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Company Profile
Industry: Energy (Oil & Gas Production)
Lux Energy Corporation (OTCBB: LUXE) is an independent natural gas and Oil Producing Company engaged in the exploration development and acquisition of viable properties. Focusing on the Western Canadian Sedimentary Basin, their primary objectives are to expand upon the portfolio of assets already accumulated, and to concentrate on several core areas that they have already acquired.
Production Exceeds Expectations
November 2009 - Lux Energy Corp. has established a firm foothold in its West Central Alberta oil and gas venture.
President and CEO, Shane Broesky advises that the West Central Alberta C well has far exceeded the initial prospects. The C well drilled and completed in July 2009, was considered a natural gas target. The well completion however, encountered a significant oil reservoir plus a further bonus when the completion encountered an abundance of petroleum liquids in the gas zone.
Mr. Broesky comments that this well has to date produced in excess of 2200 bbls of oil, 20 MMCF of natural gas and 600 bbls of NG liquids without stimulation. Production to date has averaged 60 BOE/day. The operator has advised that pumping equipment was recently installed to enhance production recovery. The operator advises that the reservoirs in the C location have excellent porosity and a secondary flood program should substantially increase the capacity for reservoir recovery.
The success of the C lease location has provided Lux Energy Corp with the incentive to embark on an acquisition program to secure additional locations in this area of West Central Alberta.
The Company’s current portfolio of producing oil and gas wells is just the start of a much larger more profitable Lux Energy. The Corporate team has proven track records in technical, operations, business and the ability to raise money, which we all know are critical components for company and shareholder success.
Aggressive growth investors will also like the fact that Lux Energy has the proven ability to increase shareholder value by increasing production. Lux Energy’s production will be increased by re-working existing producing or previously producing wells and by developing proven undeveloped zones in existing wells.
If you believe that current or future oil prices are destined to rise, then the potential returns for this oil and gas producing company may offer new investors a very timely investment opportunity.
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Many leading industry analysts worldwide and Lux Energy management strongly believe that energy prices will continue to be strong for years to come (and continue to rise for perhaps, the remainder of every living generations’ lifetime).
Production and the ability to grow profits are crucial to any company’s success, especially during current economic conditions.
Lux Energy provides investors with the safety and stability of a producing company, coupled with the upside exploration potential and future production growth from acquisitions.
We strongly believe oil and gas prices are set to rise in the short and long term and that we are in a commodities bull market, which will last for many years to come.
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West Central Alberta A & B
These two wells are capped re-completion wells in an area with proven production. The wells were projected to produce approximately 570,000 cubic feet of natural gas per day or approximately 100 barrels of oil equivalent per day. Because these wells are already drilled, they are supported by well logs, seismic, and subsurface mapping. There are multiple producing formations under this area including Viking, Glauconite, Detrital, and Pekisko. Well A was hooked up and tied into the pipeline this March and exceeded expectations. Well B was uncapped and swabbed in July, the tests came back two times as high as originally projected. This B well is scheduled to have a frac completed in December of 2009.
West Central Alberta C & D
This project is a 2 well program in West Central Alberta, near Edmonton. One is a capped re-completion well in an area with proven production records and the other was a new drill target in a proven development field. The new drill target was successfully drilled in July and encountered 3 gas zones and 1 oil zone in the Banff formation. This well has been classified as an oil discovery well. Well D is scheduled to be uncapped and tied into the pipeline in December of 2009.
Quinlan #2
This well is located in Pottawatomie County, Oklahoma. There is a major re-work scheduled to be done on the Quinlan #2 in December of 2009. The depth of this well is 4800 feet and we expect to produce from the Simpson Dolomite formation. The Simpson Dolomite zone is a very prolific pay zone in the State of Oklahoma. Historical records show that the Quinlan #2 well produced in excess of 100 barrels of oil per day.
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West Central Alberta
The successful spud of C well in West Central Alberta has opened up the opportunity to participate in 2 additional drill ready targets and up to 7 new targets to be defined in this area. Our strategic operator has acquired this land and we will participate in 3D seismic testing exercises.
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Shane Broesky, President
Shane Broesky has served as President, and CEO of of Choice Capital Investments Inc, located in Alberta, Canada. Mr. Broesky has raised millions of dollars for both production and exploration of oil and gas properties. His extensive access and ability to conduct thorough research on oil and gas wells will give Lux Energy many opportunities to grow going forward.
Robert Broesky, Vice President
Robert started his career in 1972 in the petroleum industry working with contractors to major oil companies in the western provinces of Canada. Mr. Broesky has supervised and managed many projects over the years, completing them on time and on budget. He has also been involved with several business ventures which involved sales, marketing and management. Robert is also operating his own consulting and management company.
Daniel Davis, Consultant
Mr. Daniel Davis has over 30 years of resource development experience both in oil and gas as well as mining. Daniel has raised over $50 million for resource companies over the years. He brings to the company a portfolio of producing and highly prospective oil and gas land packages. In addition Mr. Davis has a support staff of seasoned professionals that include geologists, engineers, land personal and field operators that will enhance Lux’s position in the Alberta oil industry.
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| DISCLAIMER |
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Heritage First Capital & Equity Research Group (HFC), based upon information supplied by sources believed to be reliable, herein prepared all material. The information contained herein is not guaranteed by HFC to be accurate, and should not be considered to be all-inclusive. The company that is discussed in this opinion may not have approved some or any of the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. A company's actual results could differ materially from those described in any forward-looking statements or announcements discussed herein. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. HFC is not a licensed broker, broker dealer, market marker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on www.microcapmoney.com. HFC has been paid a fee of thirty six thousand dollars for thirty days of coverage on Lux Energy Corp by a non-controlling third party, which includes exposure on MicrocapMoney.com, TripleCrownStocks.com and consulting/placement services and/or recommendations to other financial marketing groups or investor relations firms. HFC's affiliates, managers, directors and employees may have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value. HFC will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on their own judgment of the market. |
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