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To
OTC Journal Members:
We have not published since July
6th. We normally publish two to three times weekly, however our editors
were all on vacation last week. We spent time evaluating the future of
the OTC Journal. There will be some changes as we prepare for the
next bull market. We will be implementing new strategies to allow the OTC
Journal to continue its role as the leading source of ideas in small
and micro cap stocks.
One word sums up investor mentality
right now- APATHY. Investors simply have no
interest in the market. Coming of its April low, the NASDAQ rebounded
up above 1900 on May 17th. Over the last three months NASDAQ has
been drifting listlessly, range bound between 1950 and 2100. Investors
are bored. Large sellers are gone, but buyers have not returned. There
is more urgency to get out of stocks on bad news than into stocks on good.
In this vacuum of interest microcaps
are drifting down on light volume creating low risk entry points
for investors with a time frame past the summer doldrums. Earnings results
are poor, but this was already anticipated by the market and priced into
stocks at the April lows.
Microcap stocks may get low enough
to begin bouncing as vulture investors jump in at levels where stocks are
ridiculously oversold.
Energy Power Systems (OTC BB:
EYPSF), one of our featured companies for 2001, came out with news
today after the close which could be the catalyst for a rebound in the
stock. The stock surged to nearly $5 in late May, and his since drifted
down to the $2.50 level on light volume.
If you made money on the stock earlier
in the year, now is the time to look to re-enter for potential profits
or continue to accumulate for growth.
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Energy Power
Systems Limited (OTC BB: EYPSF) In the News |
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This afternoon Energy Power
announced the implementation of its summer drilling program for Natural
Gas and oil in Alberta. This aspect of their business represents the wild
card upside for investors.
We had the opportunity to discuss
the current state of the company with management today. Their M&M
Engineering and Offshore Division in Atlantic Canada is working
at nearly maximum capacity. Despite recent small declines in oil prices,
the long term offshore drilling plans by the major oil companies off the
coast of Newfoundland continues unabated.
The company is moving through the
process of obtaining an upgraded listing to the American Stock Exchange
as previously announced. Management cannot predict how long this might
take, but they are well into it.
The company has a core revenue stream
from its producing gas properties and its M&M engineering and
offshore division. This new drilling program represents an opportunity
for investors to enjoy an exciting return on their invested capital
if the company makes a prolific find. As depicted in the images below,
exploration targets are close to existing producing and profitable wells.
This news should spark a rebound
in the stock price. Investors love a situation with low downside risk from
a core, cash flow business coupled with high upside potential.
Here is the complete text of the
news release for your review:
ENERGY POWER SYSTEMS LIMITED
NEWS RELEASE
EPS ANNOUNCES SUMMER EXPLORATION
PROGRAM
Toronto, July 18, 2001. Energy
Power Systems Limited ("EPS" or the “Company”) (OTC BB: EYPSF) (CDNX:
YPX) (www.epsx.com) is pleased to announce that its Oil & Gas Division
has commenced its summer exploration program.
The multi well program will initially
be focussed on the Company’s core producing property located in the Sibbald
area of Alberta, Canada. At present the Company has interest varying from
25% to 50% in 10 sections or 6400 gross acres of land and is currently
producing gas from the Bakken zone. The Company’s technical advisors have
proposed a program to drill for Viking and Colony gas, workover Section
6-28 for Belly River gas and re-work Sections 7-30 and 12-29 for
Glauconite oil. If successful the program could double current production
of gas and add 100 barrels per day of oil production from the property.
Further seismic work and geological modeling could indicate additional
drilling locations and enhance production potential.
The Company recently acquired a 33%
interest in a section of land in the Cherhill area of Alberta and a 35%
interest in a quarter section of land in the Farrow area of Alberta and
intends to drill the properties as part of its exploration program. The
Cherhill prospect indicates a 2.5 meter (approximately 8 feet) natural
gas pay zone in the lower Belly River formation. The Farrow property is
prospective for Glauconite oil. The Company earned into the Farrow prospect
by purchasing 4 square miles of 3-D seismic data covering the Farrow prospect
and intends to drill into a feature that could warrant a multiple oil well
program.
The Oil & Gas Division also has
a 25% interest in 6 exploration permits covering 525,857 gross acres on
Prince Edward Island (PEI), Canada. An exploration program focussing on
geophysics has been ongoing with seismic sections and maps being scanned
and put into digital format - 36 seismic lines, representing approximately
650 kms (411 miles) are being processed. Prince Edward Island is prospective
because of its geological setting. Well logs and adjacent well tests confirm
the presence of hydrocarbons, and the adjacent Sable Island Gas pipeline
delivery system have all improved the economic potential for P.E.I.
The summer exploration program is
designed to focus on lower risk opportunities to add production and reserves
to the Company’s Oil & Gas Division. The Company intends to concentrate
on the exploration and development of natural gas reserves but has included
oil prospects for some diversification. The budget for the summer exploration
program is anticipated at approximately (CDN)$1.0 million dollars. Capital
resources are being reserved for the acquisition of additional land opportunities
and other producing properties.
Energy Power Systems Limited operates
through the co-ordination of its subsidiaries into an Oil & Gas
Division, a Power Division and an Engineering and Offshore Division.
EPS issued and outstanding common
shares: 6,183,419
Certain of the statements contained
in this news release are forward-looking statements. While these statements
reflect the Corporation's current beliefs, they are subject to uncertainties
and risks that could cause actual results to differ materially. These factors
include, but are not limited to, the demand for the Corporation's products
and services, economic and competitive conditions, access to borrowed or
equity capital on favourable terms, and other risks detailed in the Corporation's
Form 20-F and Annual Report.
The Canadian Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy
of this release.
For further information contact:
Sandra J. Hall, V.P. Corporate Affairs
Energy Power
Systems Limited
www.epsx.com
(416) 861-1484.
(416) 861-9623 fax
Energy Power Systems Limited
Suite 301, 2 Adelaide Street West, Toronto ON M5H 1L6
www.epsx.com
Telephone: (416) 861-1484, Facsimile: (416) 861-9623
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