CHAG - Chancellor Group Inc - Page 17

At first glance, that 10-Q is more than I was hoping for. They have the Pampa unit restored which is 18,900 MCF. That revenue will pay for all other well restoration from this point forward.

The well restoration is going much quicker than I anticipated, could be around 18 months for full restoration at this pace.

You gotta love that they still have not mentioned the true revenue potential with natural gas production that I discovered around 10 days ago. Here is the movie yet again for anyone that missed it.

This management is not pumping one thing about the company, I just love that.

They held up their end of the bargain by filing on time, now I have some trust and confidence in this management team.

I am convinced CHAG jumps to the BB soon.

I'll work on the second quarter earnings forecast tonight. First we'll wait to see if we receive any follow-up news by management but the second and third quarter revenues will be MUCH higher than I previously anticipated.

I'm pretty happy that they delivered the 10Q on time and it was nice to see that they've been busy restoring wells. OTCBB listing is imminent

i'm liking this more and more. sounds like they are on top of things and moving the company forward (not just on paper )

we all know the potential.

I did a similar search a while back with the BLM (bureau of land management) looking for leaseholders in the oil shale properties. Good way to find info on potential big hitters in the gas industry.

Would you like to go for a roll in the hay Frau Breucher?

OFF TOPIC

since alot of members dont see the thread on the main page im posting a quick summary here

Questsolver a super mod here on hsm lost his mom to cancer a short while ago, he is doing a fundraiser for cancer and needs HSM support.. so if everyone could donate $5 dollars, imagine how much he could raise.. so please help if you can...

ALSO Quest has stated tonight that if he raises 2500.00 dollars by tomorrow he will match this.. lets help those that need it!!!!!!!!!!!!!!!!!

Lets show them what HSMer's are all about !!!!

https://www.kintera.org/faf/donorReg...upId=160578086

cheers

Hippychix

ok just realized link isnt working right so please find the thread as a sticky at the top of the main forum.. or pm me for link.. thanks

Earnings Forecast: '07 & '08


As of April 30, 2007 we have restored approximately 40 wells to production bringing the total number of producing wells to 140, at a cost of $45,000, including allocated internal costs.
"Our plan is to operate our properties and to restore 10-20 wells per month to production. A typical well restoration we estimate will cost $2,500 to $5,000" (even though it has averaged at $1,125 as of now per well restoration they are obviously restoring the best wells that need the least amount of restoration work first).

491 wells remaining at $1,125 per restoration is $552,375. At $3,000 (which is the figure used in the forecast) per restoration it will cost $1,473,000 to restore the remaining wells.

Current Producing wells:
Pampa Unit 03061 137 0.70 18900
Short B 00684 2 0.800312 1800
00291 SAUNDERS, D 900

The often quoted unit for natural gas is an MCF (thousand cubic feet), currently trading for around $7.86, I use $4 profit per (MCF) in this forecast.


21,600 (MCF) = $86,400 natural gas profit for May.

3,000 barrels of oil per month at $35 profit per barrel is $105,000 for May.

20 restored wells each month at 3,000 per restoration is -$60,000 restoration expenditures each month.

$105,000 + $86,400 = $191,400 - $60,000 and profit for May could be $131,400

Factor a production increase of approximately 10,000 MCF and 750 barrels of oil per month and your looking at $66,250 additonal profit each month indefinetly until maximum production is achieved which could take place in Q3 2008 at the current pace CHAG management is restoring wells.

Based on that formula, second quarter earnings May, and June (April not included) could exceed $300,000.

May '07 - $131,400

June '07 - $197,650

Q2 Total $329,050


Q3
July '07 - $263,900

August '07 - $330,150

September '07 - $396,400

Q3 potential profit $990,450


Q4
October '07 - $462,650

November '07 - $528,900

December '07 - $595,150

Q4 potential profit $1,586,700

Full Year 2007 EPS Forecast: $2,906,200


2008 Earnings Forecast

Q1
January '08 - $661,400

Februrary '08 - $727,650

March '08 - $793,900

Q1 Total $2,182,950


Q2
April '08 - $860,150

May '08 - $926,400

June '08 - $992,650

Q2 Total $2,779,200


Q3
July '08 - $1,058,900

August '08 - $1,125,150

September '08 - $1,191,400

Q3 Total $3,375,450
Max Production Achieved in Q3 2008


Q4
October '08 - $1,200,000

November '08 - $1,200,000

December '08 - $1,200,000

Q4 Total $3,600,000

Full Year 2008 Forecast Earnings $11,937,600

$11,937,600 divided by the current O/S 64,502,781 = $0.185 multiplied by 4x's earnings is $0.74 intrinsic value per share.

Full Year 2009 and beyond Forecast Earnings $14,400,000 annually

-Shane Burke

Nice post and very impressive numbers!

finally in after 3 days of sitting on my order

What did you get in at if you don't mind me asking?

-Spec

got filled today

.

.11

Yup, just got in at .11, why does yahoo show a price of .19?

there's a hawkeyed painter out there somewhere Lol

spammer here but for a real good cause... so outside of liking those things that we women have, do you guys also like hsm??? if so then could you maybe show this and help quest and all women and maybe donate $1. (or more) to show your appreciation??? just go here and do it >>> http://www.hotstockmarket.com/forums...ad.php?t=51423

ps - shilo have been meaning to tell you that i really like your nic.... very first cat was named that!!

I'm in shock that we've seen a couple trades below .10 today. I guess some people just don't know how to be patient. This isn't a typical penny POS pump and dump stock. Solid company with solid management.

ps - shilo have been meaning to tell you that i really like your nic.... very first cat was named that!!

well looks everyone's patience is being put to the test at the moment. The company definitely can't be accused of trying to pump their stock LOL