tcptrace-bugs Sector Watch: (MXES) Higher Gas Prices.

From: Savvy Investor (
Date: 12/17/03

Message-ID: <00001c0c63a6$00007c94$>
From: "Savvy Investor" <>
Subject: tcptrace-bugs Sector Watch: (MXES) Higher Gas Prices.
Date: Wed, 17 Dec 2003 04:00:17 -0600

December Edition of The Savvy Investor
Each month The Savvy Investor analysts study, research, and examine hundreds of stocks, in an effort to pinpoint the one with the most promise. 

This month's pick: Matrix Energy Services Corp

Symbol: MXES

Recent Trading Range: $.07

Opinion: Strong Buy

In Related News:

  Americans will pay higher prices than previously expected for heating oil and natural gas to warm their homes this winter, the U.S. government said on Monday. More...

 Forecasts for a colder-than-normal December in the Northeast helped send natural gas futures sharply higher above the key $7 level. More...

  Natural Gas prices experienced a sharp rally during the week, driven by the large storage withdrawal and cold weather conditions.  More...

  For producers, it's a grand time because robust gas prices fatten their bottom line. More...

Financial Analysis

7500+ acres of core holdings with an additional 10,000 acres planned for acquisition.

$310+ Million in projected cash flow at current commodity prices from existing holdings.

Capacity to drill 75+ wells in the next 36 months.

Negotiations planned with a major energy capital lender to provide up to $30 million in financing.

An attractive return on investment with natural gas prices of $2.00, and an outstanding return at $3.00  Current prices are now $7.00+ Chart

Corporate Snapshot
Matrix Energy Services Corporation is a North America energy resource company engaged in oil and gas development drilling and production using advanced exploration and recovery technologies on proven reserve fields.

Matrix Energy focuses its exploration efforts on its significant holdings in Texas. It is redeveloping existing fields in and around Corsicana, Texas and other areas of the region where fields have been partially depleted by conventional production methods; but where significant, proven reserves of oil and gas still remain. These fields can become commercially viable and provide long-term revenue streams utilizing the latest technology

The Company currently leases 4,500 acres in Barnett Shale Play in Wise and Denton Counties in northeast central Texas. The leased acreage is located in the Texas Railroad Commission District 9, considered one of the largest gas reserves in North America, with an estimated 40 rigs currently deployed, and over 700 wells drilled the past twenty years without a dry hole.

Analyst Conclusion

   The recent snowfall in the Northeast has been drawing on supplies at a rate faster than in  years past. OPEC is expected to continue its support of high energy prices at its next meeting in February by keeping supply flat. Throw in a colder than normal winter across North America and Europe, along with more signs of a global economic recovery, and natural gas prices could easily surpass $10.  The average consumer will suffer higher heating costs this winter; but the natural gas producers are poised to reap windfall profits should prices retain their strength.  Industry leaders are expecting just that with a sustained imbalance between supply and demand pushing up prices until the introduction of liquefied natural gas in 2006. As you can see a multitude of factors signal our positive outlook on MXES.

Editing Chairman


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