Kerm, I picked up some Windsor Energy today. Looks like they are quickly adding to production and appears undervalued to me.
Bought after todays news release. What do you think?
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
WINDSOR ENERGY US CORPORATION COMPLETES WELL
DALLAS, Jan. 28 /CNW/ - Windsor Energy Corporation (Toronto: WNS) is
pleased to announce that its subsidiary, Windsor Energy US Corporation, has
completed a well on their Rincon California lease at a sustained rate of 600
barrels of oil per day. Windsor US has an approximate 80% NRI in this well.
This well was drilled using the latest drilling and mud technology and was
drilled at a 100 degree angle to vertical. The well cut over 1,000 feet of
Miley A sand extending the field production by 2,000 feet. With completion of
this well current production from the Rincon Facility is 2,500 BOE per day.
This is the second successful completion of a 19-well 1997 development
program that will further develop the Miley A sand and confirm the B & C
sands.
Windsor is a Calgary, Alberta and Dallas, Texas-based international
exploration and production company.
The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: WINDSOR ENERGY CORPORATION
ASE SYMBOL: WNS
NOVEMBER 26, 1996
Windsor Energy - Corporate Update
CALGARY, ALBERTA--Thomas E. Hogan, President of Windsor Energy
Corporation is pleased to release the Pro forma Asset Balance
Sheet of Windsor Energy.
Windsor is engaged in oil and natural gas acquisition,
exploration, development and production. The Company's interests
are located in Saskatchewan, California, Louisiana and Utah.
Windsor's principal property is the Rincon Island property located
off the coast of California.
/T/
Pro forma Balance Sheet
ASSETS - November 1, 1996
CASH AND BONDS: US$ Can$
---------------
13,600,000 18,375,378
CAPITAL ASSETS:
---------------
Proven Reserves
Rincon "A" Sands Ventura, Ca
8mmb proved, Ryder Scott Report
Value P.V. 10 percent US$30m,
Windsor Share 48,839,875 65,999,631
State Lease PRC 145, Ventura, Ca
Proved developed non-producing
reserves 700 mb (per in house
engineer report)
Value P.V. 10 percent 5,526,485 7,468,223
Saskatchewan oil properties
Value 1,367,290 1,847,889
NuGas 3,233,332 shares 9,699,996 13,108,103
Asset value $3.00 US
Sub Total: 65,433,646 88,423,846
Divided by 18,295,195 = per share
US$3.58 or Can$4.83
Probable Reserves
Rincon "B" "C" Sands Ventura, Ca
Estimated probable reserves 41 mmb
(per engineer report)
Value P.V. 10 percent Estimate
to Windsor 206,468,632 279,011,665
Hermosa Beach, Ca
Estimated probable reserves 30mmb
(per engineer report)
Value P.V. 10 percent $160m,
Windsor Share 50 percent 90,178,383 121,862,680
Castledale, Utah
Estimate 7BCF gas (per in house
engineer report)
Value $4m, Windsor Share 100 percent 4,000,000 5,408,405
Louisiana lease 1,500,000 2,027,027
Sub Total: 302,147,015 408,309,777
Probable 302,147,015 (Discount
50 percent) = 151,073,607
Divided by 18,295,195 = per share
US$8.26
or Can$11.16 + 4.83 = 15.99
US$ Can$
TOTAL (Cash & Bonds +
Capital Assets) 381,180,661 515,109,001
LIABILITIES:
------------
Term Bank Debt
Can$1.03 per share +/- 14,000,000 18,918,919
TOTAL: +/- 367,180,661 496,190,082
ESTIMATED ASSET VALUE:
----------------------
ISSUED SHARE
(18,295,195 shares) = per share 20 27
SUMMARY OF SHARE VALUE BASED ON DISCOUNTED CASH FLOW
Proven Reserves $4.83
Probable Reserves 50 percent discount $11.16
= $15.99
Less debt $1.03
= $14.96
Based on asset value
15 mmb proved times $5 = $75mUS
$101.35Can
or $5.54Can per share
Plus probables 50 percent discount $11.16
= $16.70
Less debt $1.03
= $15.67 per share
This is based on engineering estimates, but the company doesn't
warrant or guarantee these values.
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