Sun Cal Moves Toward Development Greater Green River Basin Project, Maintains ‘Speculative Buy/4′ Rating and $3.75 Target Valuation, According To SISM Research
(Investrend Research Syndicate) In a research update dated March 10, 2008, Ernest C. Schlotter, a senior analyst with SISM Research and a StarMine four-star analyst, has reiterated his “Speculative Buy/4″ rating and 12-18 month price target of $3.75 for Sun Cal Energy Inc. (OTCBB: SCEY), citing movement toward development of the low-risk Greater Green River Basin Project in Wyoming. Long URLs in this release may need to be copied/pasted into your Internet browser’s address field. Remove the extra space if one exists.
The full SISM report on SCEY, including important disclosures, disclaimers, and analyst qualifications is available at http://www.sism.com and http://www.investrendresearch.com , or may be directly accessed via this link: http://www.investrend.com/Admin/Topics/ Articles/Resources/60_1205324510.pdf . Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
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Sun Cal Energy focuses on the acquisition and development of oil and gas properties in North America’s most productive hydrocarbon producing areas. This energy exploration company is focused in the Southern San Joaquin Valley of California, Oklahoma’s Anadarko Basin, Louisiana’s Breton Sound, and Wyoming’s Green River Basin.
According to SISM analyst Schlotter: “Sun Cal Energy, an E&P company, is in the early stage of its business development and has acquired, in less than one year of operation, world-class leaseholds and participations in the Southern San Joaquin Valley of California, Oklahoma’s Anadarko Basin, Louisiana’s Breton Sound, and Wyoming’s Green River Basin. Last month, Marathon’s Cunningham well came on production with a daily gas flow rate in excess of 12 Mmcf/d. An additional well within this property could be drilled soon depending on regulatory approval. Sun Cal receives a five percent ORRI from Centurion Property regarding 160 producing wells.”
Mr. Schlotter added: “In 2007, Sun Cal acquired 6,000 acres in the Jonah Field, a world-class low risk natural gas development area in Wyoming. During 2006, 3,243 wells were drilled in Wyoming with an astonishing success rate of 97.9% for drilling and completion. Sun Cal contracted Schlumberger to evaluate the South Jonah Prospect and the new evaluation report, which has recently been released, has increased potential gas reserves substantially. Based on available geological, petrophysical, and reservoir engineering data, Schlumberger quotes the estimated ultimate recoveries (EUR) in the low case (P10) to be 292 Bcf of natural gas and in the high case (P90) 1.28 Tcf. Schlumberger stated that the South Jonah Prospect has a good chance of encountering producible hydrocarbons.”
Analyst Schlotter concluded: “In 2008, Sun Cal will focus on the development of the low risk Jonah Prospect and will further focus on the other world-class areas of the Southern San Joaquin Valley of California, the Anadarko Basin of Oklahoma, and the Breton Sound of Louisiana. The next twelve to eighteen months are going to be very exciting for the Company as the Company now has its land position and intends to begin to unlock this value.”
SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent, fundamental research on public companies since 1995. SISM Research writes, publishes and distributes research coverage on micro- to small-cap public companies trading on the OTC, NASDAQ and AMEX. This coverage is geared toward institutional and individual investors in both North America and in Europe, a market that represents more than 100 million people. SISM Research is a content provider to Thomson Financials OneAnalytics/FirstCall and Investext, Reuters Multex, Knobias and Investrend.
Both SISM Research and Investrend Research subscribe to the exacting “Standards for Independent Research Providers” at http://www.firstresearchconsortium.com , as well as the CFA-NIRI Guidelines at http://www.cfainstitute.org . SISM’s Research platform is also executed in accordance with Guidance set forth by U.S. Securities and Exchange Commission’s Advisory Committee on Smaller Public Companies at http://www.sec.gov/info/smallbus/acspc/acspc-finalreport_d.pdf .
SISM Research is being paid $1,750 per month by the company over a two-year period solely to ensure independent coverage. SISM and Investrend Research take steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Complete information about this company is available at the company’s InvestorPower page accessible from http://www.investrend.com/company/list.asp?sPathParam=yes , and the full report is available at http://www.sism.com and http://www.investrendresearch.com . Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
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