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Here is a summary of the properties that MENV has. At the end of it I will show my calculations. It actually seems to me that the shares will reach over $15/share. Maybe somebody can show me if I have made a mistake in my math. If I haven't, then eventually MENV could make a lot of us very rich. Saskatchewan Project MENV has the right to participate in a proposed 50 oil well drill program in the prolific Kerrobert region of Saskatchewan. Micron Enviro Systems, Inc. has received the preliminary flow rates from the operator for the nine wells drilled in Saskatchewan, Canada and all nine wells have discovered oil. Flow rates were as high as 84 barrels of oil a day. All nine wells are currently flowing oil and generating revenue for MENV. The oil is comparable to West Texas No 1. The experience by other oil companies in the area suggests an approximate fifteen year life for the shallow oil wells. Green Ranch Prospect, Stephens County, Texas
The Green Ranch Prospect is a proposed 15 well program consisting of 4,131 acres of leasehold on the Green Ranch in Stephens County, Texas. The primary target formation in this prospect is the Bend Conglomerate at a depth of approximately 4,500 feet. Secondary target formations are Caddo, Rotten Chert, Mississippian and Ellenberger. The region has the combination of relatively shallow depths (2,000-6,000 feet) combined the high producing rates and reserves. In 1997, in the area, First American, with investor money, drilled a well on one of the "bright spots" which Cactus Exploration, using 2-D seismic in a 3-D seismic computer program, which is a common practice, had located, and drilled a well. The well blew out around the surface casing at rates of 10-15 million cubic feet per day. In the Green Ranch Prospect, through the interpretation of the seismic data, several "bright spots" have been identified and are the primary targets of this prospect.
Z1 Well on the Green Ranch Prospect in Texas The Z1 Well is currently producing both oil and gas revenue for MENV. This gas zone tested as high as 797 mcf/d and tested at 1,135 BTU's. Gas sales rates have been up to 250 mcf/d and the oil has been calculated up to 48 barrels per day. A well drilled in 1975 from the conglomerate zone, (the East Green H-2) produced over .95 bcf of gas and 86,500 barrels of oil over its lifetime. MENV is in the midst of planning a sizable multi-well program in an attempt to exploit the formation.
Jack and Palo Pinto, Texas This multi-well project (the Martex Prospect) in Palo Pinto and Jack Counties is primarily a gas project. MENV plans to drill 7 wells in this area and we now have five new oil and gas discoveries on this prospect. One well, the Ima #2 flowed as high as 252 barrels of oil and 701 mcf of gas. One other well, the Henderson #3, flowed at a rate as high as 300 mcf per day without having to frac the well. Another well, the Wimberley #3 was put on line at 125 mcf. We have just recently announced two more wells; the Wimberley #5 and Wimberley #7 which have been put on line for sales. This makes this prospect five for five with two wells remaining to be drilled. These two wells are expected to be completed in 2006.
Athabasca Prospect
Micron Enviro has just recently announced, through its participation in the newly formed oil sand partnership of which Micron has 4.17%, a new oil sands acquisition in the Athabasca Oil Sands region of Alberta. The closest Oil Sands Project is the Whitesands project that is within 2 kilometers to Micron's new Oil Sands project. It has been stated in company news releases that they have reserves of 1.3 billion barrels of oil in place on the Whitesands prospect. The partnership acquired an 80% interest in the prospect.. The Consortium has made a payment of $1,772,500 for the acrage. In the coming months a full seismic program and test wells will be completed to delineate the full size of the reserves and to establish the best location to conduct the test pilot plant. Micron Enviro Systems, Inc. has added three new Alberta Oil Sands leases consisting of 4 new sections in the world-class Athabasca Oil Sands region. Two of these new sections are within 5 miles of Micron's existing Athabasca Oil Sand Prospect. These two new sections are close to the existing Oil Sands leases held by Connacher Oil and Gas's Great Divide Prospect, as well as to other major Oil Sands projects by Devon, Encana, and Cononco Philips.
The other new Alberta Oil Sands lease acquired consists of two contiguous sections that lie just southwest of the announced Royal Dutch Shell Plc Oil Sands leases which they recently purchased for approximately $400 million.
Bernie McDougall, President of Micron stated, "This is absolutely the biggest news Micron has ever had. To participate in the acquisition of four new sections in the most sought after Oil and Gas region of the Alberta Oil Sands has to clearly signal to Micron's shareholders the serious nature of our goal to build the company through the Alberta Oil Sands. Overnight we have increased our land holdings in the Alberta Oil Sands by over 400%. When you look at the caliber of oil and gas companies that our new acreage is close to, you can understand our excitement about Micron's future. Our goal is to become a mid-range oil and gas company and we feel the best way to achieve this goal is via the acquisition and development of the Alberta Oil Sands property.
So it looks like the shale oil properties could contain 2 billion barrels of oil, but lets say that it is only 1 billion barrels. Then 1 billion barrels x $75/barrel of oil = 75 billion dollars. Well, I dropped the # barrels from 2 bil to 1 bil, but it is going to take several years to explore and the develope the infrastructure to extract the oil, and by that time oil will probably be $150/barrel, so our oil sands will then have 150 billion dollars of oil. We have a 4.17% interest in the oil sands and $150 billion x .0417 = $6.25 Billion for our share of the project. We have 378 million shares and so $6.25 Billion/378 million shares = $16.50/share. Oil compannies have PE ratios of 4 or higher, but say our PE ratio = 2x that = $33/share. And we have all the conventional oil and gas properties that will be generating money and so we shouldn't need to issue more shares, which would have thrown off these calculations. But even if I am a tadd off on my calculations, it seems like our share price should be over 5 cents a share. Possibly a lot over that, if we give the company time to develope all our properties
Posts: 580 | Registered: Oct 2003
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posted
I would like to add to the price estimation posted above. STAR GAZER mentioned to check the numbers if we wanted. You are right about the numbers, but I took it a little further in depth. The 6.555 billion in profit is correct, but that is total revenue with no cost of goods sold, or expenses. So I borrowed some estimation from Micro’s big brother Exxon. I took the total operating expenses and COG for the year of 2005. I would like to note that the numbers I use will be gross profit, not net income, this is all an educated guess based on an industry peer. Roughly Exxon made 370 billion in total revenue, and only 20% or $60 billion was gross profit. Estimating today’s price $75 a barrel for 2005, Exxon sold 4.9 billion barrels. So assuming that the 43.7 million barrels would sell in one year, as STAR GAZER stated at $150 a barrel would amount to $6.5 Billion in profit, multiply that by the 20% estimation for gross profit, that equals $1.311 billion in gross profit. Divide that by the shares outstanding of 378 million equals an EPS of 3.47 times a conservative P/E of 2 equals $6.93 a share, or times 4 equals $13.88 a share. No doubt there is room to grow for the company and for us the shareholders; it’s just a matter of time. Like I said this is all estimation as always, but any errors, please correct them.
Posts: 1 | From: Michigan | Registered: Aug 2006
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MICRON ENVIRO SYSTEMS INC: S-8, Sub-Doc 1, Page 13
Our properties have no known reserves of oil and gas. Our securities must be considered highly speculative, generally because of the nature of our business and the early stage as an operating company. We are engaged in the business of exploring and, if warranted, developing commercial reserves of oil and gas. Our properties are without known reserves of oil and gas. Accordingly, we have not realized a profit from our operations to date. We expect to generate revenue from the Kerrobert Project and the Martex Prospect during the 2006 fiscal year, though we cannot predict the amount of revenue that may be generated.
We will not be able to develop and explore our properties if we are unable to raise capital or generate sufficient cash flow.
Our ability to continue exploration and, if warranted, development of our properties will be dependent upon our ability to sell our securities. We have limited cash reserves, and we are dependent on raising significant funds in order to continue to operate and to pay our debts. In the event we are unable to raise significant funds, a portion of our interests in our properties may be lost to exploration partners or our properties may be lost completely.
Pg. 14 We have a history of losses and our business may never become profitable.
There is substantial doubt about our ability to continue as a going concern due to the losses incurred since inception, our stockholderss' deficiency, and lack of substantial revenues. We anticipate that we may require financing in order to continue our exploration and, if warranted, development of our oil and gas properties. If required, any such financing may not be available upon terms and conditions acceptable to us, if at all. Our inability to obtain additional financing in a sufficient amount when needed and upon terms and conditions acceptable to us could have a materially adverse effect upon us. If additional funds are raised by issuing equity securities, further dilution to existing or future shareholders will result. If adequate funds are not available on acceptable terms when needed, we may be required to delay, scale back or eliminate the development of any business opportunity that we acquire. Inadequate funding could also impair our ability to compete, which may result in our dissolution.
-------------------- I buy fast and sell faster! Posts: 2018 | Registered: Jan 2006
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