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Business Wire: Deep Well’s Valuation is Set in the Oil Sands Game…

Business Wire: Deep Well’s Valuation is Set in the Oil Sands Game after Shell’s/BlackRock Takeover Bid; Deep Well’s Reserves Value is Estimated, in Comparison at $16.60 Per Share, Says Investrend Affiliate SISM Research Analyst Ernest C. Schlotter

May 30, 2006
 
(Investrend Research Syndicate) Ernest C. Schlotter, a senior analyst with Investrend affiliate SISM Research and a Starmine four star analyst, has placed an estimated reserve value of $13.20 to $16.60 per share on Deep Well Oil & Gas (OTC: DWOG) reserves.

According to SISM’s Research Note at http://www.investrendresearch.com:

Alberta oil sands are heating up with a focus on the Peace River Oil Sands, the least commercially developed of Alberta’s oil sands areas. BlackRock’s friendly takeover by Shell is the newest push of the supermajors into Canada’s booming oil sands and unconventional oil production. A new valuation is set in the oil sands game, as Shell will pay US$15.50/barrel for BlackRock’s proved reserves and US$2.20/barrel for estimated reserves.

“Compared to Shell’s BlackRock takeover bid of $2.20/barrel for estimated reserves, Deep Well is massively undervalued as the company currently trades at only $0.21/barrel for estimated reserves. Deep Well’s reserves today could be valued at US$1.75 per barrel, which would be $13.20 per share, as its project is less developed than BlackRock’s,” said Schlotter. “In addition, it is expected that the SEC will soon rule whether Alberta’s oil sands can be included in company reserves for reporting purposes. A positive ruling, which is expected, will open the door to one of the largest-scale competitions for energy resources ever seen as big oil companies rush to enter the oil sands business. Both of the above factors make DWOG a prime acquisition target, sometime that would be very lucrative for shareholders.”

Deep Well pays SISM Research $1,750 per month over a two-year period solely to ensure independent coverage.

SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM writes, publishes and distributes research coverage, in both English and German, on micro- to small-cap public companies trading on the OTC Bulletin Board, NASDAQ and AMEX.

This coverage is geared toward institutional and individual investors in both North America and in German-speaking Europe, a market that represents more than 100 million people. SISM is a content provider to Thomson Financials OneAnalytics/FirstCall and Investext, to Reuters Multex, and Investrend.

Both SISM and Investrend subscribe to the “Standards of Practice for Research Providers” at http://www.firstresearchconsortium.com. Complete information is available at the company’s InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes. Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.

The company’s research is enrolled for investor monitoring by the Shareholders Research Alliance, Inc. (http://www.shareholdersresearch.com).

Anyone interested in receiving alerts regarding Deep Well research should email [email protected] with “DWOG” in the subject line.Deep Well Oil & Gas Investor Relations 1-888-OILSAND (1-888-645-7263) or Investrend Research Div. Investrend Communications, Inc. R. Hempel, 718-896-5060 [email protected] www.investrendresearch.com
 

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