VANCOUVER, British Columbia--(BUSINESS WIRE)--March 25, 2014--
Dejour Energy Inc. (NYSE MKT:DEJ / TSX:DEJ), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, advises that effective April 1, 2014 it has revised its arrangements for processing its Piceance Basin Kokopelli natural gas production. Under the modified contracts DEJ will maintain its dedication commitment to Williams Field Services Company, LLC (Williams) now for the duration of a 15 year contract, but will be relieved of its obligation to deliver the current production to Williams until Williams can accept Dejour's gas at their yet to be completed Parachute Creek Cryogenic plant, expected by July 1, 2016.
In the interim, Dejour will deliver its gas and liquids through the Enterprise Gas Processing, LLC (Enterprise) system to the Enterprise Meeker cryogenic processing plant where Dejour will receive significantly improved value for the residue and natural gas liquids attributable to the Dejour gas production. Under this arrangement, it is estimated that the volume of natural gas liquids recovered from the Dejour gas stream will improve by more than a factor of four times, even if Dejour elects to operate in an ethane rejection mode in its Enterprise contract. To illustrate, at a $4.00/MMBtu price for residue gas and at current prices for natural gas liquids, this enhancement is expected to result in more than a 20% improvement in the net value (after all costs, taxes etc.) realized by Dejour for its wellhead production.
Upon completion of the Williams Parachute Creek plant in 2016, the Company expects natural gas liquids yields to be comparable to those realized through Enterprise under these interim arrangements.
Dejour is thankful to Denver based EnVent Energy for its assistance in negotiating these contracts.
MusclePharm (OTCQB:MSLP) is a fast growing sports nutrition company with expected sales of over $100 million for FY 2013 and a market cap of approximately $70 million. Based on my analysis below, I believe there is significant upside potential for the shares over the next 3 months as the company releases FY2014 guidance and updates on the progress on various initiatives that have taken in place in FY2013.
•The current share price does not reflect the fundamental improvements in the underlying business, which has transformed the company during FY 2013.
•There is a significant valuation overhang on the shares from the on-going SEC investigation and the pending NASDAQ uplisting, both of which I expect will be resolved within the next 3 months.
•Currently trading at around $8, the shares appear to be significantly undervalued. Based on conservative assumptions on growth and profitability I derive a fair value of around $14 per share.
•Recent insider purchases by MusclePharm management and the announcement of a share repurchase program further support this observation.
•The company's strategic development has been financed by a group of investors led by Phil Frost (CEO and Chairman of Opko Health (OPK)) who invested $2.5 million through a common share offering at $10.50 per share in August of this year. MusclePharm raised $12 million in February 2013 at $8 per share
must be planning on some profits.
Its a penny stock, did anybody feel this wasn't a stock with a some issues? They have significant assets, different than most companies at these levels.
This is a real opp for some who are not in. ADDED AT .12 THANK YOU.
Market cap less than $100 million and revs over $100 million a year. This stock is heading higher.
You people on this board don't get it. They are building this company up, they are growing. Get a clue.
IT'S CALLED GROWTH.