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

To: Ed Ajootian who wrote (100831)	5/17/2008 3:16:30 PM
From: Ed Ajootian	Read Replies (3) \| Respond to of 206085

Endeavour International (END) -- Here is a link to the END presentation at Tristone, webexcomm.vo.llnwd.net . They now have 2 rigs going, the one already announced late April, Galtvort, and although they didn't specify the other one, its probably the next one in the cue, Noatun C. They only have a 2.5% interest in that well but Exxon Mobil considered it worth their while to take 20% of that well, so the target must be pretty significant. Also, that well could have a near-term impact on production, since its very close to END's Njord field, which is already on production. They also have indicated that first production is expected from both their Cygnus and their Rubie Sele fields next year. This is great news, since it would seem likely that they will be able to move the reserves associated with these discoveries from probable to proved at the end of this year. These reserves will probably be enough to replace the entire production for this year. Depending on how soon Serica can get the field development plan filed for Columbus, those reserves might also be considered as proved reserves at the end of this year. According to the slide showing the timelines of the wells, it looks like the Galtvort results could be known as little as 3 weeks from now. This well is targeting reserves that could increase END's total proved reserves by about 80%. With both oil & UK gas prices going so nutty this quarter, the company will probably generate something like $45 M of cash flow this quarter, which puts the stock price at just a tad higher than the amount of cash the company will generate this quarter on an annualized basis. So even though the stock is trading at price only a few pennies less than its 11 month high, I believe it still represents one of the better values in the E&P space.