Leading Petroleum Engineering firm reports GASCO ENERGY's unrisked future net
revenues of $2.4 billion from Utah wells alone. Analyst forecasts $14.80/share
Gasco Energy Inc. is an oil & gas company whose natural gas properties could
potentially begin producing in the billion-dollar range, but is still trading
Recently, Gasco Energy's (OTCBB: GASE) properties and future revenues in Utah
were independently evaluated and estimated by Netherland, Sewell & Associates
(NSAI) - a 40-year-old international petroleum consulting firm. NSAI
(www.netherlandsewell.com) has worked with hundreds of top financial
institutions from Bank of America to Credit Suisse as well as major oil and
gas companies from Exxon to Shell.
The report states that the estimated unrisked future net revenue on GASE's
interest will most likely produce $2.42 BILLION!! Please note that the report
discusses NET revenues, which are calculated by deducting state production and
ad valorem taxes, operating expenses and ALL future capital costs from the
gross revenues. While these are net revenues, as opposed to net income, this
can mean great news for GASE's existing and future shareholders!
In evaluating probabilities of occurrence, NSAI's report states "there is very
little risk of not encountering gas in this basin-centered gas accumulation".
In fact according to NSAI, the property's most likely present worth is $242
million discounted at 10% based on average NYMEX prices for the period 09/00
to 08/02. Wellhead prices used in the report are $3.56 per MMBtu, escalated 3%
per year to a maximum of $4.15 per MMBtu.
Foremost among GASE's strategic partnerships is GASE's agreement with Phillips
Petroleum (NYSE:P). GASE and Phillips have been working to maximize
shareholder value on the Utah properties. GASE has also teamed with
Halliburton Co. (NYSE:HAL) to potentially drill and complete up to 10 wells
within the same area.
IN ADDITION to the interest in Utah properties, GASE also recently reported
that it has teamed up with Burlington Resources (NYSE: BR) - one of the
world's largest independent oil and gas companies - to explore and develop a
series of natural gas plays in Wyoming. This significantly enlarges GASE's
land mass, which may further increase the company's net present worth!!
According to the U. S. Geological Survey, the Greater Green River Basin has
produced more than 7.3 trillion cubic feet of natural gas and 849 million
barrels of oil, making it one of the country's truly significant oil and gas
fields. Burlington Resources is the perfect partner to help develop the many
highly fractured, tight-gas-sands prospects the companies expect to find
there.
OPPORTUNITY:
Based on GASE's recoverable resources, property's present worth and industry
partnerships London based Canaccord Capital recently issued an Investment
report estimating the value of Gasco's licenses to be $740 Million, or $14.80
per share.
Despite all the recent developments, the company's stock is still trading
below $3. Many consider this to be ridiculously low, considering that NSAI
estimates future net revenues of up to $2.4 billion and unrisked present worth
at $242 million. With its high probability Utah stake AND its Wyoming
partnership with Burlington, GASE is now diversified AND showing huge growth
potential!
BILLION DOLLAR QUESTION:
How quickly will GASE's stock price start to reflect its real value? As the
company is still trading on the OTCBB, maybe it hasn't been able to attract
institutional investors who price stocks based on their real value. When they
learn about the recent developments, GASE's valuation could potentially change
overnight!
URGENT!
With an application for listing pending and the type of assets GASE possesses,
it may be only a matter of time before the company jumps to Amex. That would
open a lot of doors for GASE and potentially explode the demand for GASE stock
and lead to a much higher valuation! What will GASE be trading at by then?
Schöner Pushversuch....
Gruß Dr. Broemme
