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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (96820)	2/15/2008 8:32:15 PM
From: J.....	Respond to of 206325

Gotten past the steep tax rates and bought a decent position in Revus. I think they look really solid. Revus recently acquired Palace and their 29% interest in the UKNS Broom field and SW Heather discovery. 24mm bbls of reserves and contingent reserves. As of today Revus is producing over 6k bpd with 4k from the UKNS and 2k bpd from the NCS. Beyond the Palace acquisition Revus has a number of development projects and a very active exploration program. Development projects.... 20% interest in the NCS Yme project. Revus should net 11mm bbls and 8k bpd ramping up in mid 09. 25% interest in the NCS Astero project. Most likely reserves are 50mm + bbls gross. 15% interest in the NCS Oselvar project. Probably 40mm boe gross. 20% interest in NCS Storskrympten estimated at 40mm bbls gross. 30% in the recent NCS Luno discovery with 60 to 190mm bbls gross potential. Not a bad line up for a $500mm market cap company. Only 42mm shares outstanding. They are carrying $170mm in debt from the Palace acquisition but have roughly $100mm in cash. They have a $150mm annual exploration budget. $100mm for the NCS and $50mm for the UKNS. Numerous drills are already scheduled for 08 and 09. Their goal is to add 50mm bbls to reserves annually. Two important upcomming drills are NCS Jordbar where they have a 20% wi in this 370mm boe gas/condensate prospect. They have Jordbar risked at 21% COS. Also in the NCS they have a 20% wi in the 100mm bbl Trow prospect. In the UKNS Revus has a 50% interest in Torphins a 30mm bbl prospect which neighbors the 10mm bbl Scolty discovery where they also have 50% theough Palace. They list the COS at 50% for Torphins. UKNS barrels and production are huge windfall for a NCS company because of the tax rate differentials, 50% vs 78%. I figure NCS production has a fair value of 2.5 times C/F at $80 oil so new NCS production is still very valuable for a small cap. I figure every 10k bpd of NCS production could double their market cap. With Yme on line next year and not priced into the stock you have a good catalyst to move the shares up. In all they must have 30k bpd plus in the development line up.