foot field in Frio County, Texas. This lease consists of 35 existing wells which were capped 3 years ago, 10 of which will be reworked in 1996, with the other 25 slated for production in 97. This is a spacious field, on which 10 new horizontal and one new vertical well will be drilled in 97. In July this year, the first of 10 wells are scheduled for the new White River project, with an additional
well to be drilled each quarter. In late 96, the first of two wells will be drilled at M Half Circle, in Jefferson County, Texas. The second well in this field will probe the LOX B formation, which is calculated to contain more than 24 BCF of gas. Also slated for late 96
is a test well at the Carancuahua Creek prospect in Jackson County, Texas, followed by 2 additional wells in 97, looking for an estimated 5 million barrels of oil total. The companies financials are currently being audited by Moore, Stephens, Simonton, LLP, for 1993, 94, and 95, which will allow the company to become fully reporting (expected this quarter) at which point they will apply for Nasdaq Small Cap listing.
Joe PTG&LI !!! |
