A Look at Bald Eagle Energy
Bald Eagle Energy Inc. [[BEEI.OB]] is an oil and natural gas exploration stage company that owns 18,418 acres on Alaska’s Northern Slope. The company closed the purchase and sale of the leases on September 29, 2008, but they are still in the process of providing information to the state’s Department of Natural Resources. This process is expected to conclude within the next quarter.
Once this property is officially acquired, Bald Eagle Energy will be able to begin generating revenues. The North Slope lease gives the company the exclusive right to drill for and extract oil and natural gas with the initial primary term beginning on February 1, 2007 and ending on January 31, 2012, unless it is extended for production or as otherwise provided under the terms of that lease.
Bald Eagle Energy plans to act as a non-operator, which means that it will not directly engage in exploration, drilling or development operations, but instead seek a joint venture with oil and natural gas companies that have exploration, development and production expertise. This will allow the firm to keep costs down while generating royalty revenues.
The timetable for the next 12 months is to fully evaluate the exploration potential for the lease and plan to prepare the first exploration field operations during the winter of 2010. The bad news is that the company doesn’t have sufficient funding to execute their operational plans and will require additional funds, which will likely be raised through the issuance of additional common stock.
Financially, Bald Eagle Energy generated no revenues and spent $286,441 on General & Administrative expenses. These higher expenses are due to the expenses of hiring a full-time CEO, associated rental of premises, and consulting expenses associated with the preliminary work related to the development of the North Slope lease as well as increased legal, accounting and IR services costs.
In the end, shareholders may be diluted, but the prospects for Bald Eagle Energy could grow down the road. Oil prices are on the rise and Alaska has traditionally been a strong source of oil and natural gas for the United States.
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