TGA - EPG Alerts

[dan_s]

I follow the S-16 stocks very closely. When I see something that really catches my eye, I will send our members an "EPG Alert". You guys should read all of our alerts very carefully.

On Saturday I instructed Kim to send out an EPG Alert on TGA and I announced at our Friday luncheon that, in my opinion, TGA could be going a lot higher. Details will be in tomorrow's newsletter.

Dan

[dan_s]

Those of you that hold TGA should read today's newsletter very carefully.

Dan

[dan_s]

The company that distributes our newsletter had some confusion yesterday. It will be going out to all of our EPG Members this morning. Focus is on TGA. Sorry for the delay.

Dan

[dan_s]

TGA continues to move up. It is now up more than 170% year-to-date. If OXY or Total announce a successful test well on one of the Fractured Granite Basement prospects (both to be drilled this year) the stock price will make a major run.

See this weeks newsletter for details on why TGA continues to move higher. If you need a copy send me an e-mail.

dmsteffens@comcast.net

[MBB]

Dan

I did not get the EPG alert on TGA or the newsletter that came out thos week.

[dan_s]

Are you a Premium Member? All EPG Members (Premium or Basic) get the newsletter which comes out every two weeks. Only Premium Members get the EPG alerts.

If not, and you would like to join, go to the website and click on the Members Tab.

If you are already a member, send an e-mail to Kim Tran at energyprospectus@gmail.com and make sure she has you set up.

Dan

[dan_s]

Today we are getting the pull back that happens whenever a stock makes a significant run. There is nothing wrong. TGA is rather thinly traded and someone decide to take the profits earned in the last few weeks. TGA is going to report a very strong 3rd quarter.

Read my 9/22 newsletter (available to all on the website) for details on TGA.

Dan

[setliff]

yes, maybe an opportunity.

[dan_s]

My estimated "Fair Value" for TGA is now $11.00. They have some big exploration wells that will be drilled in the next 90 days that could significantly increase that.

[dan_s]

One of our Premium Members sent me an e-mail asking what I thought of TGA.

"I enjoyed reading your TGA report during a recent trip to Spain. Also had a chance to read the transcript of TGA's presentation at the Societe Generale Canadian Energy Conference. Ross spends a lot of time attempting to define the extent of the ARTA Structure. They keep trying to find water contact without any water yet. This field may support 100 development wells. Maybe 100 million barrels. Then nearby they are getting started on East Arta. It seems to me that at some point some one may come calling. What should a flowing barrel of oil in Egypt and Yemen trade for? In other words where is this stock going?"

NOTE: Arta and East Arta are in the West Gharib area where TGA is the operator with 100% working interest.

Here is my reponse:

I think TGA is going a lot higher! The West Gharib area has a lot more upside. They have two rigs working it now and a 3rd rig will be coming after it drills some exploration wells at Nuqra (rank wildcats).

Also in Egypt, the East Ghazalat Block has the potential to turn into another major development area for them.

OXY and Total are going to drill some exploration wells with incredible upside this quarter in Yemen.

I talked to some ex-Vintage Petroleum guys and they think Block S-1 in Yemen still has a lot more upside. OXY is drilling on some high quality 3D so look for them to announce some big wells soon.

I also think we will see $90/bbl for Brent crude next year.

Keep in mind that TGA uses the Full Cost method of accounting. The big addition to proven reserves this year-end will significantly reduce their DD&A rate so EPS of well over $1.00 are likely. CFPS could top $2/share. With so much exploration upside, I think TGA deserves to trade at 10X CFPS.