Heartland Oil & Gas Corp. Rated ?Neutral/3? In Final Investrend Research Update / FinancialWire® January 17, 2006 ?(FinancialWire) ?(Investrend Research Syndicate) ?Heartland Oil & Gas Corp. (OTCBB: HOGC) has been rated ?Neutral/3? by Investrend Research analyst Daniel Capo, CFA, in a final Update following the company?s decision to discontinue coverage.
January 17, 2006 (FinancialWire) (Investrend Research Syndicate) Heartland Oil & Gas Corp. (OTCBB: HOGC) has been rated ?Neutral/3? by Investrend Research analyst Daniel Capo, CFA, in a final Update following the company?s decision to discontinue coverage.
The analyst also stated:
The entire northern Forest City Basin acreage has been deemed uneconomic and Heartland has began plugging and restoration work on wells and locations in the Forest City Basin project area, including "Soldier Creek?
For the period ending 9/30/2005, Heartland posted its largest quarterly loss to date of ($ 0.56) per share due to impairments and lease expirations, representing a $17,523,851 impairment charge on oil and gas leases abandoned in the Forest City Basin and impairment of $3,881,427 on two pilots in the southern area.
The dispute with FEIPCO over the Iraqi venture remains unresolved and Heartland has decided to expense the entire $ 4,105,500 advanced to Arabian
The company has shifted its strategy away from developing its northern properties, and is currently concentrating its efforts on the southern properties acquired from Evergreen Resources.
The company announced the resignation of its President Richard Coglon effective January 1, 2006. The company appointed its COO Phil Winner to the position of President and CEO. The company also appointed Charles B. Willard as COO, and Robert L. Poley, CPA as CFO.
Heartland announced progress on the construction of the natural gas sales pipeline tap from the Lancaster pilot to a tie in with a gas transportation line. The company expects gas sales to start in January 2006.
Since the last Benchmark Report, Heartland?s stock price has traded significantly lower on increased selling pressure. The stock is currently trading near a 52 week low. The company has suspended Investrend Benchmark Research Coverage.
The only positive note in the recent update involved the Bourbon Arch area, where Heartland holds interests in approximately 130,000 acres. This area holds the ?The Lancaster Pilot?, which is producing approximately 350 mcfgpd. Also, eight additional wells on the ?Jake?, ?Beagle? and ?Osawatomie? Pilots combined for 225 ? 250 mcfgpd; bringing a total production of approximately 600 mcfgpd. Heartland has added 10 wells and has done a good job revitalizing these assets that were acquired from Evergreen. Gross production is up near 1000% from 60 mcfgpd to 600 mcfgpd.
Heartland announced progress on the construction of the five mile long pipeline which will connect these producing pilots into a gas transportation line.
Due to the large write downs recorded this quarter, the company currently has $7,771,069 in property assets on the balance sheet and approximately $3M in cash.
Revenues continued to be nil as the company remains in the exploratory phase as of September 30, 2005. The company has announced that they believe that gas revenues will be booked in January 2006, however without additional visibility into Heartland?s progress developing these properties and construction of the pipeline, we can not make any estimates on future revenue streams.
Heartland Oil & Gas is a high-risk, speculative investment that is trading near an all time low. The company is in the process of restructuring operations and has recently reported its largest quarterly loss due to significant property impairments. The company is now concentration on revitalizing southern property wells to initiate gas sales and book revenues. According to the company, first sales will be recorded in January 2006.
If this projection is realized it will be a significant development for Heartland, and shareholders may observe a renewed interest in Heartland?s equity. If revenues are not realized, the company?s shrinking property base and working capital may make it difficult for Heartland to continue operating into 2007.
The full report, including important disclosures and disclaimers, is at investrendresearch.com and at the company?s InvestorPower page at investrend.com and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.
The analyst?s credentials are at investrend.com
Heartland is enrolled in Investrend Research?s pioneering professional research program, which facilitates independent analysts to provide financial coverage for shareholders in companies that otherwise, would have little or no analyst following. Enrollment fees for Benchmark basic coverage are $21,800 and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor principals of Investrend Research may own or trade in the stocks of companies under coverage. Investrend subscribes to the ?Standards For Independent Research Providers? at firstresearchconsortium.com and the company?s research is enrolled for investor monitoring at shareholdersresearch.com
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