MegaWest Energy Corp. (MGWSF.OB) Adds Common Shares after Private Placement, Draws Remarkable ResultsWednesday, July 2nd, 2008
The oil and gas markets have been a saving grace for many investors currently taking a beating across the entire big board. Smaller, more nimble oil and gas companies have been quickly and quietly ramping up smaller scale operations to hit the proverbial oil and gas cash cow. In many respects, these companies are like pharmaceutical companies. They have oil and gas properties in their portfolio, but need to get the product flowing before they can cash in. Find an oil and gas company that is farther along the property development path, and profit will be waiting at the end.
MegaWest Energy Corp, an oil and gas exploration and development company, works to develop and extract oil and gas in approximately 115,000 acres of land across Nebraska, Missouri, Kentucky, Montana and Texas. The company recently completed a private placement with such success that it added common shares to the placement totaling approximately $16 million.
With an experienced management team located in Canada and Texas, the company has been adding to its property leases. It has now reached a point where it will continue to address property acquisition but be more concerned with drilling its most potentially profitable properties. In this regard, the company will spend its new infusion of cash to further enhance and develop its Missouri properties – toward an end-goal of 500 barrels of oil per day by the fourth quarter of 2008. Overall company oil production is targeted for 1,300 barrels per day by the end of 2008. Gas testing is expected to take a bit more of the company’s time through the remainder of 2008 as the company begins to focus on its potential natural gas inventories in Kentucky and Texas.
The company appears to be positioned nicely to profit from current energy pricing moves. It might still be considered a developing company, but with a nice land portfolio and clear intentions to exploit those holdings, the company looks like it will be pumping up its profits by the end of the year.
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