|
New Focus Stock:
EnDevCo,
Inc. (ENDE)
The Energy
Development Company
With
oil consistently trading at record highs,
EnDevCo (ENDE) could be a compelling play.
Currently
Trading at approximately $0.06 per share
Website:
www.endevcoinc.com
Profile:
EnDevCo, Inc. a
shortened version of the Energy Development Company.
EnDevCo is a dynamic and growing energy company whose
business plan includes strategies to participate in
several sectors of the natural resources industry:
- Oil and gas
exploration and production
- Development of new
technologies for the enhancement of oil and gas
production
- Merchant power and
integrated industrial site development.
EnDevCo is founded on
the principle that the sensible application of
"state of the art" geoscience technologies
provides a profound reduction in the risk profile that
accompanies all investment in oil and gas exploration
and production. In pursuit of this principle, the
Company has adopted an attitude that can be
encapsulated in the statement "...science before
the drill bit."
EnDevCo, Inc. is
committed to environmentally sound business practices
in the development of oil and gas resources and power
generation.
ENDE
Investor Highlights:
- ENDE has announced a
farm-in agreement which currently provides for a
50% working interest in all prospects above 6,000
feet on Eugene Island Block 294 in the Gulf of
Mexico. The offshore platform and production
facilities are located in 205 feet of water and
are currently producing approximately 11 million
cubic feet per day of natural gas. All necessary
facilities and pipeline connections are in place
to handle up to an additional 20 million cubic
feet of gas per day. Recent evaluation of 3D
seismic data has defined an additional 16.2
billion cubic feet (Bcf) of low risk, recoverable
gas reserves that can be produced by drilling
three new wells which will be tied back to the
"A" platform.
- ENDE has negotiated
an agreement to purchase fourteen (14) wells
drilled in Okfuskee County, Oklahoma. The wells
contain recoverable gas reserves located in
shallow Pennsylvanian sandstone reservoirs on the
Cherokee Platform of Central Oklahoma.
- Purchased an
undeveloped leasehold totaling 14,600 acres and a
small pipeline company which services that
leasehold. The undrilled leasehold is located in
Okfuskee and Hughes Counties and represents
several contiguous areas, suitable to support a
large scale, unconventional gas development
project.
- The Company holds an
option to participate in an undivided 50% interest
of all rights held by Harvest Production Company,
LLC in the Rio Magdalena Association Contract. The
Rio Magdalena Association Contract, comprising
58,546 hectares (144,600 acres) is situated in the
Upper Magdalena River region of Colombia and is
operated by Argosy Energy International. Argosy
has completed acquisition and processing of 101
kilometers of 2D seismic data which has confirmed
several large structural prospects on the block.
- ENDE is working with
a privately held horizontal drilling contractor
that has developed patented techniques for
drilling horizontal multilateral holes using under
balanced drilling fluid technology. It is
anticipated that by utilizing these "state of
the art" technologies, drilling and
completion costs over a typical 640 acre lease may
be lowered by 60% while a typical individual well
production rate may increase from 350 mcf/day to
the range of 3,000 mcf/day.
Upside
Potential
While still considered
an emerging play concept, the Caney shale represents
extraordinary upside potential for EnDevCo. Based on
the analogous Barnett shale play, a single square mile
of leasehold (640 acres) may contain 100 Bcf of
in-place gas reserves. However, the key commercial
question remains-how much of this gas in-place can be
recovered and at what cost?
Current development
practices by Devon in the Barnett shale involve
drilling vertical wells on 40 acre units (16 wells per
square mile). Once wells are drilled, production is
substantially improved by creating artificial fracture
systems in the shale through the use of high pressure
surface pumping techniques known as hydraulic
fracturing. Once the frac job is implemented, the well
production undergoes an initial steep 30% decline
during the first year then declines on an annual rate
of approximately 10% per year thereafter, yielding a
primary produced gas volume of 1.25 bcf (billion cubic
feet) of gas. After the production rate falls below a
specified economic threshold (usually after a five
year timeframe), Operators are subjecting the well to
another frac treatment which has been shown to return
the well to its original daily production rate.
Thereafter the well can be produced through a full
second cycle, experiencing a similar decline profile
for an additional five years, yielding an additional
700 mmcf (million cubic feet) of produced gas.
In some instances,
wells in the Barnett Shale play have been subjected to
as many as four separate frac treatments, and in most
cases, the wells have returned to their initial rates
of production. Current indications from information
publicly released by Devon for wells drilled in the
Barnett shale play indicate that approximately 5% of
the original gas in place is produced following each
fracture treatment. Assuming that a given well can be
subjected to re-frac a maximum of 4 times, this yields
an overall 18-20% recovery rate of the original gas
reserves in-place.
For the full profile
including Management and Charts, please visit http://www.smallcapreview.com/ende,htm
FORWARD
LOOKING STATEMENTS
This report
includes certain "forward-looking
statements". The forward-looking statements
reflect the beliefs, expectations, objectives, and
goals of EnDevCo, Inc. management with respect to
future events and financial performance. They are
based on assumptions and estimates, which are believed
reasonable at the time such statements are made.
However, actual results could differ materially from
anticipated results. Important factors that may impact
actual results include, but are not limited to
commodity prices, political developments, legal
decisions, market and economic conditions, industry
competition, the weather, changes in financial markets
and changing legislation and regulations. The
forward-looking statements contained in this report
are intended to qualify for the safe harbor provisions
of Section 21E of the Securities and Exchange Act of
1934, as amended.
Disclaimer
SmallCapReview.com
feature stock reports are intended to be stock ideas,
NOT recommendations. Please do your own research
before investing. It is crucial that you at least look
at current SEC filings and read the latest press
releases. For continuing coverage of ENDE, please sign
up for our free newsletter, SmallCapReview.com News.
Information contained in this report was extracted
from current documents filed with the SEC, the company
web site and other publicly available sources deemed
reliable. For more information see our disclaimer
section, a link of which can be found on our web site.
This document contains forward-looking statements,
particularly as related to the business plans of the
Company, within the meaning of Section 27A of the
Securities Act of 1933 and Sections 21E of the
Securities Exchange Act of 1934, and are subject to
the safe harbor created by these sections. Actual
results may differ materially from the Company's
expectations and estimates. This is an advertisement
for EnDevCo Inc. The purpose of this advertisement,
like any advertising, is to provide coverage and
awareness for the company. The information provided in
this advertisement is not intended for distribution
to, or use by, any person or entity in any
jurisdiction or country where such distribution or use
would be contrary to law or regulation or which would
subject us to any registration requirement within such
jurisdiction or country.
Copyright
SmallCapReview.com. All rights reserved.
SmallCapReview.com is not a Registered Broker/Dealer
or Financial Advisor, nor do we hold ourselves out to
be. All materials presented on our web site and
individual reports released to the public through this
web site, e-mail or any other means of transmission
are not to be regarded as investment advice and
are only for informative purposes. Before making a
purchase or sale of any securities featured on
our web site or mentioned in our reports, we strongly
encourage and recommend consultation with a
registered securities representative. This is not to
be construed as a solicitation or recommendation to
buy or sell securities. As with any stock, companies
we select to profile involve a degree of investment
risk and volatility. Particularly Small-Caps and
OTC-BB stocks. All investors are cautioned that they
may lose all or a portion of their investment if they
decide to make a purchase in any of our profiled
companies. Past performance of our profiled stocks is
not indicative of future results. The accuracy or
completeness of the information on our web site or
within our reports is only as reliable as the sources
they were obtained from. The profile and opinions
expressed herein are expressed as of the date the
profile is posted on site and are subject to change
without notice. No investor should assume that
reliance on the views, opinions or recommendations
contained herein will produce profitable results.
SmallCapReview.com may hold positions in securities
mentioned herein, and may make purchases or sales in
such securities featured on our web site or within our
reports. In order to be in full compliance with the
Securities Act of 1933, Section 17(b),
SmallCapReview.com will disclose in it's disclaimer,
what, if any compensation was received for our
efforts in researching, presenting and disseminating
this information to our subscriber database and
featuring the report on the SmallCapReview.com web
site. SmallCapReview.com has been compensated
seven thousand five hundred dollars by a third party
Media Focus for its efforts in presenting the EnDevCo
profile on its web site and distributing it to its
database of subscribers. SmallCapReview.com may decide
to purchase or sell shares on a voluntary basis in the
open market before, during or after the profiling
period of this report. Information presented on our
web site and within our reports contain "forward
looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Any statements
that express or involve discussions with respect to
predictions, expectations, beliefs, plans,
projections, objectives, goals, assumptions or
future events or performance are not statements of
historical fact and may be "forward looking
statements." Forward looking statements are based
on expectations, estimates and projections at the time
the statements are made that involve a number of risks
and uncertainties which could cause actual results or
events to differ materially from those presently
anticipated. Forward looking statements in this action
may be identified through the use of words such as
???expects??™???, ???will,??? ???anticipates,???
???estimates, ???believes,??? or that by statements
indicating certain actions ???may,??? ???could,??? or
???might??? occur.
THE
READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE
DILIGENCE BEFORE INVESTING IN ANY SECURITIES
MENTIONED. INVESTING IN SMALL CAP SECURITIES IS
SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
We
encourage our readers to invest carefully and read the
investor information available at the web sites of the
Securities and Exchange Commission (SEC) at: http://www.sec.gov
and/or the National Association of Securities Dealers
(NASD) at: http://www.nasd.com
. Readers can review all public filings by
companies at the SEC's EDGAR page. The NASD has
published information on how to invest carefully at
its web site.
|
