Recent Price $1
Intermediate Target Price $2.25
ENERBRITE TECHNOLOGIES GROUP, INC.
EnerBrite Technologies Group, Inc. through its wholly owned subsidiary Rebel Energy Company, is currently operating a profitable oil and gas field in Johnson County, Kentucky. The Company is principally engaged in two business segments---the first, oil and gas exploration, development and production, and the second, implementing a drilling program for natural gas to recover maximum potential from the properties reserves. At present, the operating wells currently produce approximately 350 barrels of oil per month and the Company intends to further develop the property over the next three years. EnerBrite targets orphaned oil and gas properties in Kentucky, Texas, Louisiana, Oklahoma and other areas to re-open the wells and/or stimulate production using enhanced recovery technologies. Their goal over the last few years has been to maintain a modest level of growth to position it to capitalize on even moderate improvement in the oil and gas industry.
NEWS FLASH: The Company recently announced the details of its estimated reserves from the Rebel Martha Field properties as follows: Oil Reserves – Proven Reserves – 684,000 barrels (Weir Formation) Developed Proven Producing Reserves – 40,000 barrels – Developed Proven Non-Producing Reserves – 110,000 Barrels – Undeveloped Proven Reserves – 290,000 barrels – Natural Gas Reserves: Developed Proven Non-Producing Reserves – .5 billion cubic feet – Undeveloped Proven Reserves -- 1.2 billion cubic feet – Probable Reserves – 7 billion cubic feet - Possible Reserves – 14 billion cubic feet
ENERBRITE TECHNOLOGIES GROUP (ETGG.PK)
KEYS TO SUCCESS
ETGG’s keys to success and critical factors to assure the desired growth in revenue and profitability of the operation are:
Capitalize on new technologies that can materially accelerate growth, particularly if accompanied by higher oil prices.
“Maximize the production potential of the properties, as recovery of in-place reserves is simply a matter of economics, which are becoming more favorable at this time,” according to Jack L. Stapleton, President of EnerBrite.
Continue to strategically evaluate possible future purchases of additional producing oil and gas properties and the further development of currently owned properties.
Placing firm controls on the company’s long-term cash requirements for investing activities and the repayment of long-term debt being be met with ongoing cash flows from operations, and, if necessary, possible forward sales of oil reserves or additional debt or equity financing.
Achieve production of 2,280 BPOM by 09/09.
FUTURE PLANS
Headquartered in Fort Lauderdale, FL, EnerBrite Technologies Group, Inc. is a developing conglomerate dedicated to being part of the solution of U.S. energy dependence in the coming years. Through the acquisition and development of a portfolio of resource properties, pipelines, and real estate, the company has positioned itself for growth. EnerBrite Technologies is a growing independent energy company with an experienced operating company with technological expertise to exploit existing oil reserves and exploratory natural gas resources on its properties in eastern Kentucky. Plans are underway for EnerBrite to implement an infill drilling and gas flood program. With an infill drilling and gas flood of the Weir sand, the Company should double existing production on their property. After the deep exploration wells are drilled and assuming one successful well, an additional unrisked present value is estimated to be 24 million per well at an 8% discount factor. This coincides with the pursuit of further acquisitions in Kentucky to expand on its current interest 76 oil wells in Johnson County. The oil and gas sector has entered into a prolonged cycle of higher energy prices that will likely last for years to come. After the weak oil prices of the nineties, major oil companies allowed their exploration pipelines to dwindle, meaning virtually no deposits of magnitude were being identified.
Experts agree that 85% of the world’s known oil reserves were discovered more than 30 years ago. Just recently, in the early 2000’s, there were roughly 16 large discoveries, but as we have progressed into this decade, that has subsided noticeably. World oil consumption is currently outstripping new discoveries by a factor of 5-to-1, meaning that five barrels of oil are disappearing for every one that is found, suggesting higher oil prices. Places like China and India are hungry for oil, desperately trying to lock-up as much as they can in a frenzied attempt to secure their economic futures. No matter how you look at it, demand is going up and that bodes well for ETGG investors.
INVESTMENT CONSIDERATIONS
With the price of oil around $60 a barrel it is prudent to have some exposure to the energy sector for the longer-term. When the price of oil surges, most companies suffer from higher input costs and slackening demand. An investor’s best defense lies in owning stock in the oil companies that stand to benefit. Smart money initially picked up on the scent of the start of a prolonged bull market last year when the price of oil per barrel pushed to $150. Buying into some oil companies and acquiring others, grabbing title to the proven reserves around the world, and moving into any number of related investments. The overall longer-term risk-reward profile for this sector is quite attractive at this time. Many of these type of companies are much more financially disciplined, more business-like, and more shareholder friendly.
If the company can achieve its business plan, we feel the best is yet to come for this company.
Analyst:
Officers of Market Advisors,Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investors Business Daily, Barron's, Forbes Magazine and the Dick Davis Digest to name a few.
The information and opinions in this analyst report were prepared by Market Advisors, Inc. (located in Nebraska) who does receive fees for services including preparation of this report. For this research report, officers of Market Advisors, Inc. received $3,000 independent third party.. This is not an offer to buy or sell securities nor should this report be construed as investment advice. Information or statements are subject to numerous risks and uncertainties that cause such statements not to prove accurate. Market Advisors, Inc. does not disseminate, nor is it liable for the dissemination by any third party of this analyst report.
