New York, NY (PRWEB) September 28, 2009
Energy Market Watch Journal has published a review on Odyssey Petroleum Corp. (TSX VENTURE: ODE) (Frankfurt: YQN) (Pink Sheets: ODEFF). The review offers insight and opportunity afforded investors as ODE.V is set to readily increase near term oil production and complete 3D imaging of first targets to produce large deep reserves.
The full review and valuation commentary may be found at: http://energymarketwatch.net/ode.htm online.
Excerpts: Odyssey Petroleum Corp. is now at an inflection point as an emerging oil and gas exploration and production company with significant land based reserves in the Southern United States containing multiple productive zones 7,500 ft to 17,000 ft subsurface. ODE.V possesses large reserves at depth with proven and probable reserves of 50,000,000 (BOE). Since inception in 2005 Odyssey has created a small base of production from wells at shallower depths through a highly skilled, cost effective, in-house workforce and hands-on management. Odyssey now feels they are securely in position to exploit the deeper known reserves, a move which will propel Odyssey to large production status/cash flow. 3D imaging of the first wells targeted at the ~17,000 ft zone of the reserves will be completed by the end of Q1 2010 and the results will be used to facilitate (operationally and financially) the drilling/production. Energy MarketWatch Journal has confirmed debt financing readily serviced by production is arranged to facilitate a two phased plan now underway. Phase one involves immediate action to boost production from current ~350 barrels per day to between 600 and 1000 through low risk development of work-overs -- this will occur while 3D imaging is being performed to set the stage for Phase 2 where the imaging results will have minimized risk and provide a means to drill and produce multiple wells drilled to ~17,000ft. Each deep well will cost ~USD$5M to drill yet is expected to yield 500 to 1000+ barrels of oil a day for 20+ years (4,000,000 barrels of oil and 4B cubic feet of gas from each well).
The risk-reward characteristics are highly advantageous for investors establishing a long position in ODE.V now. With less than ~188M shares outstanding (208M after closing of recent private placement announcement) and trading under CDN$0.10 ODE.V is poised for significant upside revaluation.
Change valuation from 'proven undeveloped' to 'proven producing': On a 50,000,000 barrel reserve which Odyssey Petroleum Corp. now possesses, if it were given a 'proven developed producing' type reserve evaluation using accepted valuation metrics then it would be appropriate to attribute $12-14 per barrel in the ground (potentially resulting in a valuation of ~$500M). It is evident that a significant upside share price revaluation is in store for ODE.V shareholders as Energy Market Watch Journal has confirmed with Joe DeVries, Chief Executive Officer & Director of Odyssey Petroleum Corp. that the company is being capitalized to implement a two phased plan to take the Company to a self sustaining rapid production growth position. In light of the serious and imminent nature of this capitalization of the company to accomplish its goals it is not unreasonable for shares of ODE.V on a forward discounted bases trade and gravitate significantly higher in the interim.