tcptrace-bugs Sector Watch: (MXES) Energy Prices Soaring.

From: Savvy Investor (
Date: 04/26/04

Message-ID: <000056543d6c$00007ce3$>
From: "Savvy Investor" <>
Subject: tcptrace-bugs Sector Watch: (MXES) Energy Prices Soaring.
Date: Mon, 26 Apr 2004 00:06:23 -0500

May Edition
May 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 Price: $.075

Opinion: Upgraded from Accumulate to Strong Buy

In Related News:

  The exploration and production sector consistently outperforms the S&P 500 when the consensus forecast for crude oil and natural gas prices, in particular, is rising. More...

 Oil prices soar on Iraqi resistance. Futures up on strong demand from China and reports of renewed violence.  More...

In 2003, an average 35 percent increase in gas prices pumped up average oil company profits nearly 10-fold -- by 926 percent. More...

  OPEC oil producers appear to have lost control of a surge in prices that ministers say is being driven by forces out of the cartel's hands. 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 over $5.00+ 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

  Natural gas producers are poised to reap windfall profits as energy prices remain at their highest levels in 15 years. These higher prices are being driven , in part, by recent economic data showing that the global economic recovery is gaining momentum. Increasing demand for energy to power overseas economies is forming a strong foundation of price support. Furthermore, supply is being limited by the recent cuts in production by OPEC.

Higher energy prices translate directly into more profits for oil companies.  (Remember how this winter's price spike in natural gas positively impacted MXES's bottom line.)  Energy analysts are expecting another price spike right around the corner, just before this summer's driving season.

Editing Chairman


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