Grid Petroleum Corp. (OTCBB:GRPR - News) is pleased to announce the completion of a financial report by premier research company, Cohen Independent Research Inc., which concludes with a Price Index Target of $2.26.
The report evaluates Grid Petroleum's potential by assessing the company's position in the oil and gas exploration industry, relating to a global overview of oil and gas expectations, using one of the most complex and sophisticated oil models that has been built in the financial community.
The report encompasses evaluations on the company's assets, both physical and managerial, and reviews the initial financial structuring suitable for realizing the intrinsic share value of Grid petroleum.
The report highlights some key aspects of Grid Petroleum's position, stating:-
Grid Petroleum has completed the acquisition of assets in the prolific Jonah Field region, and the Company is in the process of looking to expand its acreage in the region.
The US government is interested in increasing domestic production of natural gas to break the dependence on foreign oil and reach clean energy goals. Wyoming is second only to Texas, with regard to proven reserves of natural gas; and its reserve base has been growing significantly in recent years.
Grid Petroleum's experienced management team, prolific reserves, cutting edge technology, knowledge and capable engineers provide the Company with a significant competitive advantage.
The report continues:-
"We expect revenues of $5.4 million for FYE 2010 and more than $145.7 million by 2016. The Company is also expected to efficiently manage operations and command significantly higher operating margins and net profit margins".
In reaching the Price Index target the Cohen Research report explains:-
The Cohen Price Index Target is calculated using 2010 Price-to-Earnings ratio (P/E), Cohen Price-to-Capital Employed ratio (P/CE), Cohen Discounted Cash Flow (DCF) method and Cohen Price Performance Index. The P/E and P/CE are based on market multiples and representative of the broader industry in which the Company operates. The Cohen Price Performance Index is representative of the post coverage performance of all stocks covered by Cohen Research and Grass Roots Research. The last component in calculating the Cohen Price Index Target is the value derived using the long-term Cohen DCF valuation approach.
Based on an average of these methods, GRPR common stock is valued at $2.26 per share".
Paul Watts, CEO of Grid Petroleum, said: "We are delighted to have this report in place from Cohen Independent Research. As one of the most respected names in the area of financial research, this report solidly underpins Grid Petroleum's value establishing a Price Index Target of $2.26 providing impetus to the company as it moves forward in developing its resources and forging its reputation in the market place".
About Grid Petroleum
Grid Petroleum Corp (NASD OTCBB:GRPR) is a London, UK based Independent Oil and Gas Exploration Company, with an operational office in Denver Colorado. Grid has recently secured assets in Wyoming, neighboring the prolific Jonah Gas Field. For more information, please visit www.gridpetroleum.com.
Legal Notice Regarding Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning gold or other mineral reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present if and when a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of gold or mineral deposits, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of gold or minerals are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in filings on Edgar of other junior mineral exploration companies with the US Securities and Exchange Commission. This announcement may also contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
Contacts:
Grid Petroleum Corp.
Paul Watts, 1-888-851-6086
President
www.gridpetroleum.com
