Endeavor Moves High on Expected First Sales
Endeavor Power Corporation [[EDVP.OB]] extended its rally today on a surge in trading volume as investors look forward to the company’s first sale. The stock has more than doubled as the company offered updates on the seven wells in production on the Patrick Henry lease and its joint venture deal with Federated Energy. However, will these deals pay off for investors?
Endeavor currently has seven wells in operation on the Patrick Henry lease and the saltwater injection system went online to begin the extraction process on April 10, 2009. As part of a joint venture deal with Federated Energy, the company has also acquired the right of first refusal to acquire up to 51 percent of the working interest in 187 wells owned by Federated.
The Patrick Henry lease is located in the Northeastern part of Oklahoma and will be the first of many projects developed in the area. Development and production of the 13 wells will consist of primary and secondary recovery. Secondary recovery efforts will include water flood and the use of an NCO2 machine to re-pressure existing formations to enhance and increase production.
Endeavor’s joint venture with Federated Energy involves the company providing $525,000, which is being financed, in exchange for a 51 percent interest in certain leaseholds in Nowata County, Oklahoma. In addition, the company received a first right of refusal to purchase an additional 51 percent in all future wells developed by Federated in exchange for $45,000 per well to be tendered by the company.
Currently, Endeavor has offered investors very little guidance of what to expect in terms of the number of barrels per day being extracted and sold. However, Federated guaranteed production of 20 barrels of oil per month from each JV well from its leaseholds in Nowata County. However, prudent investors may want to wait on the sidelines until more details of production levels are made public.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com