MANAS PETROLEUM ANNOUNCES CLOSING OF PRIVATE PLACEMENT BY CANADIAN PETROMANAS ENERGY INC. AND ACCELERATED ISSUANCE OF 100,000,000 SHARES OF PETROMANAS ENERGY TO MANAS PETROLEUM SUBSIDIARY DWM
BAAR, SWITZERLAND, May 27th, 2010.Manas Petroleum Corporation (OTCBB:MNAP) (“Manas” or the “Company”) is pleased to announce that Petromanas Energy Inc. (TSXV:PMI) (“Petromanas”) has closed a brokered private placement of 187,500,000 units ("Units") at a price of $0.40 per Unit (the "Offering") for aggregate gross proceeds of $75,000,000. Each Unit consisted of one Petromanas common share ("Common Share") and onehalf of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional common share of Petromanas at a price of $0.60 per share on or before May 26, 2012.
Quantum Partners Ltd., a private investment fund managed by Soros Fund Management, LLC subscribed for 72,500,000 Units. Investment Funds managed by Columbia Wanger Asset Management subscribed for a total of 65,000,000 Units.
Pursuant to a share purchase agreement dated February 12, 2010, as amended May 25, 2010, Petromanas Energy has issued to DWM Petroleum AG ("DWM"), a wholly-owned subsidiary of Manas Petroleum, an additional 100,000,000 Petromanas common shares. DWM now has ownership and control over 200,000,000 common shares of Petromanas and the right to acquire a further 50,000,000 common shares of Petromanas. The 200,000,000 common shares represent 32.36% of the issued and outstanding common shares of Petromanas. Assuming DWM acquired the additional 50,000,000 common shares it would hold 250,000,000 common shares representing 37.42% of the partially diluted issued and outstanding shares of Petromanas.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight101 Plaza Real South, Suite 212Boca Raton, FL 334321-800-404-8982www.undiscoveredequities.com
Friday, May 28, 2010
MANAS PETROLEUM ANNOUNCES CLOSING OF PRIVATE PLACEMENT BY CANADIAN PETROMANAS ENERGY INC. AND ACCELERATED ISSUANCE OF 100,000,000 SHARES OF PETROMANAS
BAAR, SWITZERLAND, May 27th, 2010.
Manas Petroleum Corporation (OTCBB:MNAP) (“Manas” or the “Company”) is pleased to announce that Petromanas Energy Inc. (TSXV:PMI) (“Petromanas”) has closed a brokered private placement of 187,500,000 units ("Units") at a price of $0.40 per Unit (the "Offering") for aggregate gross proceeds of $75,000,000. Each Unit consisted of one Petromanas common share ("Common Share") and onehalf of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional common share of Petromanas at a price of $0.60 per share on or before May 26, 2012.
Quantum Partners Ltd., a private investment fund managed by Soros Fund Management, LLC subscribed for 72,500,000 Units. Investment Funds managed by Columbia Wanger Asset Management subscribed for a total of 65,000,000 Units.
Pursuant to a share purchase agreement dated February 12, 2010, as amended May 25, 2010, Petromanas Energy has issued to DWM Petroleum AG ("DWM"), a wholly-owned subsidiary of Manas Petroleum, an additional 100,000,000 Petromanas common shares. DWM now has ownership and control over 200,000,000 common shares of Petromanas and the right to acquire a further 50,000,000 common shares of Petromanas. The 200,000,000 common shares represent 32.36% of the issued and outstanding common shares of Petromanas. Assuming DWM acquired the additional 50,000,000 common shares it would hold 250,000,000 common shares representing 37.42% of the partially diluted issued and outstanding shares of Petromanas.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Manas Petroleum Corporation (OTCBB:MNAP) (“Manas” or the “Company”) is pleased to announce that Petromanas Energy Inc. (TSXV:PMI) (“Petromanas”) has closed a brokered private placement of 187,500,000 units ("Units") at a price of $0.40 per Unit (the "Offering") for aggregate gross proceeds of $75,000,000. Each Unit consisted of one Petromanas common share ("Common Share") and onehalf of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional common share of Petromanas at a price of $0.60 per share on or before May 26, 2012.
Quantum Partners Ltd., a private investment fund managed by Soros Fund Management, LLC subscribed for 72,500,000 Units. Investment Funds managed by Columbia Wanger Asset Management subscribed for a total of 65,000,000 Units.
Pursuant to a share purchase agreement dated February 12, 2010, as amended May 25, 2010, Petromanas Energy has issued to DWM Petroleum AG ("DWM"), a wholly-owned subsidiary of Manas Petroleum, an additional 100,000,000 Petromanas common shares. DWM now has ownership and control over 200,000,000 common shares of Petromanas and the right to acquire a further 50,000,000 common shares of Petromanas. The 200,000,000 common shares represent 32.36% of the issued and outstanding common shares of Petromanas. Assuming DWM acquired the additional 50,000,000 common shares it would hold 250,000,000 common shares representing 37.42% of the partially diluted issued and outstanding shares of Petromanas.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Thursday, May 27, 2010
Petromanas Energy Inc. announces closing of $75,000,000 private placement offering
Petromanas Energy Inc. announces closing of $75,000,000 private placement offering
Press Release Source: Petromanas Energy Inc. On Thursday May 27, 2010, 3:40 pm
BAAR, Switzerland, May 27 - Petromanas Energy Inc. (TSXV: PMI) ("Petromanas" or the "Company") is pleased to announce that it has closed its brokered private placement with a syndicate of agents co-lead by Raymond James Ltd. and GMP Securities LP and including Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (the "Agents") of 187,500,000 units ("Units") at a price of $0.40 per Unit (the "Offering") for aggregate gross proceeds of $75,000,000. Each Unit consists of one common share ("Common Share") and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional common share of the Company at a price of $0.60 per share on or before May 26, 2012.
The Offering was over-subscribed and the Agents exercised their option to purchase an additional 37,500,000 Units. The Common Shares, Warrants and any common shares acquired on exercise of the Warrants are subject to a hold period expiring September 28, 2010. The Agents were paid a cash commission equal to 6% of the gross proceeds of the Offering.
Quantum Partners Ltd., a private investment fund managed by Soros Fund Management, LLC subscribed for 72,500,000 Units. Investment Funds managed by Columbia Wanger Asset Management subscribed for a total of 65,000,000 Units.
Early Warning Requirements
Pursuant to a share purchase agreement dated February 12, 2010, as
amended May 25, 2010, the Company has issued to DWM Petroleum AG ("DWM") an
additional 100,000,000 common shares. DWM now has ownership and control over
200,000,000 common shares of the Company and the right to acquire a further
50,000,000 common shares of the Company. The 200,000,000 common shares
represent 32.36% of the issued and outstanding common shares of the Company.
Assuming DWM acquired the additional 50,000,000 common shares it would hold
250,000,000 common shares representing 37.42% of the partially diluted issued
and outstanding shares of the Company.
The Company understands that DWM does not act jointly or in concert with any other person and that DWM acquired the securities for investment purposes. The Company understands that DWM has no present intention to acquire further securities of the Company, although they may in the future acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions warrant.
A copy of the Early Warning Report filed with the applicable securities regulators regarding the transaction is available on SEDAR (http://www.sedar.com/). A copy of the Early Warning Report and further information may also be obtained by contacting Gordon Keep, Secretary of the Company, at (604) 609-6110.
About Petromanas Energy Inc.
Petromanas is an international oil and gas company focused on the
exploration and development of its assets in Albania that possess world-class
resource potential. Petromanas, through its wholly-owned subsidiary, holds
three Production Sharing Contracts ("PSCs") with the Albanian government.
Under the terms of the PSCs, Petromanas has a 100% working interest in six
onshore blocks (Blocks A, B, D, E, 2 and 3) that comprise more than 1.7
million acres across Albania's Berati thrust belt.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information
Gordon Keep, Corporate Secretary, Tel: (604) 609-6110, Website: www.petromanas.com
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Press Release Source: Petromanas Energy Inc. On Thursday May 27, 2010, 3:40 pm
BAAR, Switzerland, May 27 - Petromanas Energy Inc. (TSXV: PMI) ("Petromanas" or the "Company") is pleased to announce that it has closed its brokered private placement with a syndicate of agents co-lead by Raymond James Ltd. and GMP Securities LP and including Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (the "Agents") of 187,500,000 units ("Units") at a price of $0.40 per Unit (the "Offering") for aggregate gross proceeds of $75,000,000. Each Unit consists of one common share ("Common Share") and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional common share of the Company at a price of $0.60 per share on or before May 26, 2012.
The Offering was over-subscribed and the Agents exercised their option to purchase an additional 37,500,000 Units. The Common Shares, Warrants and any common shares acquired on exercise of the Warrants are subject to a hold period expiring September 28, 2010. The Agents were paid a cash commission equal to 6% of the gross proceeds of the Offering.
Quantum Partners Ltd., a private investment fund managed by Soros Fund Management, LLC subscribed for 72,500,000 Units. Investment Funds managed by Columbia Wanger Asset Management subscribed for a total of 65,000,000 Units.
Early Warning Requirements
Pursuant to a share purchase agreement dated February 12, 2010, as
amended May 25, 2010, the Company has issued to DWM Petroleum AG ("DWM") an
additional 100,000,000 common shares. DWM now has ownership and control over
200,000,000 common shares of the Company and the right to acquire a further
50,000,000 common shares of the Company. The 200,000,000 common shares
represent 32.36% of the issued and outstanding common shares of the Company.
Assuming DWM acquired the additional 50,000,000 common shares it would hold
250,000,000 common shares representing 37.42% of the partially diluted issued
and outstanding shares of the Company.
The Company understands that DWM does not act jointly or in concert with any other person and that DWM acquired the securities for investment purposes. The Company understands that DWM has no present intention to acquire further securities of the Company, although they may in the future acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions warrant.
A copy of the Early Warning Report filed with the applicable securities regulators regarding the transaction is available on SEDAR (http://www.sedar.com/). A copy of the Early Warning Report and further information may also be obtained by contacting Gordon Keep, Secretary of the Company, at (604) 609-6110.
About Petromanas Energy Inc.
Petromanas is an international oil and gas company focused on the
exploration and development of its assets in Albania that possess world-class
resource potential. Petromanas, through its wholly-owned subsidiary, holds
three Production Sharing Contracts ("PSCs") with the Albanian government.
Under the terms of the PSCs, Petromanas has a 100% working interest in six
onshore blocks (Blocks A, B, D, E, 2 and 3) that comprise more than 1.7
million acres across Albania's Berati thrust belt.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information
Gordon Keep, Corporate Secretary, Tel: (604) 609-6110, Website: www.petromanas.com
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Undiscovered Equities Top 10 Picks for 2010
Undiscovered Equities, Inc.
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
As promised, we at Undiscovered Equities would like to take this opportunity to showcase our top 10 investment opportunities for 2010. Last year we urged our subscribers to ignore the nervousness of the times and take advantage of the opportunity that the period of forced liquidation created. As our results show, it proved to be, as Warren Buffett said, “one of the greatest buying opportunities of our lifetime.” Our advice to our subscribers this year is to remain patient, have a long term outlook and continue to invest in great businesses: ones that can make huge profits and grow dramatically even in today’s economic environment. Looking ahead we expect that the market for crude oil will continue to grow, especially as certain areas of the world such as India and China continue to modernize. We feel that oil prices will trade in a range between $66 and $90 per barrel. This year however we are avoiding domestic natural gas exploration plays as we believe gas prices will remain under pressure due to the recent robust shale finds and the challenging US economic environment. In the past we have focused primarily on the energy sector, but this year we have chosen to diversify as several extraordinary opportunities have captured our attention. We expect these 10 stocks to outperform in the New Year and as always it is important to keep some cash in reserves for extraordinary opportunities.
All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!
Endeavour Financial (TSX: EDV) $1.77 Ironically, we were introduced to Endeavour through their interest in Manas Petroleum’s giant concessions in Albania. TSX Listed Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies. Many resource investors know the Vancouver based financier Frank Giustra. Endeavour is Giustra’s most public investment vehicle and together they have been behind some of the biggest wins in the resource market this decade, including Wheaton River Gold, Northern Orion Resources and Urasia Energy. Endeavour’s track record has been impeccable, and we think they will continue to produce significant returns for their shareholders for years to come. We also feel that the continued weakness in the dollar will add to Endeavour’s success.
Environmental Infrastructure Holdings Corp. (OTC BB: EIHC) $0.26 Environmental Infrastructure Holdings (EIHC) is the parent company of various environmental manufacturing, engineering, and services companies. Currently, EIHC has two subsidiaries Equisol, LLC and Xiom Corp. as well as investments into various joint ventures and partnerships. Recognized in 2008 by INC Magazine as the 7th fastest growing private Environmental Services Company in America, Equisol, LLC, is a unique equipment solutions provider specializing in the water and wastewater industry. Their team of top rated engineers specializes in automation equipment and services across multiple industries where water use and automation are important. From consulting and design of equipment systems, to sales, installation and maintenance services, Equisol can address their customer's needs in many diverse applications. Equisol provides cost effective equipment strategies to allow users of water and producers of wastewater to achieve profitability while focusing on their core business activities. Through Equisol's association with world technology leaders, they are able to supply a broad spectrum of high quality products. Their staff, with over 300 years of engineering experience in equipment automation, uses these technologies to select the most effective solution for their customer's applications. Other recognition that Equisol has achieved include the Entrepreneur Hot 100 Fastest New Companies in 2004, INC5000 ranking of #621 for 2007, and 2009 Philadelphia 100 recognizing the fastest growing private companies in the region. Xiom Corp. is a technology business offering delivery of plastic powder coatings at on-site locations utilizing the XIOM 1000 System. Powder coating currently is a process in which metal parts are brought into a factory environment where they are cleaned and prepared to receive a powder coating. Plastic in powder form is then applied to the various metal parts by means of an electrostatic charge that causes the powder to adhere to the surface. The coated part is then heated in an oven for a period of time to cause the plastic to melt and adhere to the substrate. Although they use plastic powder, they do not electro-statically charge that powder in order for it to adhere to a substrate. Xiom uses a different mechanism which simultaneously applies and fuses the powder to a substrate. The advantage of this process is that the coating process is totally portable and can be applied anywhere, not necessarily in a factory setting, and can be applied without use of an oven to cure the coating, and can be applied to most substrates in addition to the metal substrate to which powder coatings are traditionally applied in a factory, using an oven. The CEO of the combined entities, Mr. Michael Parrish has extensive operational and general management experience; his focus is on financial performance and strategic alliances. Prior to running Equisol, Mr. Parrish held various executive positions in several General Electric Companies where he served in positions such as General Manager for global logistics and services for GE’s Water business, and, earlier, as Managing Director for GE Capital specializing in ecommerce, six sigma, and productivity of several of GE’s equipment management groups. Prior to GE, Mr. Parrish served for 14 years active duty in the U.S. Army where he held various leadership positions of increasing responsibility as an Army Aviator culminating as a member of the Army Acquisition Corps. Mr. Parrish has a Bachelor’s degree in Engineering from the U.S. Military Academy at West Point as well as a Masters degree in Astronautically Engineering from Stanford University and an MBA with honors from the Wharton School at the University of Pennsylvania. He is the current President of the West Point Society of Philadelphia and serves on the boards of the USO of SE PA/NJ and the Delaware Valley Industrial Resources Council. We think this company is extremely undervalued given the fact that the applications for Xiom's products are virtually endless. With the addition of Mike Parish and the Equisol team we believe revenues will grow dramatically in 2010.
Far East Energy Corporation (OTC BB: FEEC) $0.46 Houston, Texas based Far East Energy Corporation together with its subsidiaries, focuses on the exploration, development, production, and sale of coalbed methane gas (CBM) in the People's Republic of China. The company owns interests in three production sharing contracts, which cover the 485,000-acre Shouyang Block in Shanxi Province; the 573,000-acre Qinnan Block in Shanxi Province; and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province. Far East Energy has formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer. In addition Far East recently announced that gas production from the Shouyang Block in the Shouyang Block of Shanxi Province, China, has begun and is accelerating rapidly. The Shanxi project in full development has the potential to become one of the largest CBM projects in the world. In a country that desperately needs clean energy sources, Far East Energy has the potential to produce between 10 and 20 TFC of natural gas. It is also important to note that the price of natural gas in China has gone up over the last 3 years as opposed to the US where prices have plummeted. We have been following Far East for quite some time and now more than ever we are aggressive buyers.
Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE) $5.74 Gran Tierra Energy, Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. Current production from operations exceeds 13,000 BOPD net after royalty. The Company recently announced a capital spending program of $195 million in 2010 for exploration and production that includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Gran Tierra Energy had $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand. This is a very strong well run company and we feel they will continue to drill economic wells as they enter next year with the largest exploration drilling program in the company's history.
Houston American Energy Corp. (Nasdaq: HUSA) $6.13 Houston American Energy Corp. is an oil and gas exploration and production company whose activities are focused on several concessions in the South American country of Colombia. Houston American continues to generate strong operating cash flow from their production base in Colombia with their interest in the Hupecol project which is currently producing over 850 net barrels of oil per day and growing. In 2009, Houston American recently added 2 extremely valuable assets to their portfolio of properties. The Company partnered up with SK Energy Co. LTD to develop the highly prolific CPO 4 Block covering 345,452 acres which is situated along the productive western margin of the Llanos Basin in Colombia. Houston American now controls 25% of the CPO 4 Block which encompasses the same structure as the Corcel block where well rates of between 2,000 and 10,000 barrels of oil per day have recently been announced. SK Energy believes the CPO 4 Block has over 100 viable drilling locations with estimated recoverable reserves of 1-4 billion barrels. A 3-D seismic program is ongoing. In 2009 Houston American also inked a substantial farmout agreement with Shona Energy (Colombia) LTD. to earn a 12.5% interest in the Serrania Block, which is adjacent to the recent Ombu discovery which contains an estimated 1 billion barrels of oil in place. With the largest exploration budget in its history approved and funded Houston American enters 2010 with considerable momentum and we feel the stock will break out to new levels.
Hyperdynamics Corporation (NYSE Amex: HDY) $0.88 Sugar Land, Texas based Hyperdynamics Corporation engages in the exploration and production of oil and gas in West Africa. It holds certain contract rights for the exploration and exploitation of oil and gas in an approximately 80,000 square kilometer concession off the coast of the Republic of Guinea. The last several months have been very exciting for Hyperdynamics as they have partnered up with 2 very strong and capable companies. First Hyperdynamics signed a binding sale and purchase agreement (S&PA) with Aberdeen, Scotland, based Dana Petroleum PLC under which Dana has agreed to acquire a 23 percent participating interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $19.6 million. In addition Hyperdynamics has signed an agreement for exclusive dealing and letter of intent (the "LOI") with Spain's largest oil company Repsol YPF, S.A. (BMAD: REP and NYSE: REP) under which the two companies will negotiate the assignment to Repsol a 37 percent interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $31.5 million. Repsol also would be the operator of the Guinea project. Ray Leonard, Hyperdynamics President and Chief Executive Officer, said, "Dana Petroleum and Repsol bring significant experience to jointly explore our concession in Northwest Africa, as Repsol and Dana have successfully partnered in the past on exploration projects in Northwest Africa. "Assuming we reach definitive agreements with Repsol, Hyperdynamics will retain a 40 percent working interest in the Guinea concession and will be in a stronger financial position, with more than $51 million upon the entry into full legal effect of the production sharing contract clarification to fund our share of 3D seismic and drilling required during the exploratory period. We look forward to working with both companies to explore and develop this large, highly prospective offshore tract." If successful, we feel this company has potential to grow into a multibillion dollar company.
ICOP Digital, Inc. (Nasdaq: ICOP) $0.44 ICOP Digital, Inc. is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors improve security, reduce losses, and mitigate risks through the capture, live streaming and secure management of high quality video and audio. ICOP has already penetrated law enforcement markets in 49 states, as well as key international markets, including Mexico and Saudi Arabia. ICOP Digital is currently the only approved vendor of in-car video equipment for the Kingdom of Saudi Arabia, contracted through their Ministry of Interior. We estimate the market in Saudi Arabia to be over 100,000 security vehicles and feel ICOP has great potential to capture this and other key markets in the Middle East. A few domestic clients include Alaska State Troopers, Wyoming State Troopers, Mobile Police Department in Alabama, and Hartford Police Department in Connecticut. ICOP's products have proven to be of the utmost caliber of quality in the industry, as Raytheon recently signed a 5 year agreement to sell ICOP products worldwide. We believe this to be a game changing event for the company and partnering up with Raytheon will open up significant markets to ICOP's array of products. Globally, security continues to be a major concern, and video is proving to be a key component in the growth of the security industry. We believe significant monies will be spent to modernize current systems, worldwide. Therefore, we believe 2010 will be a breakout year for ICOP.
InterOil Corporation (NYSE: IOC) $77.07 InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. Congratulations to all longs as 2009 has been a truly spectacular year for the company. With 2 world record breaking wells in Antelope we wonder what Phil will do for an encore in 2010. Although the stock price has moved significantly higher we still feel there are many short and long term catalysts that will propel InterOil to new levels. Some near term examples of the upside here are possible deals announced per China, India, Japan, etc., a possible oil find announcement, further news on the proposed condensate plant, and additional analyst coverage.
Manas Petroleum (OTC BB: MNAP) $0.55 Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America. Since inception, Manas has acquired a spectacular portfolio of high impact exploration properties. In keeping with their philosophy of building a strong and enduring resource base, earlier in 2009 Manas added blocks 2 and 3 in Albania, blocks 13 and 14 in Mongolia and the Western blocks in Tajikistan, expanding their portfolio from 11 to 16 blocks in 5 countries; we now believe that Manas controls in excess of 4 Billion Barrels of Recoverable Oil. Every one of the Company’s giant projects are moving forward and maturing toward production. In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra. We believe this is an excellent transaction for Manas as it will create significant shareholder value moving forward. The closing is expected to be completed during the first several weeks of the New Year. In Kyrgyzstan, Manas has signed a $54 million USD farm-out agreement with Santos LTD ADR, covering 1.2 billion barrels in place (Scott Pickford, 2005). Santos will continue to drill with Manas on their 6 shallow and deep well program in 2010. Manas' Development of its license in Tajikistan is now covered by an option farm-in agreement with Santos, where a seismic program is moving forward. In Mongolia Manas will expand their exploration with a seismic campaign to encompass approximately 20, 000 square kilometers. Additionally, to expose Manas to a much larger and more sophisticated audience, the Company is continuing to take the necessary steps to become listed on the TSX Venture stock exchange. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities and surely this company has the greatest upside potential on our list.
Nutra Pharma Corporation (OTC BB: NPHC) $0.35 Nutra Pharma Corporation was founded in 2000 and is based in Plantation, Florida. The company, through its subsidiaries, operates as a biotechnology company specializing in the acquisition, licensing, and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, pain, autoimmune, and infectious diseases. Nutra Pharma's wholly-owned drug discovery subsidiary, ReceptoPharm, is developing proprietary therapeutic protein products primarily for the prevention and treatment of viral and neurological diseases, including Multiple Sclerosis (MS), Adrenomyeloneuropathy (AMN), and Human Immunodeficiency Virus (HIV), and pain in humans. Additionally, ReceptoPharm provides contract research services through its ISO class 5 and GMP certified facilities. The Company recently launched an Over-The-Counter (OTC) Treatment for Stage 2 (Moderate to Severe) Chronic Pain called Cobroxin. Cobroxin is the first OTC pain reliever clinically proven to treat Stage 2 (moderate to severe) chronic pain and is available as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps and neuralgia and as a topical gel for treating repetitive stress, arthritis, and joint pain. Nutra Pharma also has formulated a higher dose pharmaceutical grade treatment for stage 3 (severe) pain called Nyloxin. Nyloxin Oral Spray is an oral formulation of diluted cobra venom prepared according to the requirements of the Homeopathic Pharmacopoeia of the United States (HPUS) and its supporting texts. What really drew us to this company is the exceptional management team lead by CEO Rik J Deitsch. With sales of Cobroxin ramping up, Nutra Pharma appears to be well on the way to becoming a major success. Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212 Boca Raton, FL 33432
http://www.undiscoveredequities.com/
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
As promised, we at Undiscovered Equities would like to take this opportunity to showcase our top 10 investment opportunities for 2010. Last year we urged our subscribers to ignore the nervousness of the times and take advantage of the opportunity that the period of forced liquidation created. As our results show, it proved to be, as Warren Buffett said, “one of the greatest buying opportunities of our lifetime.” Our advice to our subscribers this year is to remain patient, have a long term outlook and continue to invest in great businesses: ones that can make huge profits and grow dramatically even in today’s economic environment. Looking ahead we expect that the market for crude oil will continue to grow, especially as certain areas of the world such as India and China continue to modernize. We feel that oil prices will trade in a range between $66 and $90 per barrel. This year however we are avoiding domestic natural gas exploration plays as we believe gas prices will remain under pressure due to the recent robust shale finds and the challenging US economic environment. In the past we have focused primarily on the energy sector, but this year we have chosen to diversify as several extraordinary opportunities have captured our attention. We expect these 10 stocks to outperform in the New Year and as always it is important to keep some cash in reserves for extraordinary opportunities.
All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!
Endeavour Financial (TSX: EDV) $1.77 Ironically, we were introduced to Endeavour through their interest in Manas Petroleum’s giant concessions in Albania. TSX Listed Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies. Many resource investors know the Vancouver based financier Frank Giustra. Endeavour is Giustra’s most public investment vehicle and together they have been behind some of the biggest wins in the resource market this decade, including Wheaton River Gold, Northern Orion Resources and Urasia Energy. Endeavour’s track record has been impeccable, and we think they will continue to produce significant returns for their shareholders for years to come. We also feel that the continued weakness in the dollar will add to Endeavour’s success.
Environmental Infrastructure Holdings Corp. (OTC BB: EIHC) $0.26 Environmental Infrastructure Holdings (EIHC) is the parent company of various environmental manufacturing, engineering, and services companies. Currently, EIHC has two subsidiaries Equisol, LLC and Xiom Corp. as well as investments into various joint ventures and partnerships. Recognized in 2008 by INC Magazine as the 7th fastest growing private Environmental Services Company in America, Equisol, LLC, is a unique equipment solutions provider specializing in the water and wastewater industry. Their team of top rated engineers specializes in automation equipment and services across multiple industries where water use and automation are important. From consulting and design of equipment systems, to sales, installation and maintenance services, Equisol can address their customer's needs in many diverse applications. Equisol provides cost effective equipment strategies to allow users of water and producers of wastewater to achieve profitability while focusing on their core business activities. Through Equisol's association with world technology leaders, they are able to supply a broad spectrum of high quality products. Their staff, with over 300 years of engineering experience in equipment automation, uses these technologies to select the most effective solution for their customer's applications. Other recognition that Equisol has achieved include the Entrepreneur Hot 100 Fastest New Companies in 2004, INC5000 ranking of #621 for 2007, and 2009 Philadelphia 100 recognizing the fastest growing private companies in the region. Xiom Corp. is a technology business offering delivery of plastic powder coatings at on-site locations utilizing the XIOM 1000 System. Powder coating currently is a process in which metal parts are brought into a factory environment where they are cleaned and prepared to receive a powder coating. Plastic in powder form is then applied to the various metal parts by means of an electrostatic charge that causes the powder to adhere to the surface. The coated part is then heated in an oven for a period of time to cause the plastic to melt and adhere to the substrate. Although they use plastic powder, they do not electro-statically charge that powder in order for it to adhere to a substrate. Xiom uses a different mechanism which simultaneously applies and fuses the powder to a substrate. The advantage of this process is that the coating process is totally portable and can be applied anywhere, not necessarily in a factory setting, and can be applied without use of an oven to cure the coating, and can be applied to most substrates in addition to the metal substrate to which powder coatings are traditionally applied in a factory, using an oven. The CEO of the combined entities, Mr. Michael Parrish has extensive operational and general management experience; his focus is on financial performance and strategic alliances. Prior to running Equisol, Mr. Parrish held various executive positions in several General Electric Companies where he served in positions such as General Manager for global logistics and services for GE’s Water business, and, earlier, as Managing Director for GE Capital specializing in ecommerce, six sigma, and productivity of several of GE’s equipment management groups. Prior to GE, Mr. Parrish served for 14 years active duty in the U.S. Army where he held various leadership positions of increasing responsibility as an Army Aviator culminating as a member of the Army Acquisition Corps. Mr. Parrish has a Bachelor’s degree in Engineering from the U.S. Military Academy at West Point as well as a Masters degree in Astronautically Engineering from Stanford University and an MBA with honors from the Wharton School at the University of Pennsylvania. He is the current President of the West Point Society of Philadelphia and serves on the boards of the USO of SE PA/NJ and the Delaware Valley Industrial Resources Council. We think this company is extremely undervalued given the fact that the applications for Xiom's products are virtually endless. With the addition of Mike Parish and the Equisol team we believe revenues will grow dramatically in 2010.
Far East Energy Corporation (OTC BB: FEEC) $0.46 Houston, Texas based Far East Energy Corporation together with its subsidiaries, focuses on the exploration, development, production, and sale of coalbed methane gas (CBM) in the People's Republic of China. The company owns interests in three production sharing contracts, which cover the 485,000-acre Shouyang Block in Shanxi Province; the 573,000-acre Qinnan Block in Shanxi Province; and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province. Far East Energy has formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer. In addition Far East recently announced that gas production from the Shouyang Block in the Shouyang Block of Shanxi Province, China, has begun and is accelerating rapidly. The Shanxi project in full development has the potential to become one of the largest CBM projects in the world. In a country that desperately needs clean energy sources, Far East Energy has the potential to produce between 10 and 20 TFC of natural gas. It is also important to note that the price of natural gas in China has gone up over the last 3 years as opposed to the US where prices have plummeted. We have been following Far East for quite some time and now more than ever we are aggressive buyers.
Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE) $5.74 Gran Tierra Energy, Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. Current production from operations exceeds 13,000 BOPD net after royalty. The Company recently announced a capital spending program of $195 million in 2010 for exploration and production that includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Gran Tierra Energy had $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand. This is a very strong well run company and we feel they will continue to drill economic wells as they enter next year with the largest exploration drilling program in the company's history.
Houston American Energy Corp. (Nasdaq: HUSA) $6.13 Houston American Energy Corp. is an oil and gas exploration and production company whose activities are focused on several concessions in the South American country of Colombia. Houston American continues to generate strong operating cash flow from their production base in Colombia with their interest in the Hupecol project which is currently producing over 850 net barrels of oil per day and growing. In 2009, Houston American recently added 2 extremely valuable assets to their portfolio of properties. The Company partnered up with SK Energy Co. LTD to develop the highly prolific CPO 4 Block covering 345,452 acres which is situated along the productive western margin of the Llanos Basin in Colombia. Houston American now controls 25% of the CPO 4 Block which encompasses the same structure as the Corcel block where well rates of between 2,000 and 10,000 barrels of oil per day have recently been announced. SK Energy believes the CPO 4 Block has over 100 viable drilling locations with estimated recoverable reserves of 1-4 billion barrels. A 3-D seismic program is ongoing. In 2009 Houston American also inked a substantial farmout agreement with Shona Energy (Colombia) LTD. to earn a 12.5% interest in the Serrania Block, which is adjacent to the recent Ombu discovery which contains an estimated 1 billion barrels of oil in place. With the largest exploration budget in its history approved and funded Houston American enters 2010 with considerable momentum and we feel the stock will break out to new levels.
Hyperdynamics Corporation (NYSE Amex: HDY) $0.88 Sugar Land, Texas based Hyperdynamics Corporation engages in the exploration and production of oil and gas in West Africa. It holds certain contract rights for the exploration and exploitation of oil and gas in an approximately 80,000 square kilometer concession off the coast of the Republic of Guinea. The last several months have been very exciting for Hyperdynamics as they have partnered up with 2 very strong and capable companies. First Hyperdynamics signed a binding sale and purchase agreement (S&PA) with Aberdeen, Scotland, based Dana Petroleum PLC under which Dana has agreed to acquire a 23 percent participating interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $19.6 million. In addition Hyperdynamics has signed an agreement for exclusive dealing and letter of intent (the "LOI") with Spain's largest oil company Repsol YPF, S.A. (BMAD: REP and NYSE: REP) under which the two companies will negotiate the assignment to Repsol a 37 percent interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $31.5 million. Repsol also would be the operator of the Guinea project. Ray Leonard, Hyperdynamics President and Chief Executive Officer, said, "Dana Petroleum and Repsol bring significant experience to jointly explore our concession in Northwest Africa, as Repsol and Dana have successfully partnered in the past on exploration projects in Northwest Africa. "Assuming we reach definitive agreements with Repsol, Hyperdynamics will retain a 40 percent working interest in the Guinea concession and will be in a stronger financial position, with more than $51 million upon the entry into full legal effect of the production sharing contract clarification to fund our share of 3D seismic and drilling required during the exploratory period. We look forward to working with both companies to explore and develop this large, highly prospective offshore tract." If successful, we feel this company has potential to grow into a multibillion dollar company.
ICOP Digital, Inc. (Nasdaq: ICOP) $0.44 ICOP Digital, Inc. is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors improve security, reduce losses, and mitigate risks through the capture, live streaming and secure management of high quality video and audio. ICOP has already penetrated law enforcement markets in 49 states, as well as key international markets, including Mexico and Saudi Arabia. ICOP Digital is currently the only approved vendor of in-car video equipment for the Kingdom of Saudi Arabia, contracted through their Ministry of Interior. We estimate the market in Saudi Arabia to be over 100,000 security vehicles and feel ICOP has great potential to capture this and other key markets in the Middle East. A few domestic clients include Alaska State Troopers, Wyoming State Troopers, Mobile Police Department in Alabama, and Hartford Police Department in Connecticut. ICOP's products have proven to be of the utmost caliber of quality in the industry, as Raytheon recently signed a 5 year agreement to sell ICOP products worldwide. We believe this to be a game changing event for the company and partnering up with Raytheon will open up significant markets to ICOP's array of products. Globally, security continues to be a major concern, and video is proving to be a key component in the growth of the security industry. We believe significant monies will be spent to modernize current systems, worldwide. Therefore, we believe 2010 will be a breakout year for ICOP.
InterOil Corporation (NYSE: IOC) $77.07 InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. Congratulations to all longs as 2009 has been a truly spectacular year for the company. With 2 world record breaking wells in Antelope we wonder what Phil will do for an encore in 2010. Although the stock price has moved significantly higher we still feel there are many short and long term catalysts that will propel InterOil to new levels. Some near term examples of the upside here are possible deals announced per China, India, Japan, etc., a possible oil find announcement, further news on the proposed condensate plant, and additional analyst coverage.
Manas Petroleum (OTC BB: MNAP) $0.55 Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America. Since inception, Manas has acquired a spectacular portfolio of high impact exploration properties. In keeping with their philosophy of building a strong and enduring resource base, earlier in 2009 Manas added blocks 2 and 3 in Albania, blocks 13 and 14 in Mongolia and the Western blocks in Tajikistan, expanding their portfolio from 11 to 16 blocks in 5 countries; we now believe that Manas controls in excess of 4 Billion Barrels of Recoverable Oil. Every one of the Company’s giant projects are moving forward and maturing toward production. In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra. We believe this is an excellent transaction for Manas as it will create significant shareholder value moving forward. The closing is expected to be completed during the first several weeks of the New Year. In Kyrgyzstan, Manas has signed a $54 million USD farm-out agreement with Santos LTD ADR, covering 1.2 billion barrels in place (Scott Pickford, 2005). Santos will continue to drill with Manas on their 6 shallow and deep well program in 2010. Manas' Development of its license in Tajikistan is now covered by an option farm-in agreement with Santos, where a seismic program is moving forward. In Mongolia Manas will expand their exploration with a seismic campaign to encompass approximately 20, 000 square kilometers. Additionally, to expose Manas to a much larger and more sophisticated audience, the Company is continuing to take the necessary steps to become listed on the TSX Venture stock exchange. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities and surely this company has the greatest upside potential on our list.
Nutra Pharma Corporation (OTC BB: NPHC) $0.35 Nutra Pharma Corporation was founded in 2000 and is based in Plantation, Florida. The company, through its subsidiaries, operates as a biotechnology company specializing in the acquisition, licensing, and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, pain, autoimmune, and infectious diseases. Nutra Pharma's wholly-owned drug discovery subsidiary, ReceptoPharm, is developing proprietary therapeutic protein products primarily for the prevention and treatment of viral and neurological diseases, including Multiple Sclerosis (MS), Adrenomyeloneuropathy (AMN), and Human Immunodeficiency Virus (HIV), and pain in humans. Additionally, ReceptoPharm provides contract research services through its ISO class 5 and GMP certified facilities. The Company recently launched an Over-The-Counter (OTC) Treatment for Stage 2 (Moderate to Severe) Chronic Pain called Cobroxin. Cobroxin is the first OTC pain reliever clinically proven to treat Stage 2 (moderate to severe) chronic pain and is available as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps and neuralgia and as a topical gel for treating repetitive stress, arthritis, and joint pain. Nutra Pharma also has formulated a higher dose pharmaceutical grade treatment for stage 3 (severe) pain called Nyloxin. Nyloxin Oral Spray is an oral formulation of diluted cobra venom prepared according to the requirements of the Homeopathic Pharmacopoeia of the United States (HPUS) and its supporting texts. What really drew us to this company is the exceptional management team lead by CEO Rik J Deitsch. With sales of Cobroxin ramping up, Nutra Pharma appears to be well on the way to becoming a major success. Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212 Boca Raton, FL 33432
http://www.undiscoveredequities.com/
Wednesday, May 26, 2010
Santa Fe Gold Shareholder Update (OTCBB:SFEG)
Shareholder Update (OTCBB:SFEG)
Late May 2010
Common Shareholder Questions
Recent Activity
Shareholder Questions
What is the status of the trial flux material shipment?
First, what is flux? Defined in layman's terms, flux is the name given to a chemical substance required in the process of smelting ore into metal. Freeport McMoRan, the smelter we are testing with, uses tons of flux in their copper smelting process. The chemical substance they need is silica. Our ore consists of silver, gold and silica.
What that means to Santa Fe Gold is that Freeport needs our silica and we need their smelting process. This forms the basis of a beneficial deal for both parties.
In February we announced providing Freeport with a trial shipment of 3,000 tons of low grade ore. This was mainly to determine the suitability of the material as a flux rather than primarily to make money from the sale of gold and silver. Meanwhile, the Freeport-McMoRan smelter was down for about four weeks for maintenance. In order to re-establish a baseline, they had to re-start with their own material. This slowed down the test by nearly two months. The good news is the smelter trial should be completed very soon. Following the test results Dr. Carson and Freeport-McMoRan will negotiate a contract. When completed results will be announced in the form of a press release, most likely before the end of the current quarter.
Meanwhile, revenues booked in 1Q2010 constitute the majority of what we will be paid, with a final payment due in June.
Also noteworthy is that if an agreement can be arranged, we may find some interesting economics in this agreement. Not all of the ore that comes out of the mine is of the highest grade. Some higher and some lower. If we had no option but to mill and process the ore, we would be forced to use all the grades of ore that come out of the mine. However, if we come to agreement with Freeport we can then have our metals extracted from the lower grade ore and reserve our mill for the best ore. This option will reduce wear and tear on the mill, saving money. Further, this also frees milling capacity should we secure another source of ore for the mill.
What is the status of the mill production of our concentrate?
First, what is concentrate? Concentrate is the fine, powdery product of the milling process containing a high percentage of valuable metals. This fine powder containing the gold and silver is then smelted down to produce gold and silver. Our income is based upon the ounces of gold and silver metals contained in this fine powder. Santa Fe Gold does not sell gold or silver. The product we produce and sell is called concentrate, containing gold and silver.
The mill is successfully producing concentrate and the production is ramping up quickly. Increasing amounts of ore will be processed to reach mill capacity, hopefully by year end. In the course of initializing a mill, lower quality ore is first used and as the results improve, better and better ore are processed. Right now the concentrate is accumulating and there are several smelters testing our samples in preparation for a contract offer. Obviously we are looking to maximize the returns on this valuable product and this does involve negotiations and contract discussions. Again, as soon a signed contract is in hand, an announcement will be forthcoming.
We are currently experiencing great success at our mill near Lordsburg, New Mexico. Our powder concentrate is more highly condensed than expected. (Since each drum of powder is therefore more valuable per pound, Santa Fe Gold's shipping costs to the smelter are reduced. Now we can ship our concentrate virtually anywhere in the world to obtain the best price.) At this time there is a voracious appetite in Europe for precious metals. Now with our higher levels of contained metal, we may find that our smelting takes place overseas. Since gold and silver smelting is done on a worldwide basis the competition for our business is therefore in our favor.
Can I visit the mill and the mine?
Now that we are in production, this question is coming in nearly every day. In order to accommodate the numerous requests, an open house/mill commissioning event will be planned as soon as is practical. Investors, shareholders and others will be invited. For the time being, we are focusing on operations and personnel are focused mining and milling of our ore. The interesting point in this is that most mines are neither accessible nor even near the USA. So the fact that you are able to actually reach the operations without passport, helicopter or donkey ride is frankly one of our great strengths. That you can visit the mine is also true of analysts, brokers, investors, investments bankers and institutions alike. Our mill is about 2 ½ hours from the Tucson, Arizona airport. No planning ravel during summer months only (Yukon Territory, Baffinland), no planning on immunizations and security (Congo, Zimbabwe) no planning for language barriers or currency exchange. The ease in visiting our operations is another positive for Santa Fe Gold Corporation.
Recent Activity
Dale Jackson, host of "Money on the Mark", a radio show airing in New York City, will be touring the Santa Fe Gold Corporation Summit silver-gold mine and the Banner mill with Dr. Carson the week of May 24th. Following his visit he will conduct an hour long interview with Dr. Carson, to be broadcast live in New York. The interview will later be archived to our website for you to hear. Dale has decades of experience in the business of radio advertising and investor involvement, having been a stock broker at one time. He has maintained contact with numerous individuals and investors over the years. His first hand visit, followed by the interview, will not only give credibility to investors, but will also serve to inform our shareholder base of the current state of the company. A link will be provided when the interview is complete.
http://www.KITCO.com is a precious metals website known for its news, metal prices and commentaries. Recently, Santa Fe Gold began advertising on KITCO in the form of a banner ad. The one inch by three inch banner ad is right of center near the top. The ad space is part of a rotational system where each of the 20 advertisers receives a 15 second time slot. You can refresh your screen again and again until our banner ad shows up. Or if you scroll down to the bottom of the home page, in the lower left corner, in a faint grey color, you will see our number 6. Refresh until that number appears and you will see our ad! Clicking the banner ad sends you through to our website. We have had numerous hits on our website as a result of this exposure.
Also on KITCO, we are listed on the left side of the home page about 1/3 of the way down in a box titled "Investor Information." Santa Fe Gold is on a rotation there as well, but it is not numbered. When Santa Fe Gold appears, you will find a brief write-up and a place to ask for additional information. We have received many requests from this listing as well.
Dr. Carson's travels to the Eastern USA (Atlanta, New York and Detroit) went well. He had the opportunity to meet with potential investors and renew relationships with existing shareholders. Following that, Dr. Carson spent three days in London at the Rodman and Renshaw Mining Conference, where he was able to speak to numerous institutional investors and individuals about Santa Fe Gold. Although the current share price has not reflected a surge in buying activity, more and more people are 'watching' our stock. This is a pre-cursor to activity, as we are a relatively unknown company at this point.
Another trip is being planned by Dr. Carson to New York and Boston in June as a follow up to the recent activities. Rodman is involved in some of the introductions.
Standard and Poor's manual.
Finally, Santa Fe Gold was recently listed in the Standard & Poor's Market Access Manual. This means that investors worldwide have access to the consistent and independent profile now provided to broker, financial advisors, institutions, traders and self-directed investors. Furthermore, this important listing permits more brokers than ever to recommend our stock without the limitations that some state Blue Sky laws can impose. Our visibility and our marketability have been increased by this enhancement.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico; (ii) the Ortiz gold property in north-central New Mexico, estimated to contain two million ounces of gold; (iii) the Black Canyon mica mine and processing facility near Phoenix, Arizona; and (iv) a large resource of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Late May 2010
Common Shareholder Questions
Recent Activity
Shareholder Questions
What is the status of the trial flux material shipment?
First, what is flux? Defined in layman's terms, flux is the name given to a chemical substance required in the process of smelting ore into metal. Freeport McMoRan, the smelter we are testing with, uses tons of flux in their copper smelting process. The chemical substance they need is silica. Our ore consists of silver, gold and silica.
What that means to Santa Fe Gold is that Freeport needs our silica and we need their smelting process. This forms the basis of a beneficial deal for both parties.
In February we announced providing Freeport with a trial shipment of 3,000 tons of low grade ore. This was mainly to determine the suitability of the material as a flux rather than primarily to make money from the sale of gold and silver. Meanwhile, the Freeport-McMoRan smelter was down for about four weeks for maintenance. In order to re-establish a baseline, they had to re-start with their own material. This slowed down the test by nearly two months. The good news is the smelter trial should be completed very soon. Following the test results Dr. Carson and Freeport-McMoRan will negotiate a contract. When completed results will be announced in the form of a press release, most likely before the end of the current quarter.
Meanwhile, revenues booked in 1Q2010 constitute the majority of what we will be paid, with a final payment due in June.
Also noteworthy is that if an agreement can be arranged, we may find some interesting economics in this agreement. Not all of the ore that comes out of the mine is of the highest grade. Some higher and some lower. If we had no option but to mill and process the ore, we would be forced to use all the grades of ore that come out of the mine. However, if we come to agreement with Freeport we can then have our metals extracted from the lower grade ore and reserve our mill for the best ore. This option will reduce wear and tear on the mill, saving money. Further, this also frees milling capacity should we secure another source of ore for the mill.
What is the status of the mill production of our concentrate?
First, what is concentrate? Concentrate is the fine, powdery product of the milling process containing a high percentage of valuable metals. This fine powder containing the gold and silver is then smelted down to produce gold and silver. Our income is based upon the ounces of gold and silver metals contained in this fine powder. Santa Fe Gold does not sell gold or silver. The product we produce and sell is called concentrate, containing gold and silver.
The mill is successfully producing concentrate and the production is ramping up quickly. Increasing amounts of ore will be processed to reach mill capacity, hopefully by year end. In the course of initializing a mill, lower quality ore is first used and as the results improve, better and better ore are processed. Right now the concentrate is accumulating and there are several smelters testing our samples in preparation for a contract offer. Obviously we are looking to maximize the returns on this valuable product and this does involve negotiations and contract discussions. Again, as soon a signed contract is in hand, an announcement will be forthcoming.
We are currently experiencing great success at our mill near Lordsburg, New Mexico. Our powder concentrate is more highly condensed than expected. (Since each drum of powder is therefore more valuable per pound, Santa Fe Gold's shipping costs to the smelter are reduced. Now we can ship our concentrate virtually anywhere in the world to obtain the best price.) At this time there is a voracious appetite in Europe for precious metals. Now with our higher levels of contained metal, we may find that our smelting takes place overseas. Since gold and silver smelting is done on a worldwide basis the competition for our business is therefore in our favor.
Can I visit the mill and the mine?
Now that we are in production, this question is coming in nearly every day. In order to accommodate the numerous requests, an open house/mill commissioning event will be planned as soon as is practical. Investors, shareholders and others will be invited. For the time being, we are focusing on operations and personnel are focused mining and milling of our ore. The interesting point in this is that most mines are neither accessible nor even near the USA. So the fact that you are able to actually reach the operations without passport, helicopter or donkey ride is frankly one of our great strengths. That you can visit the mine is also true of analysts, brokers, investors, investments bankers and institutions alike. Our mill is about 2 ½ hours from the Tucson, Arizona airport. No planning ravel during summer months only (Yukon Territory, Baffinland), no planning on immunizations and security (Congo, Zimbabwe) no planning for language barriers or currency exchange. The ease in visiting our operations is another positive for Santa Fe Gold Corporation.
Recent Activity
Dale Jackson, host of "Money on the Mark", a radio show airing in New York City, will be touring the Santa Fe Gold Corporation Summit silver-gold mine and the Banner mill with Dr. Carson the week of May 24th. Following his visit he will conduct an hour long interview with Dr. Carson, to be broadcast live in New York. The interview will later be archived to our website for you to hear. Dale has decades of experience in the business of radio advertising and investor involvement, having been a stock broker at one time. He has maintained contact with numerous individuals and investors over the years. His first hand visit, followed by the interview, will not only give credibility to investors, but will also serve to inform our shareholder base of the current state of the company. A link will be provided when the interview is complete.
http://www.KITCO.com is a precious metals website known for its news, metal prices and commentaries. Recently, Santa Fe Gold began advertising on KITCO in the form of a banner ad. The one inch by three inch banner ad is right of center near the top. The ad space is part of a rotational system where each of the 20 advertisers receives a 15 second time slot. You can refresh your screen again and again until our banner ad shows up. Or if you scroll down to the bottom of the home page, in the lower left corner, in a faint grey color, you will see our number 6. Refresh until that number appears and you will see our ad! Clicking the banner ad sends you through to our website. We have had numerous hits on our website as a result of this exposure.
Also on KITCO, we are listed on the left side of the home page about 1/3 of the way down in a box titled "Investor Information." Santa Fe Gold is on a rotation there as well, but it is not numbered. When Santa Fe Gold appears, you will find a brief write-up and a place to ask for additional information. We have received many requests from this listing as well.
Dr. Carson's travels to the Eastern USA (Atlanta, New York and Detroit) went well. He had the opportunity to meet with potential investors and renew relationships with existing shareholders. Following that, Dr. Carson spent three days in London at the Rodman and Renshaw Mining Conference, where he was able to speak to numerous institutional investors and individuals about Santa Fe Gold. Although the current share price has not reflected a surge in buying activity, more and more people are 'watching' our stock. This is a pre-cursor to activity, as we are a relatively unknown company at this point.
Another trip is being planned by Dr. Carson to New York and Boston in June as a follow up to the recent activities. Rodman is involved in some of the introductions.
Standard and Poor's manual.
Finally, Santa Fe Gold was recently listed in the Standard & Poor's Market Access Manual. This means that investors worldwide have access to the consistent and independent profile now provided to broker, financial advisors, institutions, traders and self-directed investors. Furthermore, this important listing permits more brokers than ever to recommend our stock without the limitations that some state Blue Sky laws can impose. Our visibility and our marketability have been increased by this enhancement.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico; (ii) the Ortiz gold property in north-central New Mexico, estimated to contain two million ounces of gold; (iii) the Black Canyon mica mine and processing facility near Phoenix, Arizona; and (iv) a large resource of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Monday, May 24, 2010
Undiscovered Equities Top 10 2009 Average Return 168%
Undiscovered Equities, Inc.
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
Undiscovered Equities Top 10 2009 Average Return 168% http://www.undiscoveredequities.com/top_168.html
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
http://www.undiscoveredequities.com/
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
Undiscovered Equities Top 10 2009 Average Return 168% http://www.undiscoveredequities.com/top_168.html
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
http://www.undiscoveredequities.com/
Friday, May 21, 2010
First Commercial Startup of CTI's Proprietary System a Huge Success (OTCBB:CVAT)
LOS ANGELES, May 20 -- Cavitation Technologies, Inc. (CTI) (OTC Bulletin Board: CVAT; Berlin/Stuttgart: WTC) is pleased to announce the startup of its Green D Plus Nano Cavitation Reactor System at a 200 metric ton/day vegetable oil refining facility located in South Carolina. CTI's Nano Cavitation System consists of equipment manufactured to CTI's specifications and operated with proprietary technology. The system is designed for use in refining and processing vegetable oils into edible consumer food products and for other liquids applications and processes.
According to Roman Gordon, CTI's CEO, "We are very pleased with the performance of our system. It has exceeded all our expectations in the first two weeks of its operation. We are excited by the fact that our process during this initial operation reduced and in some cases eliminated the use of certain chemicals. We have also observed substantial improvement in overall performance of the refinery. Due to the successes of this trial, we now have orders for two additional pilot systems."
On January 20, 2010, CTI announced that it had entered into a worldwide licensing and marketing arrangement for its Green D Plus System with Desmet Ballestra, a worldwide leader in the design and delivery of advanced processing systems for vegetable (edible) oil extraction and refining facilities throughout the world. The startup and initial operation of CTI's system at the South Carolina facility is the first commercial deployment of CTI's technology in the vegetable oil industry.
Commenting on the initial results of CTI's system, the General Manager of the South Carolina facility stated, "The results we are getting with the CTI technology are way beyond our expectations."
Tim Kemper, CEO of Desmet Ballestra North America, further commented, "I think this technology really has the potential to be the biggest improvement that the refining industry has seen in decades. We are very pleased with the results."
About Cavitation Technologies
Cavitation Technologies, Inc.; (OTCBB:CVAT.ob - News); is a "Green-Tech" company, established in 2006 to become a world leader in the development of new cutting edge technologies for the: edible oils processing, renewable fuel, petroleum refining, water treatment, wastewater sanitation, petroleum, food, beverage and chemical industries. For additional information please visit: http://www.cavitationtechnologies.com/
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Sincerely,
Kevin McKnight
1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
http://www.undiscoveredequities.com/
According to Roman Gordon, CTI's CEO, "We are very pleased with the performance of our system. It has exceeded all our expectations in the first two weeks of its operation. We are excited by the fact that our process during this initial operation reduced and in some cases eliminated the use of certain chemicals. We have also observed substantial improvement in overall performance of the refinery. Due to the successes of this trial, we now have orders for two additional pilot systems."
On January 20, 2010, CTI announced that it had entered into a worldwide licensing and marketing arrangement for its Green D Plus System with Desmet Ballestra, a worldwide leader in the design and delivery of advanced processing systems for vegetable (edible) oil extraction and refining facilities throughout the world. The startup and initial operation of CTI's system at the South Carolina facility is the first commercial deployment of CTI's technology in the vegetable oil industry.
Commenting on the initial results of CTI's system, the General Manager of the South Carolina facility stated, "The results we are getting with the CTI technology are way beyond our expectations."
Tim Kemper, CEO of Desmet Ballestra North America, further commented, "I think this technology really has the potential to be the biggest improvement that the refining industry has seen in decades. We are very pleased with the results."
About Cavitation Technologies
Cavitation Technologies, Inc.; (OTCBB:CVAT.ob - News); is a "Green-Tech" company, established in 2006 to become a world leader in the development of new cutting edge technologies for the: edible oils processing, renewable fuel, petroleum refining, water treatment, wastewater sanitation, petroleum, food, beverage and chemical industries. For additional information please visit: http://www.cavitationtechnologies.com/
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Sincerely,
Kevin McKnight
1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
http://www.undiscoveredequities.com/
Manas Petroleum announces First Quarter Financial and Operational Results (OTCBB:MNAP)
BAAR, SWITZERLAND, May 21st, 2010
Manas Petroleum Corp. ("Manas") (OTCBB: MNAP) is pleased to report that it has filed on EDGAR and on SEDAR its first quarter report on Form 10-Q. The complete document can be viewed at either www.sedar.com or www.sec.gov.
Highlights:
- Manas realized a transaction with its Albanian project into the TSX-V listed company Petromanas Energy Inc. Manas is holding a strong position in equity and governance.
- In Tajikistan, Manas has finalized around 65% of a 250 KM seismic program as preparation for the upcoming drilling campaign.
- In Kyrgyzstan, drilling preparation has been initiated, drilling location is defined and drill site preparation is planned to commence in Q2.
- In Mongolia, Manas has planned an upcoming gravity survey to prepare a 300 KM seismic campaign on blocks 13 and 14.
- Manas' cash and cash equivalents balance as of end Q1 was $3,236,525. In addition, Manas had cash inflows through the exercise of warrants amounting to about $2,225,000 in Q2.
- Manas is debt free and believes that it will be able to meet with the existing funds the total cash requirements of $5,300,000 planned for the next 12 months.
Results of operations for the three month period ended March 31, 2010 show net income of $83,011,315 ($0.70 per share, basic and $0.62 per share, diluted), as compared to a net loss of $2,209,639 ($0.02 loss per common share, basic and diluted) for the comparable period ended March 31, 2009. This increase is mainly due to the $57,850,918 gain realized from the sale of Manas Adriatic GmbH (the Albanian project) and a change in fair value of investment in associate of $28,812,901.
For the three month period ended March 31, 2010 Manas' operating expenses increased to $3,241,960, as compared to $2,510,438 for the same period in 2009. This 29% increase in total operating expenses is attributable to higher personnel costs and increased consulting fees.
Manas' cash balance as of March 31, 2010 was $3,236,525, of which $935,362 was restricted to bank guarantees for the first phase of the work program in Albania. Hence, actual cash and cash equivalents available to the company amounted to only $2,301,163. However, for the second quarter of 2010, these bank guarantees have been replaced by Petromanas Energy Inc., the new operator of the Albanian project, resulting in the release of Manas' bank guarantee.
Net cash outflow from operating activities of $2,162,485 for the three months ended March 31, 2010 has increased from $1,076,907 in the comparable period for 2009. This increased outflow is mainly due to the settlement of payables of approximately $610,000, increased consulting expenses of approximately $290,000 and the payment of accrued interest in connection with the settlement of debt instruments of approximately $180,000.
Net cash inflow from investing activities was $10,388,802 for the three month period ended March 31, 2010, as compared to a net cash inflow of $2,214,398 during the comparable period for 2009. This increase is mainly due to the proceeds from the sale of Manas Adriatic GmbH of $10,415,810, which comprises net cash proceeds of CAD $2,000,000 ($1,937,396) and $8,500,000 worth of liabilities repaid by Petromanas Energy, and was reduced by $21,586, the cash owned by Manas Adriatic consolidated as of February 24, 2010.
In the corresponding period of 2009 Manas had a cash inflow from the release of a bank guarantee.
Net cash outflow from financing activities of $6,648,300 for the three months ended March 31, 2010 has changed from a net cash outflow of $1,220,000 in the comparable period for 2009. During the three month period ended March 31, 2010, cash outflows resulted from repayment of contingent convertible loans (i.e. $2,000,000), repayment of debentures (i.e. $4,000,000) and repayment of promissory notes to shareholders (i.e. $540,646). In addition, a bank overdraft of $196,154 was settled and proceeds from the exercise of warrants positively affected cash flow from financing activities by $88,500. In the comparable period in 2009, Manas repaid a bank loan of $1,220,000.
Cash Requirements
Manas estimates its cash requirements for the next 12 months as follows:
Expenses / Amount
Geological & Geophysical / 2,500,000
General & Administrative / 2,300,000
Legal / 300,000
Audit / 200,000
Open Commitments / -
Total Expenses planned for next 12 months / 5,300,000
As an operator, Manas has geological and geophysical commitments for the next 12 months in Mongolia amounting to $1,650,000. Manas is expecting to spend in total $2,500,000 for capital expenditures and Geological & Geophysical work.
In Tajikistan the costs for the seismic program are expected to be approximately US $ 3.0 million; these costs are currently being funded by Santos International Ventures Pty Ltd. ("Santos"), a wholly owned subsidiary of Santos Limited (ASX Ltd: STO), which is the operator of the project pursuant to a farm out agreement. In the Kyrgyz Republic, the operational costs including seismic are fully carried by Santos. Also, as Manas is not the operator of the Chilean project, it has no geological or geophysical commitments for that project for the next 12 months. The Albanian investment was sold during the first quarter of 2010 without further financial commitments from Manas.
Manas had cash inflows from financing through the exercise of warrants in the second quarter of 2010 amounting to roughly $2,225,000. In addition, through the release of a bank guarantee, $875,000 became available in the second quarter.
Given the amount of cash and cash equivalents as of March 31, 2010 of $2,301,163, Manas believes that it will be able to meet total cash requirements planned for the next 12 months.
Going Concern
Manas' consolidated financial statements were prepared on the assumption that it would continue as a going concern. For the three months ended March 31, 2010, Manas had net income of $83,011,315, but this was mainly the result of the gain in sale of investment and the change in fair value of an investment in an associate. Manas' net income from inception until March 31, 2010 was $17,211,438, which includes the positive affect of the $57,850,918 gain from the sale of the company's Albania project (Manas Adriatic GmbH) and unrealized gain of $28,812,901 from a change in fair value of the company's investment in Petromanas Energy Inc. (the purchaser of Manas Adriatic GmbH), of which Manas currently owns approximately 30.46%. Without these two positions, the company would actually have had a net loss, calculated from inception until March 31, 2010, of $69,452,381.
The company's cash and cash equivalents balance as of March 31, 2010 was $2,301,163. Based on its estimated cash requirements, it believes that it has sufficient funds to continue its planned operations until April 2011. In order to continue its operations beyond April 2011 and execute on its strategy to develop its assets, the company will require further funds and there can be no assurance that it will be able to source those funds or continue its operations.
Recent Developments
Albania
On February 24, 2010, the company signed a Share Purchase Agreement and completed the sale of all of the issued and outstanding shares of Manas Adriatic, a wholly owned subsidiary of DWM Petroleum AG, to Petromanas Energy Inc., a Canadian company. After the sale, Petromanas Energy Inc., in which Manas currently holds a 30.46% interest, continued ongoing exploration activities at the Albanian project. It has reported that the technical team has finalized the planning of the acquisition of seismic in block E in Albania, calling for the acquisition of approximately 105 KM of 2-D seismic during the summer of 2010 as part of an effort to further define the structural definition of the West Rova, Rova and Papri prospects. If acquired, this would supplement approximately 1300 KM of existing seismic previously acquired by Albpetrol and Coparex and partially reprocessed by Manas' subsidiary, DWM Petroleum AG. The new seismic should fulfill the minimum work commitment of the first exploration period of the Production Sharing Contract for blocks D and E. Petromanas Energy Inc. has released an updated tender for this work based on Manas' 2008 tender for seismic in blocks A, B and D. Several scouting trips were undertaken in order to trace the lines and to define the technology to be applied.
In addition, Petromanas Energy Inc. reports that it has prepared a seismic program for blocks 2 and 3 in order to further define the structural definition of the South Shpiragu 1, South Shpiragu 2 prospects and the Krasi lead. It intends to tie the new seismic in blocks 2 and 3 to the existing Shpiragu well in order to allow a time -- depth correlation of the South Shpiragu prospects.
Kyrgyz Republic
During the first quarter of 2010, South Petroleum Company, in which Manas holds a 25% participating interest, continued its geological studies within its five license areas.
Cameral work
South Petroleum began drafting final reports on the Soh, Tuzluk and West Soh license areas to be submitted in April 2010. Also, South Petroleum processed and analyzed geological-geophysical data of previous work within all license areas.
2D field seismic acquisition
South Petroleum has contracted with the Kazak seismic crew "Dank" to perform further seismic work. As part of the Tajik seismic program during the first quarter of 2010, South Petroleum acquired around 20 KM of 2D seismic lines reaching into the Kyrgyz license area. South Petroleum has fulfilled its seismic commitment in the Tuzluk license area for 2010.
Preparation for drilling operations
South Petroleum is planning to conduct drilling operations within the Nanai license area during 2010. The structure to be tested is the West Ala-Buka prospect. The drilling locations are defined based on seismic work conducted in 2008 and previously acquired seismic data. Preparations were initiated to launch a tender for a drilling contractor. The drilling location has been defined and preparation of the drill site is planned to commence in May 2010.
Tajikistan
Somon Oil, in which Manas holds a 90% interest, contracted with the Kazak crew "Dank" to perform a seismic project which commenced on February 13, 2010. By March 31, 2010, around 65% of the program, consisting of a total of 250 linear kilometers, was finalized.
Chile
Manas signed an agreement dated January 29, 2010, pursuant to which it agreed to assign its interest in its Chilean project in exchange for a return of all of the operational costs invested in that project to date and relief from all currently outstanding and future obligations in respect of the project. Although the transfer contemplated by this agreement has been approved by the Chilean ministry, it continues to be subject to approval by the transferees.
Mongolia
Manas' team of geologists and geophysicists at its office in Ulan Bator has initiated the re-interpretation of existing geological data and is planning an upcoming gravity survey. This is intended to further define the location of lines for the seismic campaign on blocks 13 and 14 which should consist of around 300 linear kilometers. A plan for environmental protection and restoration has been prepared but is subject to the approval of the Ministry of Environment in Mongolia.
Data from a total of 451 existing wells drilled in the Zuunbayan and Tsagaan Els oil field areas and in the company's prospects has been collected. All well data was translated from Russian and Mongolian into English for analysis by international experts.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Manas Petroleum Corp. ("Manas") (OTCBB: MNAP) is pleased to report that it has filed on EDGAR and on SEDAR its first quarter report on Form 10-Q. The complete document can be viewed at either www.sedar.com or www.sec.gov.
Highlights:
- Manas realized a transaction with its Albanian project into the TSX-V listed company Petromanas Energy Inc. Manas is holding a strong position in equity and governance.
- In Tajikistan, Manas has finalized around 65% of a 250 KM seismic program as preparation for the upcoming drilling campaign.
- In Kyrgyzstan, drilling preparation has been initiated, drilling location is defined and drill site preparation is planned to commence in Q2.
- In Mongolia, Manas has planned an upcoming gravity survey to prepare a 300 KM seismic campaign on blocks 13 and 14.
- Manas' cash and cash equivalents balance as of end Q1 was $3,236,525. In addition, Manas had cash inflows through the exercise of warrants amounting to about $2,225,000 in Q2.
- Manas is debt free and believes that it will be able to meet with the existing funds the total cash requirements of $5,300,000 planned for the next 12 months.
Results of operations for the three month period ended March 31, 2010 show net income of $83,011,315 ($0.70 per share, basic and $0.62 per share, diluted), as compared to a net loss of $2,209,639 ($0.02 loss per common share, basic and diluted) for the comparable period ended March 31, 2009. This increase is mainly due to the $57,850,918 gain realized from the sale of Manas Adriatic GmbH (the Albanian project) and a change in fair value of investment in associate of $28,812,901.
For the three month period ended March 31, 2010 Manas' operating expenses increased to $3,241,960, as compared to $2,510,438 for the same period in 2009. This 29% increase in total operating expenses is attributable to higher personnel costs and increased consulting fees.
Manas' cash balance as of March 31, 2010 was $3,236,525, of which $935,362 was restricted to bank guarantees for the first phase of the work program in Albania. Hence, actual cash and cash equivalents available to the company amounted to only $2,301,163. However, for the second quarter of 2010, these bank guarantees have been replaced by Petromanas Energy Inc., the new operator of the Albanian project, resulting in the release of Manas' bank guarantee.
Net cash outflow from operating activities of $2,162,485 for the three months ended March 31, 2010 has increased from $1,076,907 in the comparable period for 2009. This increased outflow is mainly due to the settlement of payables of approximately $610,000, increased consulting expenses of approximately $290,000 and the payment of accrued interest in connection with the settlement of debt instruments of approximately $180,000.
Net cash inflow from investing activities was $10,388,802 for the three month period ended March 31, 2010, as compared to a net cash inflow of $2,214,398 during the comparable period for 2009. This increase is mainly due to the proceeds from the sale of Manas Adriatic GmbH of $10,415,810, which comprises net cash proceeds of CAD $2,000,000 ($1,937,396) and $8,500,000 worth of liabilities repaid by Petromanas Energy, and was reduced by $21,586, the cash owned by Manas Adriatic consolidated as of February 24, 2010.
In the corresponding period of 2009 Manas had a cash inflow from the release of a bank guarantee.
Net cash outflow from financing activities of $6,648,300 for the three months ended March 31, 2010 has changed from a net cash outflow of $1,220,000 in the comparable period for 2009. During the three month period ended March 31, 2010, cash outflows resulted from repayment of contingent convertible loans (i.e. $2,000,000), repayment of debentures (i.e. $4,000,000) and repayment of promissory notes to shareholders (i.e. $540,646). In addition, a bank overdraft of $196,154 was settled and proceeds from the exercise of warrants positively affected cash flow from financing activities by $88,500. In the comparable period in 2009, Manas repaid a bank loan of $1,220,000.
Cash Requirements
Manas estimates its cash requirements for the next 12 months as follows:
Expenses / Amount
Geological & Geophysical / 2,500,000
General & Administrative / 2,300,000
Legal / 300,000
Audit / 200,000
Open Commitments / -
Total Expenses planned for next 12 months / 5,300,000
As an operator, Manas has geological and geophysical commitments for the next 12 months in Mongolia amounting to $1,650,000. Manas is expecting to spend in total $2,500,000 for capital expenditures and Geological & Geophysical work.
In Tajikistan the costs for the seismic program are expected to be approximately US $ 3.0 million; these costs are currently being funded by Santos International Ventures Pty Ltd. ("Santos"), a wholly owned subsidiary of Santos Limited (ASX Ltd: STO), which is the operator of the project pursuant to a farm out agreement. In the Kyrgyz Republic, the operational costs including seismic are fully carried by Santos. Also, as Manas is not the operator of the Chilean project, it has no geological or geophysical commitments for that project for the next 12 months. The Albanian investment was sold during the first quarter of 2010 without further financial commitments from Manas.
Manas had cash inflows from financing through the exercise of warrants in the second quarter of 2010 amounting to roughly $2,225,000. In addition, through the release of a bank guarantee, $875,000 became available in the second quarter.
Given the amount of cash and cash equivalents as of March 31, 2010 of $2,301,163, Manas believes that it will be able to meet total cash requirements planned for the next 12 months.
Going Concern
Manas' consolidated financial statements were prepared on the assumption that it would continue as a going concern. For the three months ended March 31, 2010, Manas had net income of $83,011,315, but this was mainly the result of the gain in sale of investment and the change in fair value of an investment in an associate. Manas' net income from inception until March 31, 2010 was $17,211,438, which includes the positive affect of the $57,850,918 gain from the sale of the company's Albania project (Manas Adriatic GmbH) and unrealized gain of $28,812,901 from a change in fair value of the company's investment in Petromanas Energy Inc. (the purchaser of Manas Adriatic GmbH), of which Manas currently owns approximately 30.46%. Without these two positions, the company would actually have had a net loss, calculated from inception until March 31, 2010, of $69,452,381.
The company's cash and cash equivalents balance as of March 31, 2010 was $2,301,163. Based on its estimated cash requirements, it believes that it has sufficient funds to continue its planned operations until April 2011. In order to continue its operations beyond April 2011 and execute on its strategy to develop its assets, the company will require further funds and there can be no assurance that it will be able to source those funds or continue its operations.
Recent Developments
Albania
On February 24, 2010, the company signed a Share Purchase Agreement and completed the sale of all of the issued and outstanding shares of Manas Adriatic, a wholly owned subsidiary of DWM Petroleum AG, to Petromanas Energy Inc., a Canadian company. After the sale, Petromanas Energy Inc., in which Manas currently holds a 30.46% interest, continued ongoing exploration activities at the Albanian project. It has reported that the technical team has finalized the planning of the acquisition of seismic in block E in Albania, calling for the acquisition of approximately 105 KM of 2-D seismic during the summer of 2010 as part of an effort to further define the structural definition of the West Rova, Rova and Papri prospects. If acquired, this would supplement approximately 1300 KM of existing seismic previously acquired by Albpetrol and Coparex and partially reprocessed by Manas' subsidiary, DWM Petroleum AG. The new seismic should fulfill the minimum work commitment of the first exploration period of the Production Sharing Contract for blocks D and E. Petromanas Energy Inc. has released an updated tender for this work based on Manas' 2008 tender for seismic in blocks A, B and D. Several scouting trips were undertaken in order to trace the lines and to define the technology to be applied.
In addition, Petromanas Energy Inc. reports that it has prepared a seismic program for blocks 2 and 3 in order to further define the structural definition of the South Shpiragu 1, South Shpiragu 2 prospects and the Krasi lead. It intends to tie the new seismic in blocks 2 and 3 to the existing Shpiragu well in order to allow a time -- depth correlation of the South Shpiragu prospects.
Kyrgyz Republic
During the first quarter of 2010, South Petroleum Company, in which Manas holds a 25% participating interest, continued its geological studies within its five license areas.
Cameral work
South Petroleum began drafting final reports on the Soh, Tuzluk and West Soh license areas to be submitted in April 2010. Also, South Petroleum processed and analyzed geological-geophysical data of previous work within all license areas.
2D field seismic acquisition
South Petroleum has contracted with the Kazak seismic crew "Dank" to perform further seismic work. As part of the Tajik seismic program during the first quarter of 2010, South Petroleum acquired around 20 KM of 2D seismic lines reaching into the Kyrgyz license area. South Petroleum has fulfilled its seismic commitment in the Tuzluk license area for 2010.
Preparation for drilling operations
South Petroleum is planning to conduct drilling operations within the Nanai license area during 2010. The structure to be tested is the West Ala-Buka prospect. The drilling locations are defined based on seismic work conducted in 2008 and previously acquired seismic data. Preparations were initiated to launch a tender for a drilling contractor. The drilling location has been defined and preparation of the drill site is planned to commence in May 2010.
Tajikistan
Somon Oil, in which Manas holds a 90% interest, contracted with the Kazak crew "Dank" to perform a seismic project which commenced on February 13, 2010. By March 31, 2010, around 65% of the program, consisting of a total of 250 linear kilometers, was finalized.
Chile
Manas signed an agreement dated January 29, 2010, pursuant to which it agreed to assign its interest in its Chilean project in exchange for a return of all of the operational costs invested in that project to date and relief from all currently outstanding and future obligations in respect of the project. Although the transfer contemplated by this agreement has been approved by the Chilean ministry, it continues to be subject to approval by the transferees.
Mongolia
Manas' team of geologists and geophysicists at its office in Ulan Bator has initiated the re-interpretation of existing geological data and is planning an upcoming gravity survey. This is intended to further define the location of lines for the seismic campaign on blocks 13 and 14 which should consist of around 300 linear kilometers. A plan for environmental protection and restoration has been prepared but is subject to the approval of the Ministry of Environment in Mongolia.
Data from a total of 451 existing wells drilled in the Zuunbayan and Tsagaan Els oil field areas and in the company's prospects has been collected. All well data was translated from Russian and Mongolian into English for analysis by international experts.
Undiscovered Equities is currently offering a trial subscription. For more information please call 1-800-404-8982 or visit our website at www.undiscoveredequities.com
Sincerely,
Kevin McKnight
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
www.undiscoveredequities.com
Wednesday, May 19, 2010
Undiscovered Equities Top 10 Picks for 2010
Undiscovered Equities, Inc.
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
As promised, we at Undiscovered Equities would like to take this opportunity to showcase our top 10 investment opportunities for 2010. Last year we urged our subscribers to ignore the nervousness of the times and take advantage of the opportunity that the period of forced liquidation created. As our results show, it proved to be, as Warren Buffett said, “one of the greatest buying opportunities of our lifetime.” Our advice to our subscribers this year is to remain patient, have a long term outlook and continue to invest in great businesses: ones that can make huge profits and grow dramatically even in today’s economic environment. Looking ahead we expect that the market for crude oil will continue to grow, especially as certain areas of the world such as India and China continue to modernize. We feel that oil prices will trade in a range between $66 and $90 per barrel. This year however we are avoiding domestic natural gas exploration plays as we believe gas prices will remain under pressure due to the recent robust shale finds and the challenging US economic environment. In the past we have focused primarily on the energy sector, but this year we have chosen to diversify as several extraordinary opportunities have captured our attention. We expect these 10 stocks to outperform in the New Year and as always it is important to keep some cash in reserves for extraordinary opportunities.
All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!
Endeavour Financial (TSX: EDV) $1.77 Ironically, we were introduced to Endeavour through their interest in Manas Petroleum’s giant concessions in Albania. TSX Listed Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies. Many resource investors know the Vancouver based financier Frank Giustra. Endeavour is Giustra’s most public investment vehicle and together they have been behind some of the biggest wins in the resource market this decade, including Wheaton River Gold, Northern Orion Resources and Urasia Energy. Endeavour’s track record has been impeccable, and we think they will continue to produce significant returns for their shareholders for years to come. We also feel that the continued weakness in the dollar will add to Endeavour’s success.
Environmental Infrastructure Holdings Corp. (OTC BB: EIHC) $0.26 Environmental Infrastructure Holdings (EIHC) is the parent company of various environmental manufacturing, engineering, and services companies. Currently, EIHC has two subsidiaries Equisol, LLC and Xiom Corp. as well as investments into various joint ventures and partnerships. Recognized in 2008 by INC Magazine as the 7th fastest growing private Environmental Services Company in America, Equisol, LLC, is a unique equipment solutions provider specializing in the water and wastewater industry. Their team of top rated engineers specializes in automation equipment and services across multiple industries where water use and automation are important. From consulting and design of equipment systems, to sales, installation and maintenance services, Equisol can address their customer's needs in many diverse applications. Equisol provides cost effective equipment strategies to allow users of water and producers of wastewater to achieve profitability while focusing on their core business activities. Through Equisol's association with world technology leaders, they are able to supply a broad spectrum of high quality products. Their staff, with over 300 years of engineering experience in equipment automation, uses these technologies to select the most effective solution for their customer's applications. Other recognition that Equisol has achieved include the Entrepreneur Hot 100 Fastest New Companies in 2004, INC5000 ranking of #621 for 2007, and 2009 Philadelphia 100 recognizing the fastest growing private companies in the region. Xiom Corp. is a technology business offering delivery of plastic powder coatings at on-site locations utilizing the XIOM 1000 System. Powder coating currently is a process in which metal parts are brought into a factory environment where they are cleaned and prepared to receive a powder coating. Plastic in powder form is then applied to the various metal parts by means of an electrostatic charge that causes the powder to adhere to the surface. The coated part is then heated in an oven for a period of time to cause the plastic to melt and adhere to the substrate. Although they use plastic powder, they do not electro-statically charge that powder in order for it to adhere to a substrate. Xiom uses a different mechanism which simultaneously applies and fuses the powder to a substrate. The advantage of this process is that the coating process is totally portable and can be applied anywhere, not necessarily in a factory setting, and can be applied without use of an oven to cure the coating, and can be applied to most substrates in addition to the metal substrate to which powder coatings are traditionally applied in a factory, using an oven. The CEO of the combined entities, Mr. Michael Parrish has extensive operational and general management experience; his focus is on financial performance and strategic alliances. Prior to running Equisol, Mr. Parrish held various executive positions in several General Electric Companies where he served in positions such as General Manager for global logistics and services for GE’s Water business, and, earlier, as Managing Director for GE Capital specializing in ecommerce, six sigma, and productivity of several of GE’s equipment management groups. Prior to GE, Mr. Parrish served for 14 years active duty in the U.S. Army where he held various leadership positions of increasing responsibility as an Army Aviator culminating as a member of the Army Acquisition Corps. Mr. Parrish has a Bachelor’s degree in Engineering from the U.S. Military Academy at West Point as well as a Masters degree in Astronautically Engineering from Stanford University and an MBA with honors from the Wharton School at the University of Pennsylvania. He is the current President of the West Point Society of Philadelphia and serves on the boards of the USO of SE PA/NJ and the Delaware Valley Industrial Resources Council. We think this company is extremely undervalued given the fact that the applications for Xiom's products are virtually endless. With the addition of Mike Parish and the Equisol team we believe revenues will grow dramatically in 2010.
Far East Energy Corporation (OTC BB: FEEC) $0.46 Houston, Texas based Far East Energy Corporation together with its subsidiaries, focuses on the exploration, development, production, and sale of coalbed methane gas (CBM) in the People's Republic of China. The company owns interests in three production sharing contracts, which cover the 485,000-acre Shouyang Block in Shanxi Province; the 573,000-acre Qinnan Block in Shanxi Province; and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province. Far East Energy has formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer. In addition Far East recently announced that gas production from the Shouyang Block in the Shouyang Block of Shanxi Province, China, has begun and is accelerating rapidly. The Shanxi project in full development has the potential to become one of the largest CBM projects in the world. In a country that desperately needs clean energy sources, Far East Energy has the potential to produce between 10 and 20 TFC of natural gas. It is also important to note that the price of natural gas in China has gone up over the last 3 years as opposed to the US where prices have plummeted. We have been following Far East for quite some time and now more than ever we are aggressive buyers.
Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE) $5.74 Gran Tierra Energy, Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. Current production from operations exceeds 13,000 BOPD net after royalty. The Company recently announced a capital spending program of $195 million in 2010 for exploration and production that includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Gran Tierra Energy had $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand. This is a very strong well run company and we feel they will continue to drill economic wells as they enter next year with the largest exploration drilling program in the company's history.
Houston American Energy Corp. (Nasdaq: HUSA) $6.13 Houston American Energy Corp. is an oil and gas exploration and production company whose activities are focused on several concessions in the South American country of Colombia. Houston American continues to generate strong operating cash flow from their production base in Colombia with their interest in the Hupecol project which is currently producing over 850 net barrels of oil per day and growing. In 2009, Houston American recently added 2 extremely valuable assets to their portfolio of properties. The Company partnered up with SK Energy Co. LTD to develop the highly prolific CPO 4 Block covering 345,452 acres which is situated along the productive western margin of the Llanos Basin in Colombia. Houston American now controls 25% of the CPO 4 Block which encompasses the same structure as the Corcel block where well rates of between 2,000 and 10,000 barrels of oil per day have recently been announced. SK Energy believes the CPO 4 Block has over 100 viable drilling locations with estimated recoverable reserves of 1-4 billion barrels. A 3-D seismic program is ongoing. In 2009 Houston American also inked a substantial farmout agreement with Shona Energy (Colombia) LTD. to earn a 12.5% interest in the Serrania Block, which is adjacent to the recent Ombu discovery which contains an estimated 1 billion barrels of oil in place. With the largest exploration budget in its history approved and funded Houston American enters 2010 with considerable momentum and we feel the stock will break out to new levels.
Hyperdynamics Corporation (NYSE Amex: HDY) $0.88 Sugar Land, Texas based Hyperdynamics Corporation engages in the exploration and production of oil and gas in West Africa. It holds certain contract rights for the exploration and exploitation of oil and gas in an approximately 80,000 square kilometer concession off the coast of the Republic of Guinea. The last several months have been very exciting for Hyperdynamics as they have partnered up with 2 very strong and capable companies. First Hyperdynamics signed a binding sale and purchase agreement (S&PA) with Aberdeen, Scotland, based Dana Petroleum PLC under which Dana has agreed to acquire a 23 percent participating interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $19.6 million. In addition Hyperdynamics has signed an agreement for exclusive dealing and letter of intent (the "LOI") with Spain's largest oil company Repsol YPF, S.A. (BMAD: REP and NYSE: REP) under which the two companies will negotiate the assignment to Repsol a 37 percent interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $31.5 million. Repsol also would be the operator of the Guinea project. Ray Leonard, Hyperdynamics President and Chief Executive Officer, said, "Dana Petroleum and Repsol bring significant experience to jointly explore our concession in Northwest Africa, as Repsol and Dana have successfully partnered in the past on exploration projects in Northwest Africa. "Assuming we reach definitive agreements with Repsol, Hyperdynamics will retain a 40 percent working interest in the Guinea concession and will be in a stronger financial position, with more than $51 million upon the entry into full legal effect of the production sharing contract clarification to fund our share of 3D seismic and drilling required during the exploratory period. We look forward to working with both companies to explore and develop this large, highly prospective offshore tract." If successful, we feel this company has potential to grow into a multibillion dollar company.
ICOP Digital, Inc. (Nasdaq: ICOP) $0.44 ICOP Digital, Inc. is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors improve security, reduce losses, and mitigate risks through the capture, live streaming and secure management of high quality video and audio. ICOP has already penetrated law enforcement markets in 49 states, as well as key international markets, including Mexico and Saudi Arabia. ICOP Digital is currently the only approved vendor of in-car video equipment for the Kingdom of Saudi Arabia, contracted through their Ministry of Interior. We estimate the market in Saudi Arabia to be over 100,000 security vehicles and feel ICOP has great potential to capture this and other key markets in the Middle East. A few domestic clients include Alaska State Troopers, Wyoming State Troopers, Mobile Police Department in Alabama, and Hartford Police Department in Connecticut. ICOP's products have proven to be of the utmost caliber of quality in the industry, as Raytheon recently signed a 5 year agreement to sell ICOP products worldwide. We believe this to be a game changing event for the company and partnering up with Raytheon will open up significant markets to ICOP's array of products. Globally, security continues to be a major concern, and video is proving to be a key component in the growth of the security industry. We believe significant monies will be spent to modernize current systems, worldwide. Therefore, we believe 2010 will be a breakout year for ICOP.
InterOil Corporation (NYSE: IOC) $77.07 InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. Congratulations to all longs as 2009 has been a truly spectacular year for the company. With 2 world record breaking wells in Antelope we wonder what Phil will do for an encore in 2010. Although the stock price has moved significantly higher we still feel there are many short and long term catalysts that will propel InterOil to new levels. Some near term examples of the upside here are possible deals announced per China, India, Japan, etc., a possible oil find announcement, further news on the proposed condensate plant, and additional analyst coverage.
Manas Petroleum (OTC BB: MNAP) $0.55 Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America. Since inception, Manas has acquired a spectacular portfolio of high impact exploration properties. In keeping with their philosophy of building a strong and enduring resource base, earlier in 2009 Manas added blocks 2 and 3 in Albania, blocks 13 and 14 in Mongolia and the Western blocks in Tajikistan, expanding their portfolio from 11 to 16 blocks in 5 countries; we now believe that Manas controls in excess of 4 Billion Barrels of Recoverable Oil. Every one of the Company’s giant projects are moving forward and maturing toward production. In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra. We believe this is an excellent transaction for Manas as it will create significant shareholder value moving forward. The closing is expected to be completed during the first several weeks of the New Year. In Kyrgyzstan, Manas has signed a $54 million USD farm-out agreement with Santos LTD ADR, covering 1.2 billion barrels in place (Scott Pickford, 2005). Santos will continue to drill with Manas on their 6 shallow and deep well program in 2010. Manas' Development of its license in Tajikistan is now covered by an option farm-in agreement with Santos, where a seismic program is moving forward. In Mongolia Manas will expand their exploration with a seismic campaign to encompass approximately 20, 000 square kilometers. Additionally, to expose Manas to a much larger and more sophisticated audience, the Company is continuing to take the necessary steps to become listed on the TSX Venture stock exchange. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities and surely this company has the greatest upside potential on our list.
Nutra Pharma Corporation (OTC BB: NPHC) $0.35 Nutra Pharma Corporation was founded in 2000 and is based in Plantation, Florida. The company, through its subsidiaries, operates as a biotechnology company specializing in the acquisition, licensing, and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, pain, autoimmune, and infectious diseases. Nutra Pharma's wholly-owned drug discovery subsidiary, ReceptoPharm, is developing proprietary therapeutic protein products primarily for the prevention and treatment of viral and neurological diseases, including Multiple Sclerosis (MS), Adrenomyeloneuropathy (AMN), and Human Immunodeficiency Virus (HIV), and pain in humans. Additionally, ReceptoPharm provides contract research services through its ISO class 5 and GMP certified facilities. The Company recently launched an Over-The-Counter (OTC) Treatment for Stage 2 (Moderate to Severe) Chronic Pain called Cobroxin. Cobroxin is the first OTC pain reliever clinically proven to treat Stage 2 (moderate to severe) chronic pain and is available as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps and neuralgia and as a topical gel for treating repetitive stress, arthritis, and joint pain. Nutra Pharma also has formulated a higher dose pharmaceutical grade treatment for stage 3 (severe) pain called Nyloxin. Nyloxin Oral Spray is an oral formulation of diluted cobra venom prepared according to the requirements of the Homeopathic Pharmacopoeia of the United States (HPUS) and its supporting texts. What really drew us to this company is the exceptional management team lead by CEO Rik J Deitsch. With sales of Cobroxin ramping up, Nutra Pharma appears to be well on the way to becoming a major success. Undiscovered Equities is currently offering a complimentary trial subscription.
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Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
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As promised, we at Undiscovered Equities would like to take this opportunity to showcase our top 10 investment opportunities for 2010. Last year we urged our subscribers to ignore the nervousness of the times and take advantage of the opportunity that the period of forced liquidation created. As our results show, it proved to be, as Warren Buffett said, “one of the greatest buying opportunities of our lifetime.” Our advice to our subscribers this year is to remain patient, have a long term outlook and continue to invest in great businesses: ones that can make huge profits and grow dramatically even in today’s economic environment. Looking ahead we expect that the market for crude oil will continue to grow, especially as certain areas of the world such as India and China continue to modernize. We feel that oil prices will trade in a range between $66 and $90 per barrel. This year however we are avoiding domestic natural gas exploration plays as we believe gas prices will remain under pressure due to the recent robust shale finds and the challenging US economic environment. In the past we have focused primarily on the energy sector, but this year we have chosen to diversify as several extraordinary opportunities have captured our attention. We expect these 10 stocks to outperform in the New Year and as always it is important to keep some cash in reserves for extraordinary opportunities.
All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!
Endeavour Financial (TSX: EDV) $1.77 Ironically, we were introduced to Endeavour through their interest in Manas Petroleum’s giant concessions in Albania. TSX Listed Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies. Many resource investors know the Vancouver based financier Frank Giustra. Endeavour is Giustra’s most public investment vehicle and together they have been behind some of the biggest wins in the resource market this decade, including Wheaton River Gold, Northern Orion Resources and Urasia Energy. Endeavour’s track record has been impeccable, and we think they will continue to produce significant returns for their shareholders for years to come. We also feel that the continued weakness in the dollar will add to Endeavour’s success.
Environmental Infrastructure Holdings Corp. (OTC BB: EIHC) $0.26 Environmental Infrastructure Holdings (EIHC) is the parent company of various environmental manufacturing, engineering, and services companies. Currently, EIHC has two subsidiaries Equisol, LLC and Xiom Corp. as well as investments into various joint ventures and partnerships. Recognized in 2008 by INC Magazine as the 7th fastest growing private Environmental Services Company in America, Equisol, LLC, is a unique equipment solutions provider specializing in the water and wastewater industry. Their team of top rated engineers specializes in automation equipment and services across multiple industries where water use and automation are important. From consulting and design of equipment systems, to sales, installation and maintenance services, Equisol can address their customer's needs in many diverse applications. Equisol provides cost effective equipment strategies to allow users of water and producers of wastewater to achieve profitability while focusing on their core business activities. Through Equisol's association with world technology leaders, they are able to supply a broad spectrum of high quality products. Their staff, with over 300 years of engineering experience in equipment automation, uses these technologies to select the most effective solution for their customer's applications. Other recognition that Equisol has achieved include the Entrepreneur Hot 100 Fastest New Companies in 2004, INC5000 ranking of #621 for 2007, and 2009 Philadelphia 100 recognizing the fastest growing private companies in the region. Xiom Corp. is a technology business offering delivery of plastic powder coatings at on-site locations utilizing the XIOM 1000 System. Powder coating currently is a process in which metal parts are brought into a factory environment where they are cleaned and prepared to receive a powder coating. Plastic in powder form is then applied to the various metal parts by means of an electrostatic charge that causes the powder to adhere to the surface. The coated part is then heated in an oven for a period of time to cause the plastic to melt and adhere to the substrate. Although they use plastic powder, they do not electro-statically charge that powder in order for it to adhere to a substrate. Xiom uses a different mechanism which simultaneously applies and fuses the powder to a substrate. The advantage of this process is that the coating process is totally portable and can be applied anywhere, not necessarily in a factory setting, and can be applied without use of an oven to cure the coating, and can be applied to most substrates in addition to the metal substrate to which powder coatings are traditionally applied in a factory, using an oven. The CEO of the combined entities, Mr. Michael Parrish has extensive operational and general management experience; his focus is on financial performance and strategic alliances. Prior to running Equisol, Mr. Parrish held various executive positions in several General Electric Companies where he served in positions such as General Manager for global logistics and services for GE’s Water business, and, earlier, as Managing Director for GE Capital specializing in ecommerce, six sigma, and productivity of several of GE’s equipment management groups. Prior to GE, Mr. Parrish served for 14 years active duty in the U.S. Army where he held various leadership positions of increasing responsibility as an Army Aviator culminating as a member of the Army Acquisition Corps. Mr. Parrish has a Bachelor’s degree in Engineering from the U.S. Military Academy at West Point as well as a Masters degree in Astronautically Engineering from Stanford University and an MBA with honors from the Wharton School at the University of Pennsylvania. He is the current President of the West Point Society of Philadelphia and serves on the boards of the USO of SE PA/NJ and the Delaware Valley Industrial Resources Council. We think this company is extremely undervalued given the fact that the applications for Xiom's products are virtually endless. With the addition of Mike Parish and the Equisol team we believe revenues will grow dramatically in 2010.
Far East Energy Corporation (OTC BB: FEEC) $0.46 Houston, Texas based Far East Energy Corporation together with its subsidiaries, focuses on the exploration, development, production, and sale of coalbed methane gas (CBM) in the People's Republic of China. The company owns interests in three production sharing contracts, which cover the 485,000-acre Shouyang Block in Shanxi Province; the 573,000-acre Qinnan Block in Shanxi Province; and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province. Far East Energy has formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer. In addition Far East recently announced that gas production from the Shouyang Block in the Shouyang Block of Shanxi Province, China, has begun and is accelerating rapidly. The Shanxi project in full development has the potential to become one of the largest CBM projects in the world. In a country that desperately needs clean energy sources, Far East Energy has the potential to produce between 10 and 20 TFC of natural gas. It is also important to note that the price of natural gas in China has gone up over the last 3 years as opposed to the US where prices have plummeted. We have been following Far East for quite some time and now more than ever we are aggressive buyers.
Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE) $5.74 Gran Tierra Energy, Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. Current production from operations exceeds 13,000 BOPD net after royalty. The Company recently announced a capital spending program of $195 million in 2010 for exploration and production that includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Gran Tierra Energy had $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand. This is a very strong well run company and we feel they will continue to drill economic wells as they enter next year with the largest exploration drilling program in the company's history.
Houston American Energy Corp. (Nasdaq: HUSA) $6.13 Houston American Energy Corp. is an oil and gas exploration and production company whose activities are focused on several concessions in the South American country of Colombia. Houston American continues to generate strong operating cash flow from their production base in Colombia with their interest in the Hupecol project which is currently producing over 850 net barrels of oil per day and growing. In 2009, Houston American recently added 2 extremely valuable assets to their portfolio of properties. The Company partnered up with SK Energy Co. LTD to develop the highly prolific CPO 4 Block covering 345,452 acres which is situated along the productive western margin of the Llanos Basin in Colombia. Houston American now controls 25% of the CPO 4 Block which encompasses the same structure as the Corcel block where well rates of between 2,000 and 10,000 barrels of oil per day have recently been announced. SK Energy believes the CPO 4 Block has over 100 viable drilling locations with estimated recoverable reserves of 1-4 billion barrels. A 3-D seismic program is ongoing. In 2009 Houston American also inked a substantial farmout agreement with Shona Energy (Colombia) LTD. to earn a 12.5% interest in the Serrania Block, which is adjacent to the recent Ombu discovery which contains an estimated 1 billion barrels of oil in place. With the largest exploration budget in its history approved and funded Houston American enters 2010 with considerable momentum and we feel the stock will break out to new levels.
Hyperdynamics Corporation (NYSE Amex: HDY) $0.88 Sugar Land, Texas based Hyperdynamics Corporation engages in the exploration and production of oil and gas in West Africa. It holds certain contract rights for the exploration and exploitation of oil and gas in an approximately 80,000 square kilometer concession off the coast of the Republic of Guinea. The last several months have been very exciting for Hyperdynamics as they have partnered up with 2 very strong and capable companies. First Hyperdynamics signed a binding sale and purchase agreement (S&PA) with Aberdeen, Scotland, based Dana Petroleum PLC under which Dana has agreed to acquire a 23 percent participating interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $19.6 million. In addition Hyperdynamics has signed an agreement for exclusive dealing and letter of intent (the "LOI") with Spain's largest oil company Repsol YPF, S.A. (BMAD: REP and NYSE: REP) under which the two companies will negotiate the assignment to Repsol a 37 percent interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $31.5 million. Repsol also would be the operator of the Guinea project. Ray Leonard, Hyperdynamics President and Chief Executive Officer, said, "Dana Petroleum and Repsol bring significant experience to jointly explore our concession in Northwest Africa, as Repsol and Dana have successfully partnered in the past on exploration projects in Northwest Africa. "Assuming we reach definitive agreements with Repsol, Hyperdynamics will retain a 40 percent working interest in the Guinea concession and will be in a stronger financial position, with more than $51 million upon the entry into full legal effect of the production sharing contract clarification to fund our share of 3D seismic and drilling required during the exploratory period. We look forward to working with both companies to explore and develop this large, highly prospective offshore tract." If successful, we feel this company has potential to grow into a multibillion dollar company.
ICOP Digital, Inc. (Nasdaq: ICOP) $0.44 ICOP Digital, Inc. is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors improve security, reduce losses, and mitigate risks through the capture, live streaming and secure management of high quality video and audio. ICOP has already penetrated law enforcement markets in 49 states, as well as key international markets, including Mexico and Saudi Arabia. ICOP Digital is currently the only approved vendor of in-car video equipment for the Kingdom of Saudi Arabia, contracted through their Ministry of Interior. We estimate the market in Saudi Arabia to be over 100,000 security vehicles and feel ICOP has great potential to capture this and other key markets in the Middle East. A few domestic clients include Alaska State Troopers, Wyoming State Troopers, Mobile Police Department in Alabama, and Hartford Police Department in Connecticut. ICOP's products have proven to be of the utmost caliber of quality in the industry, as Raytheon recently signed a 5 year agreement to sell ICOP products worldwide. We believe this to be a game changing event for the company and partnering up with Raytheon will open up significant markets to ICOP's array of products. Globally, security continues to be a major concern, and video is proving to be a key component in the growth of the security industry. We believe significant monies will be spent to modernize current systems, worldwide. Therefore, we believe 2010 will be a breakout year for ICOP.
InterOil Corporation (NYSE: IOC) $77.07 InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. Congratulations to all longs as 2009 has been a truly spectacular year for the company. With 2 world record breaking wells in Antelope we wonder what Phil will do for an encore in 2010. Although the stock price has moved significantly higher we still feel there are many short and long term catalysts that will propel InterOil to new levels. Some near term examples of the upside here are possible deals announced per China, India, Japan, etc., a possible oil find announcement, further news on the proposed condensate plant, and additional analyst coverage.
Manas Petroleum (OTC BB: MNAP) $0.55 Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America. Since inception, Manas has acquired a spectacular portfolio of high impact exploration properties. In keeping with their philosophy of building a strong and enduring resource base, earlier in 2009 Manas added blocks 2 and 3 in Albania, blocks 13 and 14 in Mongolia and the Western blocks in Tajikistan, expanding their portfolio from 11 to 16 blocks in 5 countries; we now believe that Manas controls in excess of 4 Billion Barrels of Recoverable Oil. Every one of the Company’s giant projects are moving forward and maturing toward production. In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra. We believe this is an excellent transaction for Manas as it will create significant shareholder value moving forward. The closing is expected to be completed during the first several weeks of the New Year. In Kyrgyzstan, Manas has signed a $54 million USD farm-out agreement with Santos LTD ADR, covering 1.2 billion barrels in place (Scott Pickford, 2005). Santos will continue to drill with Manas on their 6 shallow and deep well program in 2010. Manas' Development of its license in Tajikistan is now covered by an option farm-in agreement with Santos, where a seismic program is moving forward. In Mongolia Manas will expand their exploration with a seismic campaign to encompass approximately 20, 000 square kilometers. Additionally, to expose Manas to a much larger and more sophisticated audience, the Company is continuing to take the necessary steps to become listed on the TSX Venture stock exchange. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities and surely this company has the greatest upside potential on our list.
Nutra Pharma Corporation (OTC BB: NPHC) $0.35 Nutra Pharma Corporation was founded in 2000 and is based in Plantation, Florida. The company, through its subsidiaries, operates as a biotechnology company specializing in the acquisition, licensing, and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, pain, autoimmune, and infectious diseases. Nutra Pharma's wholly-owned drug discovery subsidiary, ReceptoPharm, is developing proprietary therapeutic protein products primarily for the prevention and treatment of viral and neurological diseases, including Multiple Sclerosis (MS), Adrenomyeloneuropathy (AMN), and Human Immunodeficiency Virus (HIV), and pain in humans. Additionally, ReceptoPharm provides contract research services through its ISO class 5 and GMP certified facilities. The Company recently launched an Over-The-Counter (OTC) Treatment for Stage 2 (Moderate to Severe) Chronic Pain called Cobroxin. Cobroxin is the first OTC pain reliever clinically proven to treat Stage 2 (moderate to severe) chronic pain and is available as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps and neuralgia and as a topical gel for treating repetitive stress, arthritis, and joint pain. Nutra Pharma also has formulated a higher dose pharmaceutical grade treatment for stage 3 (severe) pain called Nyloxin. Nyloxin Oral Spray is an oral formulation of diluted cobra venom prepared according to the requirements of the Homeopathic Pharmacopoeia of the United States (HPUS) and its supporting texts. What really drew us to this company is the exceptional management team lead by CEO Rik J Deitsch. With sales of Cobroxin ramping up, Nutra Pharma appears to be well on the way to becoming a major success. Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212 Boca Raton, FL 33432
http://www.undiscoveredequities.com/
Tuesday, May 18, 2010
Undiscovered Equities Top 10 2009 Average Return 168%
Undiscovered Equities, Inc.
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
Undiscovered Equities Top 10 2009 Average Return 168% http://www.undiscoveredequities.com/top_168.html
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
http://www.undiscoveredequities.com/
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
Undiscovered Equities Top 10 2009 Average Return 168% http://www.undiscoveredequities.com/top_168.html
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
http://www.undiscoveredequities.com/
Undiscovered Equities Top 10 Picks for 2010
Undiscovered Equities, Inc.
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
As promised, we at Undiscovered Equities would like to take this opportunity to showcase our top 10 investment opportunities for 2010. Last year we urged our subscribers to ignore the nervousness of the times and take advantage of the opportunity that the period of forced liquidation created. As our results show, it proved to be, as Warren Buffett said, “one of the greatest buying opportunities of our lifetime.” Our advice to our subscribers this year is to remain patient, have a long term outlook and continue to invest in great businesses: ones that can make huge profits and grow dramatically even in today’s economic environment. Looking ahead we expect that the market for crude oil will continue to grow, especially as certain areas of the world such as India and China continue to modernize. We feel that oil prices will trade in a range between $66 and $90 per barrel. This year however we are avoiding domestic natural gas exploration plays as we believe gas prices will remain under pressure due to the recent robust shale finds and the challenging US economic environment. In the past we have focused primarily on the energy sector, but this year we have chosen to diversify as several extraordinary opportunities have captured our attention. We expect these 10 stocks to outperform in the New Year and as always it is important to keep some cash in reserves for extraordinary opportunities.
All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!
Endeavour Financial (TSX: EDV) $1.77 Ironically, we were introduced to Endeavour through their interest in Manas Petroleum’s giant concessions in Albania. TSX Listed Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies. Many resource investors know the Vancouver based financier Frank Giustra. Endeavour is Giustra’s most public investment vehicle and together they have been behind some of the biggest wins in the resource market this decade, including Wheaton River Gold, Northern Orion Resources and Urasia Energy. Endeavour’s track record has been impeccable, and we think they will continue to produce significant returns for their shareholders for years to come. We also feel that the continued weakness in the dollar will add to Endeavour’s success.
Environmental Infrastructure Holdings Corp. (OTC BB: EIHC) $0.26 Environmental Infrastructure Holdings (EIHC) is the parent company of various environmental manufacturing, engineering, and services companies. Currently, EIHC has two subsidiaries Equisol, LLC and Xiom Corp. as well as investments into various joint ventures and partnerships. Recognized in 2008 by INC Magazine as the 7th fastest growing private Environmental Services Company in America, Equisol, LLC, is a unique equipment solutions provider specializing in the water and wastewater industry. Their team of top rated engineers specializes in automation equipment and services across multiple industries where water use and automation are important. From consulting and design of equipment systems, to sales, installation and maintenance services, Equisol can address their customer's needs in many diverse applications. Equisol provides cost effective equipment strategies to allow users of water and producers of wastewater to achieve profitability while focusing on their core business activities. Through Equisol's association with world technology leaders, they are able to supply a broad spectrum of high quality products. Their staff, with over 300 years of engineering experience in equipment automation, uses these technologies to select the most effective solution for their customer's applications. Other recognition that Equisol has achieved include the Entrepreneur Hot 100 Fastest New Companies in 2004, INC5000 ranking of #621 for 2007, and 2009 Philadelphia 100 recognizing the fastest growing private companies in the region. Xiom Corp. is a technology business offering delivery of plastic powder coatings at on-site locations utilizing the XIOM 1000 System. Powder coating currently is a process in which metal parts are brought into a factory environment where they are cleaned and prepared to receive a powder coating. Plastic in powder form is then applied to the various metal parts by means of an electrostatic charge that causes the powder to adhere to the surface. The coated part is then heated in an oven for a period of time to cause the plastic to melt and adhere to the substrate. Although they use plastic powder, they do not electro-statically charge that powder in order for it to adhere to a substrate. Xiom uses a different mechanism which simultaneously applies and fuses the powder to a substrate. The advantage of this process is that the coating process is totally portable and can be applied anywhere, not necessarily in a factory setting, and can be applied without use of an oven to cure the coating, and can be applied to most substrates in addition to the metal substrate to which powder coatings are traditionally applied in a factory, using an oven. The CEO of the combined entities, Mr. Michael Parrish has extensive operational and general management experience; his focus is on financial performance and strategic alliances. Prior to running Equisol, Mr. Parrish held various executive positions in several General Electric Companies where he served in positions such as General Manager for global logistics and services for GE’s Water business, and, earlier, as Managing Director for GE Capital specializing in ecommerce, six sigma, and productivity of several of GE’s equipment management groups. Prior to GE, Mr. Parrish served for 14 years active duty in the U.S. Army where he held various leadership positions of increasing responsibility as an Army Aviator culminating as a member of the Army Acquisition Corps. Mr. Parrish has a Bachelor’s degree in Engineering from the U.S. Military Academy at West Point as well as a Masters degree in Astronautically Engineering from Stanford University and an MBA with honors from the Wharton School at the University of Pennsylvania. He is the current President of the West Point Society of Philadelphia and serves on the boards of the USO of SE PA/NJ and the Delaware Valley Industrial Resources Council. We think this company is extremely undervalued given the fact that the applications for Xiom's products are virtually endless. With the addition of Mike Parish and the Equisol team we believe revenues will grow dramatically in 2010.
Far East Energy Corporation (OTC BB: FEEC) $0.46 Houston, Texas based Far East Energy Corporation together with its subsidiaries, focuses on the exploration, development, production, and sale of coalbed methane gas (CBM) in the People's Republic of China. The company owns interests in three production sharing contracts, which cover the 485,000-acre Shouyang Block in Shanxi Province; the 573,000-acre Qinnan Block in Shanxi Province; and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province. Far East Energy has formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer. In addition Far East recently announced that gas production from the Shouyang Block in the Shouyang Block of Shanxi Province, China, has begun and is accelerating rapidly. The Shanxi project in full development has the potential to become one of the largest CBM projects in the world. In a country that desperately needs clean energy sources, Far East Energy has the potential to produce between 10 and 20 TFC of natural gas. It is also important to note that the price of natural gas in China has gone up over the last 3 years as opposed to the US where prices have plummeted. We have been following Far East for quite some time and now more than ever we are aggressive buyers.
Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE) $5.74 Gran Tierra Energy, Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. Current production from operations exceeds 13,000 BOPD net after royalty. The Company recently announced a capital spending program of $195 million in 2010 for exploration and production that includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Gran Tierra Energy had $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand. This is a very strong well run company and we feel they will continue to drill economic wells as they enter next year with the largest exploration drilling program in the company's history.
Houston American Energy Corp. (Nasdaq: HUSA) $6.13 Houston American Energy Corp. is an oil and gas exploration and production company whose activities are focused on several concessions in the South American country of Colombia. Houston American continues to generate strong operating cash flow from their production base in Colombia with their interest in the Hupecol project which is currently producing over 850 net barrels of oil per day and growing. In 2009, Houston American recently added 2 extremely valuable assets to their portfolio of properties. The Company partnered up with SK Energy Co. LTD to develop the highly prolific CPO 4 Block covering 345,452 acres which is situated along the productive western margin of the Llanos Basin in Colombia. Houston American now controls 25% of the CPO 4 Block which encompasses the same structure as the Corcel block where well rates of between 2,000 and 10,000 barrels of oil per day have recently been announced. SK Energy believes the CPO 4 Block has over 100 viable drilling locations with estimated recoverable reserves of 1-4 billion barrels. A 3-D seismic program is ongoing. In 2009 Houston American also inked a substantial farmout agreement with Shona Energy (Colombia) LTD. to earn a 12.5% interest in the Serrania Block, which is adjacent to the recent Ombu discovery which contains an estimated 1 billion barrels of oil in place. With the largest exploration budget in its history approved and funded Houston American enters 2010 with considerable momentum and we feel the stock will break out to new levels.
Hyperdynamics Corporation (NYSE Amex: HDY) $0.88 Sugar Land, Texas based Hyperdynamics Corporation engages in the exploration and production of oil and gas in West Africa. It holds certain contract rights for the exploration and exploitation of oil and gas in an approximately 80,000 square kilometer concession off the coast of the Republic of Guinea. The last several months have been very exciting for Hyperdynamics as they have partnered up with 2 very strong and capable companies. First Hyperdynamics signed a binding sale and purchase agreement (S&PA) with Aberdeen, Scotland, based Dana Petroleum PLC under which Dana has agreed to acquire a 23 percent participating interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $19.6 million. In addition Hyperdynamics has signed an agreement for exclusive dealing and letter of intent (the "LOI") with Spain's largest oil company Repsol YPF, S.A. (BMAD: REP and NYSE: REP) under which the two companies will negotiate the assignment to Repsol a 37 percent interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $31.5 million. Repsol also would be the operator of the Guinea project. Ray Leonard, Hyperdynamics President and Chief Executive Officer, said, "Dana Petroleum and Repsol bring significant experience to jointly explore our concession in Northwest Africa, as Repsol and Dana have successfully partnered in the past on exploration projects in Northwest Africa. "Assuming we reach definitive agreements with Repsol, Hyperdynamics will retain a 40 percent working interest in the Guinea concession and will be in a stronger financial position, with more than $51 million upon the entry into full legal effect of the production sharing contract clarification to fund our share of 3D seismic and drilling required during the exploratory period. We look forward to working with both companies to explore and develop this large, highly prospective offshore tract." If successful, we feel this company has potential to grow into a multibillion dollar company.
ICOP Digital, Inc. (Nasdaq: ICOP) $0.44 ICOP Digital, Inc. is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors improve security, reduce losses, and mitigate risks through the capture, live streaming and secure management of high quality video and audio. ICOP has already penetrated law enforcement markets in 49 states, as well as key international markets, including Mexico and Saudi Arabia. ICOP Digital is currently the only approved vendor of in-car video equipment for the Kingdom of Saudi Arabia, contracted through their Ministry of Interior. We estimate the market in Saudi Arabia to be over 100,000 security vehicles and feel ICOP has great potential to capture this and other key markets in the Middle East. A few domestic clients include Alaska State Troopers, Wyoming State Troopers, Mobile Police Department in Alabama, and Hartford Police Department in Connecticut. ICOP's products have proven to be of the utmost caliber of quality in the industry, as Raytheon recently signed a 5 year agreement to sell ICOP products worldwide. We believe this to be a game changing event for the company and partnering up with Raytheon will open up significant markets to ICOP's array of products. Globally, security continues to be a major concern, and video is proving to be a key component in the growth of the security industry. We believe significant monies will be spent to modernize current systems, worldwide. Therefore, we believe 2010 will be a breakout year for ICOP.
InterOil Corporation (NYSE: IOC) $77.07 InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. Congratulations to all longs as 2009 has been a truly spectacular year for the company. With 2 world record breaking wells in Antelope we wonder what Phil will do for an encore in 2010. Although the stock price has moved significantly higher we still feel there are many short and long term catalysts that will propel InterOil to new levels. Some near term examples of the upside here are possible deals announced per China, India, Japan, etc., a possible oil find announcement, further news on the proposed condensate plant, and additional analyst coverage.
Manas Petroleum (OTC BB: MNAP) $0.55 Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America. Since inception, Manas has acquired a spectacular portfolio of high impact exploration properties. In keeping with their philosophy of building a strong and enduring resource base, earlier in 2009 Manas added blocks 2 and 3 in Albania, blocks 13 and 14 in Mongolia and the Western blocks in Tajikistan, expanding their portfolio from 11 to 16 blocks in 5 countries; we now believe that Manas controls in excess of 4 Billion Barrels of Recoverable Oil. Every one of the Company’s giant projects are moving forward and maturing toward production. In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra. We believe this is an excellent transaction for Manas as it will create significant shareholder value moving forward. The closing is expected to be completed during the first several weeks of the New Year. In Kyrgyzstan, Manas has signed a $54 million USD farm-out agreement with Santos LTD ADR, covering 1.2 billion barrels in place (Scott Pickford, 2005). Santos will continue to drill with Manas on their 6 shallow and deep well program in 2010. Manas' Development of its license in Tajikistan is now covered by an option farm-in agreement with Santos, where a seismic program is moving forward. In Mongolia Manas will expand their exploration with a seismic campaign to encompass approximately 20, 000 square kilometers. Additionally, to expose Manas to a much larger and more sophisticated audience, the Company is continuing to take the necessary steps to become listed on the TSX Venture stock exchange. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities and surely this company has the greatest upside potential on our list.
Nutra Pharma Corporation (OTC BB: NPHC) $0.35 Nutra Pharma Corporation was founded in 2000 and is based in Plantation, Florida. The company, through its subsidiaries, operates as a biotechnology company specializing in the acquisition, licensing, and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, pain, autoimmune, and infectious diseases. Nutra Pharma's wholly-owned drug discovery subsidiary, ReceptoPharm, is developing proprietary therapeutic protein products primarily for the prevention and treatment of viral and neurological diseases, including Multiple Sclerosis (MS), Adrenomyeloneuropathy (AMN), and Human Immunodeficiency Virus (HIV), and pain in humans. Additionally, ReceptoPharm provides contract research services through its ISO class 5 and GMP certified facilities. The Company recently launched an Over-The-Counter (OTC) Treatment for Stage 2 (Moderate to Severe) Chronic Pain called Cobroxin. Cobroxin is the first OTC pain reliever clinically proven to treat Stage 2 (moderate to severe) chronic pain and is available as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps and neuralgia and as a topical gel for treating repetitive stress, arthritis, and joint pain. Nutra Pharma also has formulated a higher dose pharmaceutical grade treatment for stage 3 (severe) pain called Nyloxin. Nyloxin Oral Spray is an oral formulation of diluted cobra venom prepared according to the requirements of the Homeopathic Pharmacopoeia of the United States (HPUS) and its supporting texts. What really drew us to this company is the exceptional management team lead by CEO Rik J Deitsch. With sales of Cobroxin ramping up, Nutra Pharma appears to be well on the way to becoming a major success. Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to http://www.undiscoveredequities.com/ and join our email list on our home page.
Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212 Boca Raton, FL 33432
http://www.undiscoveredequities.com/
101 Plaza Real South, Suite 212
Boca Raton, FL 33432
1-800-404-8982
http://www.undiscoveredequities.com/
As promised, we at Undiscovered Equities would like to take this opportunity to showcase our top 10 investment opportunities for 2010. Last year we urged our subscribers to ignore the nervousness of the times and take advantage of the opportunity that the period of forced liquidation created. As our results show, it proved to be, as Warren Buffett said, “one of the greatest buying opportunities of our lifetime.” Our advice to our subscribers this year is to remain patient, have a long term outlook and continue to invest in great businesses: ones that can make huge profits and grow dramatically even in today’s economic environment. Looking ahead we expect that the market for crude oil will continue to grow, especially as certain areas of the world such as India and China continue to modernize. We feel that oil prices will trade in a range between $66 and $90 per barrel. This year however we are avoiding domestic natural gas exploration plays as we believe gas prices will remain under pressure due to the recent robust shale finds and the challenging US economic environment. In the past we have focused primarily on the energy sector, but this year we have chosen to diversify as several extraordinary opportunities have captured our attention. We expect these 10 stocks to outperform in the New Year and as always it is important to keep some cash in reserves for extraordinary opportunities.
All of us at Undiscovered Equities hope you had a great holiday season and we wish you success and prosperity in the New Year!
Endeavour Financial (TSX: EDV) $1.77 Ironically, we were introduced to Endeavour through their interest in Manas Petroleum’s giant concessions in Albania. TSX Listed Endeavour Financial is an independent merchant banking company focused on the global natural resources sector. Endeavour offers advisory services in project, corporate and debt capital markets; equity financings; mergers and acquisitions; and strategic business development. Endeavour also has a gold-focused investment strategy and seeks maximum returns by identifying, investing in and consolidating junior gold mining companies as well as some oil and gas companies. Many resource investors know the Vancouver based financier Frank Giustra. Endeavour is Giustra’s most public investment vehicle and together they have been behind some of the biggest wins in the resource market this decade, including Wheaton River Gold, Northern Orion Resources and Urasia Energy. Endeavour’s track record has been impeccable, and we think they will continue to produce significant returns for their shareholders for years to come. We also feel that the continued weakness in the dollar will add to Endeavour’s success.
Environmental Infrastructure Holdings Corp. (OTC BB: EIHC) $0.26 Environmental Infrastructure Holdings (EIHC) is the parent company of various environmental manufacturing, engineering, and services companies. Currently, EIHC has two subsidiaries Equisol, LLC and Xiom Corp. as well as investments into various joint ventures and partnerships. Recognized in 2008 by INC Magazine as the 7th fastest growing private Environmental Services Company in America, Equisol, LLC, is a unique equipment solutions provider specializing in the water and wastewater industry. Their team of top rated engineers specializes in automation equipment and services across multiple industries where water use and automation are important. From consulting and design of equipment systems, to sales, installation and maintenance services, Equisol can address their customer's needs in many diverse applications. Equisol provides cost effective equipment strategies to allow users of water and producers of wastewater to achieve profitability while focusing on their core business activities. Through Equisol's association with world technology leaders, they are able to supply a broad spectrum of high quality products. Their staff, with over 300 years of engineering experience in equipment automation, uses these technologies to select the most effective solution for their customer's applications. Other recognition that Equisol has achieved include the Entrepreneur Hot 100 Fastest New Companies in 2004, INC5000 ranking of #621 for 2007, and 2009 Philadelphia 100 recognizing the fastest growing private companies in the region. Xiom Corp. is a technology business offering delivery of plastic powder coatings at on-site locations utilizing the XIOM 1000 System. Powder coating currently is a process in which metal parts are brought into a factory environment where they are cleaned and prepared to receive a powder coating. Plastic in powder form is then applied to the various metal parts by means of an electrostatic charge that causes the powder to adhere to the surface. The coated part is then heated in an oven for a period of time to cause the plastic to melt and adhere to the substrate. Although they use plastic powder, they do not electro-statically charge that powder in order for it to adhere to a substrate. Xiom uses a different mechanism which simultaneously applies and fuses the powder to a substrate. The advantage of this process is that the coating process is totally portable and can be applied anywhere, not necessarily in a factory setting, and can be applied without use of an oven to cure the coating, and can be applied to most substrates in addition to the metal substrate to which powder coatings are traditionally applied in a factory, using an oven. The CEO of the combined entities, Mr. Michael Parrish has extensive operational and general management experience; his focus is on financial performance and strategic alliances. Prior to running Equisol, Mr. Parrish held various executive positions in several General Electric Companies where he served in positions such as General Manager for global logistics and services for GE’s Water business, and, earlier, as Managing Director for GE Capital specializing in ecommerce, six sigma, and productivity of several of GE’s equipment management groups. Prior to GE, Mr. Parrish served for 14 years active duty in the U.S. Army where he held various leadership positions of increasing responsibility as an Army Aviator culminating as a member of the Army Acquisition Corps. Mr. Parrish has a Bachelor’s degree in Engineering from the U.S. Military Academy at West Point as well as a Masters degree in Astronautically Engineering from Stanford University and an MBA with honors from the Wharton School at the University of Pennsylvania. He is the current President of the West Point Society of Philadelphia and serves on the boards of the USO of SE PA/NJ and the Delaware Valley Industrial Resources Council. We think this company is extremely undervalued given the fact that the applications for Xiom's products are virtually endless. With the addition of Mike Parish and the Equisol team we believe revenues will grow dramatically in 2010.
Far East Energy Corporation (OTC BB: FEEC) $0.46 Houston, Texas based Far East Energy Corporation together with its subsidiaries, focuses on the exploration, development, production, and sale of coalbed methane gas (CBM) in the People's Republic of China. The company owns interests in three production sharing contracts, which cover the 485,000-acre Shouyang Block in Shanxi Province; the 573,000-acre Qinnan Block in Shanxi Province; and the Enhong and Laochang areas, which total 265,000 acres, in Yunnan Province. Far East Energy has formed an alliance related to its Qinnan Block with Arrow Energy International Pte Ltd (Arrow), the Singapore-based subsidiary of Arrow Energy Limited, a large Australian CBM producer. In addition Far East recently announced that gas production from the Shouyang Block in the Shouyang Block of Shanxi Province, China, has begun and is accelerating rapidly. The Shanxi project in full development has the potential to become one of the largest CBM projects in the world. In a country that desperately needs clean energy sources, Far East Energy has the potential to produce between 10 and 20 TFC of natural gas. It is also important to note that the price of natural gas in China has gone up over the last 3 years as opposed to the US where prices have plummeted. We have been following Far East for quite some time and now more than ever we are aggressive buyers.
Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE) $5.74 Gran Tierra Energy, Inc. is an international oil and gas exploration and production company operating in South America. The Company currently holds interests in producing and prospective properties in Colombia, Argentina and Peru. The Company strategy is focused on establishing a portfolio of drilling opportunities to exploit undeveloped reserves to grow production, as well as undertaking exploration drilling to grow future reserves. Current production from operations exceeds 13,000 BOPD net after royalty. The Company recently announced a capital spending program of $195 million in 2010 for exploration and production that includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Gran Tierra Energy had $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand. This is a very strong well run company and we feel they will continue to drill economic wells as they enter next year with the largest exploration drilling program in the company's history.
Houston American Energy Corp. (Nasdaq: HUSA) $6.13 Houston American Energy Corp. is an oil and gas exploration and production company whose activities are focused on several concessions in the South American country of Colombia. Houston American continues to generate strong operating cash flow from their production base in Colombia with their interest in the Hupecol project which is currently producing over 850 net barrels of oil per day and growing. In 2009, Houston American recently added 2 extremely valuable assets to their portfolio of properties. The Company partnered up with SK Energy Co. LTD to develop the highly prolific CPO 4 Block covering 345,452 acres which is situated along the productive western margin of the Llanos Basin in Colombia. Houston American now controls 25% of the CPO 4 Block which encompasses the same structure as the Corcel block where well rates of between 2,000 and 10,000 barrels of oil per day have recently been announced. SK Energy believes the CPO 4 Block has over 100 viable drilling locations with estimated recoverable reserves of 1-4 billion barrels. A 3-D seismic program is ongoing. In 2009 Houston American also inked a substantial farmout agreement with Shona Energy (Colombia) LTD. to earn a 12.5% interest in the Serrania Block, which is adjacent to the recent Ombu discovery which contains an estimated 1 billion barrels of oil in place. With the largest exploration budget in its history approved and funded Houston American enters 2010 with considerable momentum and we feel the stock will break out to new levels.
Hyperdynamics Corporation (NYSE Amex: HDY) $0.88 Sugar Land, Texas based Hyperdynamics Corporation engages in the exploration and production of oil and gas in West Africa. It holds certain contract rights for the exploration and exploitation of oil and gas in an approximately 80,000 square kilometer concession off the coast of the Republic of Guinea. The last several months have been very exciting for Hyperdynamics as they have partnered up with 2 very strong and capable companies. First Hyperdynamics signed a binding sale and purchase agreement (S&PA) with Aberdeen, Scotland, based Dana Petroleum PLC under which Dana has agreed to acquire a 23 percent participating interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $19.6 million. In addition Hyperdynamics has signed an agreement for exclusive dealing and letter of intent (the "LOI") with Spain's largest oil company Repsol YPF, S.A. (BMAD: REP and NYSE: REP) under which the two companies will negotiate the assignment to Repsol a 37 percent interest in Hyperdynamics' oil and gas concession offshore the Republic of Guinea for $31.5 million. Repsol also would be the operator of the Guinea project. Ray Leonard, Hyperdynamics President and Chief Executive Officer, said, "Dana Petroleum and Repsol bring significant experience to jointly explore our concession in Northwest Africa, as Repsol and Dana have successfully partnered in the past on exploration projects in Northwest Africa. "Assuming we reach definitive agreements with Repsol, Hyperdynamics will retain a 40 percent working interest in the Guinea concession and will be in a stronger financial position, with more than $51 million upon the entry into full legal effect of the production sharing contract clarification to fund our share of 3D seismic and drilling required during the exploratory period. We look forward to working with both companies to explore and develop this large, highly prospective offshore tract." If successful, we feel this company has potential to grow into a multibillion dollar company.
ICOP Digital, Inc. (Nasdaq: ICOP) $0.44 ICOP Digital, Inc. is a leading provider of mobile video solutions for Law Enforcement, Fire, EMS, Military, and Transportation markets, worldwide. ICOP solutions help the public and private sectors improve security, reduce losses, and mitigate risks through the capture, live streaming and secure management of high quality video and audio. ICOP has already penetrated law enforcement markets in 49 states, as well as key international markets, including Mexico and Saudi Arabia. ICOP Digital is currently the only approved vendor of in-car video equipment for the Kingdom of Saudi Arabia, contracted through their Ministry of Interior. We estimate the market in Saudi Arabia to be over 100,000 security vehicles and feel ICOP has great potential to capture this and other key markets in the Middle East. A few domestic clients include Alaska State Troopers, Wyoming State Troopers, Mobile Police Department in Alabama, and Hartford Police Department in Connecticut. ICOP's products have proven to be of the utmost caliber of quality in the industry, as Raytheon recently signed a 5 year agreement to sell ICOP products worldwide. We believe this to be a game changing event for the company and partnering up with Raytheon will open up significant markets to ICOP's array of products. Globally, security continues to be a major concern, and video is proving to be a key component in the growth of the security industry. We believe significant monies will be spent to modernize current systems, worldwide. Therefore, we believe 2010 will be a breakout year for ICOP.
InterOil Corporation (NYSE: IOC) $77.07 InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby. Congratulations to all longs as 2009 has been a truly spectacular year for the company. With 2 world record breaking wells in Antelope we wonder what Phil will do for an encore in 2010. Although the stock price has moved significantly higher we still feel there are many short and long term catalysts that will propel InterOil to new levels. Some near term examples of the upside here are possible deals announced per China, India, Japan, etc., a possible oil find announcement, further news on the proposed condensate plant, and additional analyst coverage.
Manas Petroleum (OTC BB: MNAP) $0.55 Manas Petroleum is an international oil and gas company with primary focus on exploration and development in south-eastern Europe, Central Asia and South America. Since inception, Manas has acquired a spectacular portfolio of high impact exploration properties. In keeping with their philosophy of building a strong and enduring resource base, earlier in 2009 Manas added blocks 2 and 3 in Albania, blocks 13 and 14 in Mongolia and the Western blocks in Tajikistan, expanding their portfolio from 11 to 16 blocks in 5 countries; we now believe that Manas controls in excess of 4 Billion Barrels of Recoverable Oil. Every one of the Company’s giant projects are moving forward and maturing toward production. In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra. We believe this is an excellent transaction for Manas as it will create significant shareholder value moving forward. The closing is expected to be completed during the first several weeks of the New Year. In Kyrgyzstan, Manas has signed a $54 million USD farm-out agreement with Santos LTD ADR, covering 1.2 billion barrels in place (Scott Pickford, 2005). Santos will continue to drill with Manas on their 6 shallow and deep well program in 2010. Manas' Development of its license in Tajikistan is now covered by an option farm-in agreement with Santos, where a seismic program is moving forward. In Mongolia Manas will expand their exploration with a seismic campaign to encompass approximately 20, 000 square kilometers. Additionally, to expose Manas to a much larger and more sophisticated audience, the Company is continuing to take the necessary steps to become listed on the TSX Venture stock exchange. Importantly, next year looks set to see a very significant acceleration of Manas Petroleum’s activities and surely this company has the greatest upside potential on our list.
Nutra Pharma Corporation (OTC BB: NPHC) $0.35 Nutra Pharma Corporation was founded in 2000 and is based in Plantation, Florida. The company, through its subsidiaries, operates as a biotechnology company specializing in the acquisition, licensing, and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, pain, autoimmune, and infectious diseases. Nutra Pharma's wholly-owned drug discovery subsidiary, ReceptoPharm, is developing proprietary therapeutic protein products primarily for the prevention and treatment of viral and neurological diseases, including Multiple Sclerosis (MS), Adrenomyeloneuropathy (AMN), and Human Immunodeficiency Virus (HIV), and pain in humans. Additionally, ReceptoPharm provides contract research services through its ISO class 5 and GMP certified facilities. The Company recently launched an Over-The-Counter (OTC) Treatment for Stage 2 (Moderate to Severe) Chronic Pain called Cobroxin. Cobroxin is the first OTC pain reliever clinically proven to treat Stage 2 (moderate to severe) chronic pain and is available as an oral spray for treating lower back pain, migraines, neck aches, shoulder pain, cramps and neuralgia and as a topical gel for treating repetitive stress, arthritis, and joint pain. Nutra Pharma also has formulated a higher dose pharmaceutical grade treatment for stage 3 (severe) pain called Nyloxin. Nyloxin Oral Spray is an oral formulation of diluted cobra venom prepared according to the requirements of the Homeopathic Pharmacopoeia of the United States (HPUS) and its supporting texts. What really drew us to this company is the exceptional management team lead by CEO Rik J Deitsch. With sales of Cobroxin ramping up, Nutra Pharma appears to be well on the way to becoming a major success. Undiscovered Equities is currently offering a complimentary trial subscription.
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Kevin McKnight 1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212 Boca Raton, FL 33432
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