This is a small US company that has a 35% interest in a massive oil field in Russia. They currently only trade on the Canadian Venture Exchange, but have filed with the SEC to trade on the US OTCBB. Approval to trade in the US should be coming any day now.
On 12/00 Teton had 8.5 mmbo of oil reserves, with an SEC PV10 value of $42 M. They have about 30 M shares out and the stock is currently trading at about US$.40. Obviously the stock is immensely undervalued.
One reason for the huge discount to the SEC PV10 value of the reserves is that only 1.3 mmbo of the 8.5 mmbo of total proved reserves were producing as of 12/00. Teton has drilled 2 more wells now and is expected to announce the production test results shortly. 4 more wells are expected over the next 4-5 months. The wells are all financed.
Would appreciate any comments on Teton or Russian oil plays in general. |
