LONDON, Aug. 18, 2010 (GLOBE NEWSWIRE) -- Grid Petroleum Corp. (OTCBB:GRPR) is pleased to announce having received an updated review of a financial report by leading research company, Cohen Independent Research Inc.
Cohen Independent Research has incorporated into this update, all the steps that Grid Petroleum has taken in advancing their aspirations in exploration and development.
The updated review looks at the progress made by Grid Petroleum in concluding financial arrangements stating:
"The Company has received an equity funding commitment of $5,000,000, which can potentially be increased to $7,500,00. This will take care of the Company's initial funding requirements and de-risk start-up related risks."
The review continues:
"The Company has received a drawdown of $200,000 from the recently executed financial agreement of $5,000,000-$7,500,000, as a provision for implementing the first stage of a two phase work program, bringing the total of external investment this year to $700,000."
Regarding Price Index Target the report states:
"The Cohen Price Index Target is calculated using 2010 Price-to-Earnings ratio (P/E), Cohen Price-to-Capital Employed ratio (P/CE), Cohen Discounted Cash Flow (DCF) method and Cohen Price Performance Index. The P/E and P/CE are based on market multiples and representative of the broader industry in which the Company operates. The Cohen Price Performance Index is representative of the post coverage performance of all stocks covered by Cohen Research and Grass Roots Research. The last component in calculating the Cohen Price Index Target is the value derived using the long-term Cohen DCF valuation approach."
Based on an average of these methods, GRPR common stock retains and favorable forecast.
The updated report reviews the overall objectives of Grid Petroleum:
"At present, Grid Petroleum is focused on:
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Development of efficient work program to initiate activities related to commencement of operations at its assets in Jonah Prospect
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Evaluate opportunities to acquire additional acreages in prolific regions in U.S. and develop a balanced portfolio of assets
- Grid Petroleum is actively seeking new opportunities, primarily in the U.S. to acquire further assets and/or acquire percentage stakes in producing/part producing operations."
The updated review moves on to assess the more immediate plans of Grid Petroleum:
"Grid Petroleum's analysis of the Schlumberger report by their Chief Geological and Geophysical Advisor, Robert Murphy, has pointed to a phased development for exploration. The Company plans to undertake an in-depth research before commencing exploration activities. Through this analysis, a work program has been determined to secure the most beneficial and flexible conditions for a rapid and effective development process."
As part of its summary Cohen Independent research observes:
"Recent developments are exciting and highlight the long-term potential of the Company's projects. However, it would wise to continue with our initial projections as it might be too early to revise the financial forecasts. Nevertheless, further development regarding the drilling activities at the Jonah prospect will merit a revision in the financial forecasts."
Paul Watts, CEO of Grid Petroleum, commented, "We are excited to have received this updated review from Cohen Independent Research. It highlights the potential of our Wyoming assets, and the steps we have undertaken to develop them in the most efficient and cost effective manner possible. We hope for continued positive news as our exploration there progresses."
The updated Cohen Independent Research report is available to download from the Grid website, www.gridpetroleum.com (then follow link: Investor Resources => Reports).
About Grid Petroleum
Grid Petroleum Corp. (OTCBB:GRPR) is a London, UK based Independent Oil and Gas Exploration Company, with an operational office in Denver, Colorado. Grid has assets in Wyoming, neighboring the prolific Jonah Gas Field. For more information, please visit www.gridpetroleum.com.
Legal Notice Regarding Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning gold or other mineral reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present if and when a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of gold or mineral deposits, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of gold or minerals are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in filings on Edgar of other junior mineral exploration companies with the US Securities and Exchange Commission. This announcement may also contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.