Bought into IVE this morning, purely on speculation only... small time though. Don't know much about them though ! in for a penny in for a pound and all that.
Got out of TPG (dead loss and falling away fast)

from todays ic mag
Irvine Energy (IVE)

Created:
31 July 2008
Written by:
Martin Li

BULL POINTS:

Highly prospective acreage

Production set to rise fast

Low cost structure

Fully financed drilling programme

BEAR POINTS:

Shale profitability has not yet been confirmed

Niobrara project has suffered production delays

Irvine Energy develops onshore oil and gas projects in North America and has three primary projects - in Oklahoma, Kansas and Niobrara. In all three developments, Irvine focuses on shallow, and therefore low cost, drilling in fields close to existing infrastructure and support services. Oklahoma and Kansas are especially prolific oil and gas producing areas. From zero production at the beginning of 2008, Irvine will soon be generating sales from all three projects, with daily production expected to rise significantly over the second half of 2008 and into 2009, as the company revives old wells and brings new wells on stream.

Most current sales come from the Oklahoma project, which covers 50,000 acres over which Irvine holds a 50 per cent interest. What makes Oklahoma particularly attractive is that, in addition to providing multiple conventional hydrocarbon formations, Irvines acreage offers considerable potential from less conventional sources, such as shale gas and coal bed methane.

Shales are low permeability reservoirs that require artificial stimulation to make hydrocarbons flow sufficiently so that they can be extracted. Although Irvine still needs to drill to confirm the profitability of its shale gas deposits, Oklahoma shales are known to be rich in hydrocarbons and have generated much of the oil and gas found in adjacent conventional reservoirs. Coal bed methane is natural gas that occurs in coal seams and is extracted by drilling.

Oklahoma's diversity of highly prospective opportunities provides Irvine's greatest upside potential. The company will drill a significant number of wells over the next couple of years, including a horizontal shale well from which a progress report is expected in September. In late 2008, it expects to begin drilling to evaluate the Oklahoma project's coal bed methane potential. Success in any of the conventional, shale gas or coal bed methane developments is likely to boost the company's valuation materially.

BOUGHT SOME MORE TODAY.:)

Woodie... thank you for the post of the I.C. article. It looks good and although there may be a few disappointments along the way, we should see the sp at a much higher level than where we're at today. (imho).. onwards and upwards !

skyhigh no probs

shame the market did not take to the article straight away,starting to move up now.

Moving quickly now Woodie :-)

just been having a look at a few other O & G companies in the AIM market with around the same or more shares in issue than us and they have fewer prospects and potential and they are near enough at least double our SP / market cap. If we can get some production figures to the market, coupled with our potential I can see us doubling very quick from here. This may sound like a ramp but looking at the other co's AMER & PCI just to name a couple. 2.7p is masasively undervalued and I would say I can see 5.5p+ very soon. All imo etc dyor but look at other co's like I mention and then couple it with the potential we have and it will be pretty simple to see we have massive upside.

Just a reminder, we are currently 2.7p AND.......

"Broker Evolution Securities puts it another way. It has estimated that the current 2P and 3P reserves in Kansas and Oklahoma projects are valued at almost the current share price ( around 3.7p) based on long term assumptions of US$100 a barrel for oil and US$10 a thousand cubic feet for gas.

The Broker continues: Vertical and horizontal wells are currently being evaluated in the Woodford Shale. Success here would start a movement from the substantial contingent resource base to reserves. We estimate that even risked at 1 in 5, the current shale gas resource could be worth 12P/share if moved to reserves. In addition we do not ascribe value to the CBM prospects in Oklahoma, but this could change in 2H08 when drilling starts".

fefatgreek
"few other O & G companies" apart from SER

GOOD START TODAY :)

driver,

You mean SER - producing 200bopd+ NET, with CBM acreage too, market cap currently just 6m?

martinl
You got it in one.

Looks like rollover day.

ser- its holding, but dont see any buyers yet!
ive- big up moves,august, we should expect some news soon. good one i hope!

A COUPLE OF EXAMPLES TO REFRESH THE MEMORY

MKT CAP SHARES IN ISSUE SP
AMER 42.34 806.43 5.25P
PCI 60.43 736.92 8.20P

STATUS: NON PRODUCING

MKT CAP SHARES IN ISSUE SP
IVE 21.24 738.67 2.875P

STATUS PRODUCING: FULLY FINANCED ON DRILLING, HUGE AREAS OF POTENTIAL WITH RAPID DRILLING PROGRAMMES IN AYRES, SHALE OIL, KANSAS, OKLAHOMA, NIOBRARA. PRODUCING AND USING 3D TO DECIDE WHERE TO DRILL. EVO TARGET 11P. GOOD INVESTORS CHRONICLE WRITE UP. BP BUY NEXT DOOR. AND "The management of the group believes that before too long, they will be offered a deal from one of the oil market big beasts".

Should we really be 2.875p?

we are using 3D siesmic to drill our multiple stack prospect in Ayres and I am quite impressed with it.

See this snippet I found on the internet...

'In order to record data with sufficient density over large areas, we require a large number of recording channels. The operations of 3D are considerably more elaborate than 2D and the daily cost of crew is substantially increased. However, the rewards include fewer dry holes, more optimized well locations, guidance for horizontal drilling projects, more complete evaluation of mineral rights and better understanding of the nature of prospects'.

'Although 3D does not remove all exploration risk, it generally improves success rates and productive wells will more often be on optimal locations and should deliver better production and exhibit slightly longer life. One client who recently recorded a 3D over a well developed pool stated that six to ten of the dry holes associated with pool development would obviously not have been drilled if the 3D data was available prior to drilling. The costs of a 3D program may seem high, but the above figures indicate that exploration and development efficiency can be considerably enhanced by knowledgeable application of the 3D method'.

-----

This is what IVE are using on Ayres.


http://www.anwr.org/techno/3dseismi.html

Accumulate!!

why ?

" Oklahomas diversity of highly propesctive opportunities provides Irvines greatest potential. In September expect updates from a horizontal shale well and later in 2008 from drilling of the coal-bed methane potential.

Current sp only values Irvine at current known existing reserves.

Success in ANY of the conventional, shale gas OR coal-bed methane developments is likely to boost the companys valuation materially"

I have been adding on several occasions as I expect >4-5p before the end of the year and upwards towards 10p in 2009 as Irvine are able to increase their reserves.
Add to that the big players sniffing around this area and there is upside potential either way, successful drilling and/or buy out.

Coppyed from a advfn poster.

First Oil sales mentioned from IVE (via an excellent report from a poster who attended the AGM)

http://boards.fool.co.uk/Message.asp?mid=11162352

"At the AGM, the board said:
* Kansas is currently producing between 120-150 bopd net sales."