posted
Good news out on tuesday, check press release. Plus they will release earnings guidance for 2006 on thursday october 13th 2005. Looks like things are picking up for this oil and natural gas play. One to keep a eye on.
Posts: 28 | Registered: Oct 2005
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TORONTO, Oct 13, 2005 (PRIMEZONE via COMTEX) -- Biogenerics Limited (Pink Sheets:BIGN) announces its 2006 target for earnings to hit 8.5 cents per share EBITDA.
The Grimes, Calif. well was successfully reopened after a 20-year shut-in in June using Hydroslotter's new advanced recovery technology and has produced 14.4 million cubic feet of natural gas (14,400 MCF), which was sold for an average price of $10.00 per MCF for the month of September. Pacific Gas & Electric will release the official September figures in mid-October, which are expected to vary from the unofficial figures by a fraction of a percent.
Biogenerics joint venture activities with WW Energy Inc.'s Exploitation projects are on track and progressing, and the company anticipates the updates on the potential benefits by year end.
"We're excited about the potential of the Hydroslotting technology and the joint venture projects that we are involved in and expect to have a concise earnings expectation by year end," stated Paul Smith, president of Biogenerics Limited. "Given the current demand for oil and natural gas, we feel comfortable in our capital expenditures targeting those areas with the greatest potential of return for our shareholders."
About Biogenerics Limited
Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics has oil and gas assets acquired from Rubicon Petroleum. The company also has joint venture activities with Tyche Energy, Hydroslotter Corporation and WW Energy Inc.
About Hydroslotter Corporation
Hydroslotter Corporation's proprietary technology, deemed "hydroslotting," increases oil and gas production and extends commercial productivity of oil and gas by 300 percent to 600 percent. Hydroslotter's technology is cost effective and, for the inexpensive cost of the actual re-work on potential shut-in wells, the return on investment is high.
A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions, and the ability to secure additional sources of financing. The actual results of Biogenerics Limited may achieve could differ materially from any forward- looking statements due to such risks and uncertainties, including but not limited to, the fact that no assurance can be given that any proposed acquisitions will be consummated at all.
10/14/05 Biogenerics Limited (Pink Sheets: BIGN - http://finance.yahoo.com/q?s=BIGN.PK ) Biogenerics Limited, with its joint venture partner Hydroslotter Corporation, are forecasting a minimum 120 wells to be slotted in 2006.
The cost of slotting these projected wells weighs in at approximately US$200,000 per well. With economies of scale, we can reduce those costs. Given that the estimated slotting cost is returned in 30 days, the cash flow outlay to grow is minimal.
For example: The current Grimes, Calif. well, now in production, is forecasted to have a life of 5-10 years. Four additional wells are being slotted in conjunction with the Grimes, each at 5-10 years. The costs and time to slot four wells is 10 to 14 days and will have a 25% reduction in outsourced service charges.
We expect each of our five wells to be tied into the same meter site and expect combined flow at 2,500,000 MCF.
The projected cash flow will cover expenses in 30 days. We then receive net 40% of the flow after costs are repaid. That would register at US$10,000 per day.
Upon each of the forecasted 120 wells in full production, in conjunction with alternate wells coming on stream in 2005, we will have a daily cash flow of US$240,000.
Ultimately, these wells will produce US$87,600,000 annually.
For the reason that we are not slotting all available wells, in week one after costs, we expect US$43,200,000.00 in profits for 2006 from the Hydroslotted wells.
Our strategy suggests 10 new wells per month in 2006. In 2007 we expect to double that to 20 wells per month.
Bearing in mind that when dealing with the oil and gas sector, delays may occur, prices may fluctuate, and thereby management accounted for the risk factor discounting the guidance by a factor of 35%.
Biogenerics does not forecast earnings from the New Mexico joint venture in this forecast because it is currently unquantifiable.
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