REASONS THIS STOCK COULD SOAR WHEN OIL PRICES SPIKE 50 - 100%

  • The company was founded by a former Exxon Mobil president responsible for 300,000 barrels of production a day (BOPD).
  • Management has invested over $1.5 MILLION in establishing the corporate structure, refining acquisition parameters and developing the current deal pipeline.
  • Current production averages 1133 barrels of oil per month (BOPM) representing 950,000 BO proved / probable reserves. This project is estimated to do 3400 BOPM after rework.
  • Proven and probable (2P) reserves associated with their Louisiana assets have a discounted present value (PV10) of $41,245,950 as of a March 1, 2011 reserve summary prepared by management, indicating attractive potential for growth.
  • Closed bridge financing for $150,000 and went public in 2011.
  • Plans to acquire over 1,500 acres with over 59 shut-in wells and 30 producing wells with 40 BOPD of current production, which will do 200 BOPD with minimal rework representing 2.1 MILLION barrels of proven reserves. A preliminary agreement has already been secured.
  • Plans to acquire and develop $200 MILLION in proven reserves.

Wednesday, July 20, 2011

PetroHawk- BHP Deal Highlights Domestic Gas Producers

Energy stocks got a double boost Friday, as oil gained 2% andPetrohawk Energy (HK) announced a $12.1 billion takeover bid from Australian mining giant BHP Billiton (BHP).
Oil swung due to a soft dollar, climbing back above $97 a barrel.
Petrohawk, part of the Oil & Gas - U.S. Explorers and Producers industry group, screamed ahead 63% after BHP's all-cash offer.
The deal revolves around Petrohawk's shale-play acreage — 1 million acres in Texas and Louisiana. The move builds on BHP's $4.5 billion deal in February for shale gas leases in Arkansas owned byChesapeake Energy (CHK).
BHP forecast the Petrohawk assets would allow it to expand its oil and gas production by 10% per year through the next decade.
Shares of a number of other U.S. explorers and producers surged higher after the announcement. Most, such as Gasco Energy (GSX) and Royale Energy (ROYL), are laggards.
Former leader Range Resources (RRC) gapped up to a 12% gain, breaking out of a 14-week base. But the company's EPS Rating is a paltry 25. An EPS gain in the the first quarter was its first after nine straight quarterly declines.
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