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here is a write up on the co i am not in this but i have been following it
OMDA Oil and Gas, Inc. Gives Drilling and Prospect Update Also Introduces New Company Shareholder Awareness Program Aug 26, 2005 7:30:00 AM 2005 PrimeZone Media Network HOUSTON, Aug. 25, 2005 (PRIMEZONE) -- OMDA Oil and Gas, Inc. (Pink Sheets:OMOG), an oil and gas production company, through its Chairman, Adam Barnett, presents the latest drilling and prospect update to shareholders and potential shareholders. Additionally, the company announces the full implementation of its shareholder awareness program. This program includes quarterly letters from the Chairman, drilling project updates, legal updates with filings and other information regarding the multi-million-dollar lawsuit against prior management, as well as a weekly newsletter keeping shareholders and others current on all important matters. These weekly newsletters include timely information regarding shareholder questions, drilling updates, and stock information. Every issue also publishes the total outstanding shares of the company stock and the name and phone number of the transfer agent. The Company encourages all shareholders and prospective shareholders to visit the company website to view the archives of all past letters, issues and filings. The Company also encourages all interested parties to subscribe to the company's e-mail alerts at http://www.omogoil.com .
Adam Barnett, Chairman of OMDA Oil & Gas, stated, "With oil now reaching record highs of over $67 a barrel, natural gas exceeding $10 per thousand cubic foot, and competition for prime drilling acreage at record levels, I believe that OMDA Oil and Gas is in an excellent position to fully capitalize on the situation. To give a clear report on the state of the company, I offer the following updates."
Drilling Update and Prospects
OMDA is extremely confident, as can be seen by documentation on the legal link of the company's website, that it will prevail in its litigation against the company's former officers and directors. A successful legal battle could add in excess of 350 primarily stripper type wells and as much as $36 million in damages. We have already begun to reap rewards from these legal pursuits as exemplified by our recovery of the Concord Dome Project. Even without these legal proceedings, OMDA's past financing and investment activities has positioned the company ahead of many other emerging exploration and production entities. Many of these other companies do not have the funding or resources that we currently possess even though they may have higher market caps.
One of the major challenges facing emerging producers today is the need to acquire a diversified portfolio of prime drilling prospects even though the cost of these prospects continues to skyrocket. While other small independent oil companies are focused on small projects with single well participation, OMDA currently owns and/or participates in the following:
1) A Joint Venture with Young Oil (YJV), the largest producer in Tennessee. Over the past few weeks, the YJV appears to have discovered three multi-zone natural gas wells. These wells have been drilled, logged and temporarily shut in while awaiting an acidizing and testing crew early next week. Flow results will be reported at that time. A gas pipeline for these wells was completed last week and upon successful completion, sales will begin immediately. OMDA has a fully paid 20% interest in these three wells, and has a right of first refusal to participate in all future wells in Young's 46,000-acre lease inventory.
2) Patroon Prospect, Shelby County TX. OMDA has a paid up 15% turnkey interest in this 800-acre Joint Venture with Texas Land & Production Company (TLP). This exciting lower risk 6,000 ft wildcat well is an offset to a 1946 Humble Oil wildcat that was tested in two Mooringsport zones. The lower zone at 5272'-5290' tested at 1,758 mcf/d and 135 barrels of oil per day. Since the nearest gas line was a hundred miles away at that time, this zone was never produced. The next Mooringsport up the hole at 5,164'-5192' tested at 1,204 mcf/d and 109 bopd and was completed and produced for approximately 18 months, totaling around 15,000 barrels of oil while flaring the gas. The well was subsequently abandoned due to the very low price of oil and lack of gas value in 1950. TLP acquired this acreage in 1999 when the price of oil was around $20 bbl and gas prices were around $2.00 mcf. Drilling at that time was almost non-existent in this now hot area. Should the well be successful, an additional 8-9 wells could be drilled on the existing acreage. TLP has informed us that they are negotiating for an acreage swap to double the size of this lease to 1,600 acres. A Third party Petroleum Reservoir Engineering report by TEC estimates recoverable gas reserves per 80 ac. unit of 1.226 Billion Cubic Feet, and oil of 36,000 barrels. If these estimates prove correct, Future Net Revenues could approach $20 million to the 8/8 ths, per 80 acres. These estimates are based on current oil and gas prices.
The drilling permits on this lease have been pulled and site preparation is now complete. The site was recently approved by the drilling contractor: Fran Drilling, Inc. While spudding of this well was originally intended to be several months ago, high demand for rigs and contractors has caused frustrating delays throughout the industry. We have been assured by the contractor that we are next in the queue after his current drilling project. We expect to see this well spudded in the next few weeks. It will then take two additional weeks to drill and test.
3) Concord Dome. Andersen County TX. This 12-well re-completion play was earned by OMDA as a partial settlement of the above mentioned lawsuit. Depending on the outcome of this lawsuit, OMDA will own a fully carried (paid) interest between a minimum of 7.5% and a maximum of 37.5%. To date, over $1.2 million has been spent by the settling partners. The managing partner has reported to OMDA that he estimates that 1.1 million barrels of recoverable oil is still in place. Also, this settlement gives OMDA a right of first refusal to participate, up to 37.5%, in all new offset locations in addition to the original 12 wells. This right is guaranteed regardless of the outcome of our legal proceedings. Within the next week to ten days, the managing partner will be releasing a full update and anticipated production schedule.
4) Panola Fredericksburg Lease, Panola Count, TX. OMDA currently owns a 100% paying interest and a 75% working interest in this exciting 1,113-acre horizontal Fredericksburg play. This was OMDA's first lease acquisition, which was acquired when oil was at half its current price. Due to the high cost ($8 to $10 million) to develop this play, we have been patiently waiting as its value mounts. Based on outside interest in this play, it is likely that OMDA will farm out this project and retain a carried interest.
Adam Barnett stated, "I want to apologize for the length of this press release, but as you read in our most recent weekly newsletter, I am not one for just putting out insignificant news releases. I felt it was truly important to inform the public of all details regarding our most recent activities." Chairman Barnett went on to say, "I cannot thank our loyal shareholders enough for the patience that they have exhibited during these last two years. Transforming OMDA into a transparent, reputable, and growing company has been a long and arduous task, but I believe we will be rewarded in the future for all this hard work. With the above mentioned paid up projects, effectively no debt, and an excellent chance of a major recovery from our Lawsuit, the future of our company could not be brighter."
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc, Texas OMDA Drilling & Operating, Inc., and OMDA Oil & Gas, Inc. (Texas) are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47% in 355 producing and non-producing oil and gas wells in Louisiana and Texas, as well as 100% gross interest in an undeveloped 1,116-acre, horizontal play in the Panola Field, Panola County, Texas. Current projects include a 15% working interest in an 800+ acre play in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12-well workover play in the Concorde Dome Field in Andersen County, TX. The company is also currently partnered with Young Oil Corp., the largest Oil and Gas producer in Tennessee, on 46,000 acres in North Central Tennessee with an initial 20% interest in a six-well program and a first right of refusal on any other prospects on the Young leases.
This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
CONTACT: OMDA Oil and Gas, Inc. Investor Relations 800-621-0113 IR@OMOGOIL.COM www.omogoil.comPosts: 6008 | From: phoenix az | Registered: Mar 2005
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many oil and gas stocks are worth getting into RIGHT NOW.
AMEP DD Oil and Gas for new eyes... Devon is by far my favorite energy company. It is a solid energy company, with great Barnett Shale natural gas(NG) production and reserves. The problem for me is that Devon (DVN) is $57.68 per share. A bit pricy for me, and the company is already a mature company. I had been looking for a high risk/reward speculative Oil and Natural Gas investment with high reserves in the Barnett Shale, like AMEP, that has much room to grow, and grow the SP, currently at .0145. The reason I like Devon so much is that it is the biggest player in the Barnett Shale formation, they bought out Mitchell Energy, which pioneered the slick water frac technique that was able to make the tight Barnett Shale produce in volume. The Barnett Shale was just recently declared the largest on shore hydrocarbon source and reserves of NG in the US by the independent USGS, a federal agency; and the formation is mostly all in Texas(domestic, and therefore safe). Since that USGS report, the lease price has exploded all over the Barnett. They are now drilling inside the city limits of Ft Worth, because the formation is so prolific in NG, and produce for decades. It is the hottest formation in the US, on shore. I am invested in AMEP, and AMEP is a high risk/reward investment with 7,000 acres over the Barnett Formation. I have been accumulating shares for over a year now. Like BIPH, ABEW, and HISC, I still have every share of AMEP I have bought so far. I trade other stocks to pay the bills, ...but not these four. I have a multi-bagger going on all these but AMEP, I believe AMEP will be the next to run. AMEP technically made the Golden 50/200 MA Cross recently. and has bounced off the 200MA four times since. I think it is now ready to move up. Last time AMEP made the 50/200 MA crossing it was a 9 bagger while buying leases, since has retreated,...but now has Oil and Natural Gas revenues that are increasing. AMEP is a Business Development Company (BDC), and has 4 wholly owned investess in the energy business. One of AMEP's wholly owned investees, Bend Arch inc, has 7,000 acres that are a 100% blanket coverage over the Barnett, that is well over a 300 foot thick formation throughout the leases. The beauty of AMEP's Barnett leases, is that they were acquired before the land rush, and were obtained relatively cheap. They own miles of NG sales and collection pipelines. Another important advantage to these leases is that they produce Oil with the NG, while most Barnett Shale gas wells only produce NG. Unlike most formations which have a relative short production life, the Barnett Shale wells are expected to produce 20 to 30 years, or more, per the independent DD, USGS, and including Devon's statements, because the formation is so vast in size and thickness, and it is THE source rock for the hydrocarbons. They return to near original production when re-fraced, per the DD. Below is the recent announcement by AMEP on the results of a vertical well drilled down into the Barnett, AMEP is following this well up with 2 100% NWI horizontal wells, that will be cheaply done because the wells are re-entries and will be deepened into the Barnett formation and go horizontal from there; horizontal wells typically produce a multiple of a vertical in the same formation:
MINERAL WELLS, Texas--(BUSINESS WIRE)--Aug. 2, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. began re-start operations of a uni-draulics jet pump on the Nash 1-C Barnett Shale well. Charles Bitters, President of American Energy Production Inc. stated, "Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Friday, July 29, after exchanging the complete down hole jet assembly and production tubing. The Nash 1-C is still not stabilized but on Monday August 1, the well produced in excess of 20 barrels of high gravity oil and 100,000/cubic feet of natural gas. At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue[NOTE, NG is now over $10 for NOV, DEC, JAN, FEB, MAR, ...and rising; apply that figure to this announcement]. This will add a very nice piece to the Bend Arch Production Inc. income. The company will post more results once the well has a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well." The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the well bore faster and more efficiently than the conventional pumping unit. Charles Bitters also stated, "Bend Arch Petroleum Inc. has accumulated over 7,000 acres of leases that have potential Barnett Shale production. Oil America Group Inc. of Dallas, Texas another 100% owned investee of AMEP plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. Oil America Group Inc. will begin offering these partnerships in the next two weeks. For more information contact Joe Christopher at Oil America Group Inc."
AMEP has 100% Net working Interest(NWI) on this vertical well, and 100% NWI the next two horizontals that will follow. OAG, another 100% wholly owned investee, is raising funds to drill 3 more horizontals behind Bend Arch's two horizontals. AMEP gets a no cost free ride on OAG's 3 horizontal wells, and will receive 25% NWI after the drilling costs are paid. Keep in mind that these wells produce for 20-30 years or more, so it is a very good deal for AMEP, IMHO, ...and no risk to AMEP shareholders. AMEP has a total of 5 potentially high producing horizontal wells scheduled for drilling into the Barnett. Another 100% wholly owned investee PRI, has 193 heavy oil wells with working pumps, that are being re-worked and treated to increase the heavy oil flow, and brought back into production. These wells and lease were obtained when oil was real cheap, ... and now it is not. Only a few wells have been re-worked so far, a big potential when the entire field has been re-worked, treated, and pumping oil into the tanks for sales. PRI has just announced that they have developed their treatment, and are now ready to expand the operation. At todays prices, these 193 wells will be nice revenue generators:
"American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800 Wednesday July 6, 8:01 am ET MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days. Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results." Management cannot discuss the details and/or formulations being used with AMEP HOA-800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results. Update to investors. Also on June 28, 2005 AMEP announced that wholly owned investee Bend Arch Petroleum Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project. This well could be our most significant to date and a major milestone for the company due to the 1000 to 1500 horizontal lateral line that will be drilled in the Barnett Shale. In most scenarios a horizontal well will produce more oil and natural gas than a vertical well. The Company is extremely excited about the potential for this Barnett Shale well. Bend Arch Petroleum is in a great position to benefit from record high prices for oil and natural gas prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production."
The CEO has stated in writing, that he expects AMEP to become profitable in less than a year now. It appears that Bend Arch will be able to do that alone if the next two 100% NWI horizontal wells are successful. Since they are over a 100% blanket coverage, and because the vertical NASH 1-c Barnett well was so successful, these horizontals are expected to be high producers. 100% Wholly owned Bend Arch will have to cut AMEP a profit check, for AMEP to show a profit, ...and I believe they will be able to do just that after the next two horizontals are completed and producing. IT IS IMPORTANT TO NOTE, AMEP wholly owned investees are shareholders of AMEP, they were acquired with AMEP shares, so it is extemely important to the investees to make AMEP profitable, and increase the SP. All wholly owned AMEP investees are working hard to do just that. Wholly owned PRI, should be able to follow Bend Arch with a profit check sometime in the future, if the re-work program continues to succeed, and expand to all the other wells (note some of the 193 wells will be used to inject the treatment, and therefore will not be producers). I think energy prices are not going to retreat to the $30 bbl range, and that energy will be an important play in the stock markets for decades to come. IMVHO, Devon (DVN) for a safe investment in the Barnett; and AMEP for a high risk/reward investment in the Barnett. Based on recent AMEP developments, and the CEO's quest to make AMEP profitable in less than a year, I think it is now tilted towards high reward, in the high risk/reward category. AMEP's tiny Market Cap of only 4.3 Million$$, is less value than one of Bend Arch's leases and production, IMVHO. Good luck in what ever you decide, and if you want to play it safe, buy Devon; but if you have some high risk/reward funds, check out AMEP.
Disclosure, long holds: BIPH(overweight), ABEW, HISC, and AMEP. I have a multi-bagger going on all these but AMEP, AMEP is next IMVHO. ... %^ greeneyedhawk
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Natural Gas, 11.78 up 1.99, OMOG has three gas wells drilled awaiting completion this week as per the Friday PR. And a whole lot of more acrege to drill. Talk about perfect timing.
"1) A Joint Venture with Young Oil (YJV), the largest producer in Tennessee. Over the past few weeks, the YJV appears to have discovered three multi-zone natural gas wells. These wells have been drilled, logged and temporarily shut in while awaiting an acidizing and testing crew early next week. Flow results will be reported at that time. A gas pipeline for these wells was completed last week and upon successful completion, sales will begin immediately. OMDA has a fully paid 20% interest in these three wells, and has a right of first refusal to participate in all future wells in Young's 46,000-acre lease inventory."
Posts: 4 | Registered: May 2004
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OMDA Oil and Gas, Inc. Announces Completion Attempt Underway on Natural Gas Wells
Also Provides Update on Potential Oil and Gas Joint Ventures
HOUSTON, Sept. 7, 2005, Sep 7, 2005 (PRIMEZONE via COMTEX) -- OMDA Oil and Gas, Inc. (Pink Sheets:OMOG), an oil and gas production company announces, as anticipated in yesterday's newsletter, that the service and completion rig and crew have now arrived on location at the Young Oil Project in Tennessee. This rig and crew will begin operations this week on the first three drilled and logged gas wells. Results from analysis of "cuttings" during drilling and subsequent electronic logging have indicated commercial quantities of natural gas in up to three zones in two of the wells and two zones in the third well. The common zones in all three are the Fort Payne and the Monteagle. The logs indicate that there is a combined excess of 40 feet of primary pay thickness in each well. Completion attempts in these two zones will be conducted in the traditional manner, which will involve cleaning and stimulating the wells with acid, testing the wells, and ultimately tying them into the recently completed area pipeline. Additionally, two of the wells show large sections of a natural gas-bearing shale. This type of shale would historically indicate a "tight" non-commercial zone; however, due to high natural gas prices, these types of zones have recently proven successful and have been commercially exploited using relatively expensive modern "fracing" techniques. Once the Fort Payne and Monteagle are fully tested, the partners are considering completion attempts in the immensely thick shale layer of the wells. It is currently anticipated that the rig and crew will stimulate and attempt completion in the two primary zones of each of the three wells. This process will be completed over the next week to 10 days. As each well is completed, results will be published either in the company's weekly newsletter or by press release. More information about the 46,000-acre Young Oil Project including pictures and videos can be found on the Company website in both the "Projects" and "Investor Information" sections. The web address is http://www.omogoil.com.
The company also announces a preliminary joint venture update. The company is actively pursuing additional joint venture opportunities with several oil and gas companies in the United States and Canada. OMDA Oil and Gas has spent the past several months in meetings and negotiations bringing these potential partnerships to near fruition. These joint ventures will include partnerships in producing and non-producing wells. OMDA will also have right of first refusal on some of these companies' top prospects, as well as any subsequent acreage that may be added at a later date.
Adam Barnett, chairman of OMDA Oil and Gas, stated, "With the completion rigs at the Young Oil well sites and with the huge potential of our other projects, I could not be more excited about OMDA's future. I believe that some of OMDA's most exciting current projects center around their heavy natural gas exposure. These include the above-mentioned Young Oil Project, as well as our extremely exciting Patroon prospect. Patroon's third party Reservoir Engineering Reserve reports indicate that 80 percent% of the massive potentially recoverable reserves are gas. We are scheduled to begin drilling the Patroon project over the next few weeks. Natural gas prospects have been considered almost the industry's 'step child' in regards to investor thinking. This attitude is rapidly changing; however, as importing natural gas from places such as the Mid-East grows more and more expensive. It is also important to understand the potential of gas prices in the face of impending shortages due to the fact that there is no natural gas equivalent of the 'Strategic Petroleum Reserve.' These price rises can currently be witnessed by the recent anomaly of a reversal of BTU equivalent pricing of natural gas versus oil. Oil has historically traded as high as a 30 percent premium to natural gas using the traditional 6,000 BTU of gas to one barrel of oil formula. At the current pricing of $12 per thousand BTU (or MCF approximate equivalent), gas is now valued at $72 per barrel of oil equivalent."
Barnett went on to say, "As I have stated many times, we can not become complacent. We must always explore other deals and investigate possible joint ventures. The management teams of the prospective joint ventures mentioned above have already shown bold interest in working with OMDA on some of our current projects. We are also enthusiastic about participating in these companies' endeavors, which could include several producing wells in the Texas area." Barnett added, "I believe the time-line for the launch of at least one of these joint ventures could be as soon as late next month. We are currently performing the necessary due diligence concerning their current and future projects, while allowing them to fully understand the vast opportunity here at OMDA. We are very excited about diversifying our revenue streams and harvesting these untapped oil and gas opportunities. Even though these partnerships are in the preliminary stages, I felt it important to share their progress with our shareholders. It is important to understand that OMDA is consistently searching for beneficial and profitable projects, and we believe that these opportunities, combined with our own projects, will make the next few months the most exciting and productive in the company's history."
Posts: 52 | From: St. Augustine, Fl. | Registered: Aug 2005
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