NEW YORK, July 24, 2003 (PRIMEZONE) -- Heartland Oil & Gas Corp. (OTCBB:HOGC), an independent energy company which owns and operates a new coal bed methane (CBM) prospect in the Forest City basin of northeast Kansas, is positioned to take advantage of a U.S. Geological Survey report that states "Coalbed methane in the Forest City basin may provide a potentially significant contribution to the Nation's future energy needs," according to Investrend Research analyst J. Damien Kolb.
The Company is currently awaiting approval to list on the American Stock Exchange under the symbol (AMEX:HOG).
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"Heartland's 'Soldier Creek' project encompasses approximately 165,000 acres of prospective frontier CBM land in northeastern Kansas to which it holds leases. At 80-acre spacing, this is enough land for approximately 2,000 wells. Heartland management elected to explore Soldier Creek when a privately funded, proprietary analysis of approximately 500 historical drilling logs from previous conventional drilling of deeper hydrocarbon targets revealed the existence of significant coal beds to the North and West of existing CBM sites," said Kolb.
"Mapping reveals the North Engelke area to be the thickest section of the Forest City / Cherokee basin CBM fairway. Coal bed thickness in the Soldier Creek area of North Engelke approaches four times that in the Cherokee basin to the south, where there are active CBM development operations. Approximately 85 percent of the Company's acres under lease are in the Engelke area," he added.
"Heartland Oil & Gas is currently in the development stage and has not generated significant revenues from its operations. As of March 31, 2003 the Company reported approximately $2.19 million in unproven oil and gas properties and no properties with probable or proven reserves," noted Kolb.
"In 2001, GTI (Gas Technology Institute) ranked the Forest City basin as the best CBM exploration basin in North America," Kolb stated.
Kolb summarized the company's financials:
"On March 31, 2003 the Company reported total assets and total liabilities of approximately $3.08 million and $0.75 million, respectively. Total stockholders' equity of $2.33 million reflects a deficit of approximately $600 thousand in development expenses accumulated since inception. Total assets included $2.19 million in valuation of oil and gas properties (unproven) representing $1.56 million in acquisition costs and $624 thousand in exploration costs since inception of the Company. As of March 31, 2003, the Company reported no properties with proven and probable reserves.
"Total liabilities included $682 thousand of 7% convertible debentures, some or all of which were converted to equity through the most recent equity financing. As of March 31, 2003 current liabilities of $510 thousand offset current assets of $888 thousand to yield a working capital surplus of approximately $378 thousand."
Heartland Oil & Gas Co. is enrolled in Investrend Research's unique and pioneering professional analyst program, which facilitates independent analysts to provide financial coverage for shareholders and investors in companies that otherwise would have little or no analyst following. The program is enrollment-based. Enrollment fees for Benchmark coverage are $1,195 per month, and the fees are being paid by the company and are current. Analysts are paid in advance by Investrend Research to eliminate pecuniary interest, and neither the analyst nor anyone associated with Investrend Research may own or trade in the stocks of a company under coverage.
Damien Kolb is a member of AIMR and the Boston Security Analysts Society. He is a Level 3 Candidate for the Chartered Financial Analyst (CFA) designation and a candidate for the American Society of Appraisers' Business Valuation certification. Kolb's security analysis experience covers the equity, fixed income and options capital markets, as well as investment banking and institutional investment management. He held Associate positions at Lehman Brothers and Morgan Stanley and worked as an Analyst at a boutique investment-banking firm. Kolb earned an MBA in Finance from the Weatherhead School of Management at Case Western Reserve University and a Master of International Management degree in Global Finance and Latin American Emerging Markets from Thunderbird, The American Graduate School of International Management. He is president and founder of the Commonwealth Holding Company, Inc. and is an active volunteer member in the United States Coast Guard Auxiliary.
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