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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (40962)	7/27/2011 3:17:11 PM
From: E_K_S	Read Replies (2) \| Respond to of 78467

Re: Magellan Petroleum Corporation (MPET) Doubled up on my MPET. Today's buy represents a 15% discount to my original buy on 11/9/2010. Two new "positive" developments (w/i the last 10 days) by the company have occurred: On Monday July 18, 2011 - VAALCO Energy signs LOI to acquire additional Bakken acreage ( finance.yahoo.com ).This is a deal where VAALCO (EGY) has paid for a 65% interest to develop a portion of MPET's Bakken acreage (23K acres). The cost is estimated to be approx $5M/well at VAALCO's expense. On Monday July 25, 2011 - MPET announced that they unwound their deal with Santos and will receive $10 million to terminate the previous Asset sales deed. ( finance.yahoo.com ). The parties could not agree on the potential development terms. The cash is good since there are plenty of other projects to spend it on (ie like on their Bakken proprieties). The net result of the two announcements provides the company w/ $10M cash (about $0.19/share) and several new wells under development (through 2012) on MPET's Bakken shale property. Here is a good article on VAALCO (EGY) and where they are drilling. The company is cash flow positive, no debt and sells at 9PE. blogs.forbes.com Vaalco Energy Inc. (EGY) together with its subsidiaries, engages in the acquisition, exploration, development, and production of crude oil and natural gas. The company owns producing properties and conducts exploration activities as an operator of consortiums internationally in Gabon and Angola; and as a non-operator in the British North Sea. It also has interests onshore in Texas and Alabama; and in the offshore Texas and Louisiana Gulf Coast area. The company owns a 30.35% interest in the exploration acreage within the Etame Marin block; a 28.1% interest in the development areas surrounding the Etame, Avouma, South Tchibala, and Ebouri fields; interests in Mutamba Iroru block onshore Gabon; a 40% working interest in approximately 1.4 million acre Block 5 offshore, Angola; and a 70% working interest in 5,214 acres in Sheridan County, Montana. VAALCO Energy, Inc. was founded in 1984 and is headquartered in Houston, Texas. finance.yahoo.com ---------------------------------------------------------------------------------------- I really do not like EGY's foreign exposure so MPET (to me) is a better pure play on their Bakken. Good observation back in 10/2010 on MPET and their 28,000 Bakken acreage they owned. EKS