DVM - Digital and Voice Media

[adobee]

CHANGE OF DIRECTION FOR THE COMPANY SIGNS EROMANGA BASIN OIL & GAS HEADS OF AGREEMENT ACTIVE OIL & GAS DRILLING PROGRAMME EXPECTED TO COMMENCE MID FEBRUARY 2008 STRATEGIC RELATIONSHIP WITH LEADING US OIL & GAS COMPANY

DVM International Limited (“DVM” or “the Company”) is pleased to announce that it has entered into a Heads of Agreement to acquire the Farmin Rights to Petroleum Exploration Licences (PEL’s) 108, 109 & 112 in the prospective Eromanga Basin within South Australia. ♦ The Agreement will also give DVM a royalty on any gross cashflow generated from PEL 108. ♦ The first of three wells located within PEL 112 is expected to be spudded (commence drilling) mid February 2008. ♦ The Company is also pleased to announce that it has entered into a Management Services Agreement with Holloman Energy Corporation (“HEC”) to develop and explore the Eromanga Basin PEL’s and other domestic oil and gas opportunities.

 

[Miner]

CHANGE OF DIRECTION FOR THE COMPANY SIGNS EROMANGA BASIN OIL & GAS HEADS OF AGREEMENT ACTIVE OIL & GAS DRILLING PROGRAMME EXPECTED TO COMMENCE MID FEBRUARY 2008 STRATEGIC RELATIONSHIP WITH LEADING US OIL & GAS COMPANY

DVM International Limited (“DVM” or “the Company”) is pleased to announce that it has entered into a Heads of Agreement to acquire the Farmin Rights to Petroleum Exploration Licences (PEL’s) 108, 109 & 112 in the prospective Eromanga Basin within South Australia. ♦ The Agreement will also give DVM a royalty on any gross cashflow generated from PEL 108. ♦ The first of three wells located within PEL 112 is expected to be spudded (commence drilling) mid February 2008. ♦ The Company is also pleased to announce that it has entered into a Management Services Agreement with Holloman Energy Corporation (“HEC”) to develop and explore the Eromanga Basin PEL’s and other domestic oil and gas opportunities.

There was no posting for about a year on DVM
Does any one know about this organisation excepting they are investing on few important rigs. The name of company does not match with their business either.
It was apparently delisted before and now went with an IPO .

Regards

 

[bhutos]

There was no posting for about a year on DVM
Does any one know about this organisation excepting they are investing on few important rigs. The name of company does not match with their business either.
It was apparently delisted before and now went with an IPO .

Regards

They are partners with EGO, BFE and LGO in the Star Finch and Lake MacCleod drills which are being drilled back to back and are literally about to spud.

They were previously a bit of a contender because they had great leverage but they won't be requoted until it's too late for Star Finch (unless there are delays) so in effect if it's a duster you won't be able to trade out until it's too late. You're essentially locking yourself in for the results of the first drill. They had to delist because they changed their primary focus and didn't comply with the structure required of an oiler. (this also needs to be taken into account - whether they get enough new share holders to qualify which is a risk factor.)

Looking at the leverage:
(using $1000 profit on the lowest leveraged as of today to work out relative profit based solely on the outcome of the single drill and no other factors)


Star Finch

EGO: $1000
LGO: $2840
DVM: $8240

Lake MacLeod

EGO: 1000
BFE: $1071*
BFEO: $2100*
DVM: $2865
LGO: $2901

I hold EGO and BFEO. EGO to trade and BFEO (held from back when the relative leverage was $4144*) to hold for LM, although I may sell a portion. I was looking at DVM as the highly leveraged entry for SF, but the late requoting has pretty much killed that idea off for me personally.

*Note - The leverage on BFE could drop 31% in 2 years and then 62% in 3 years due to success in their iron ore activities, that said they will be meeting certain targets for the dilution to take place so there is unrelated success built into the dilution. I mention this only because it takes time to develop an oil field and a long term hold may need to take this into account.

Additionally EGO is going to be even more diluted within several weeks, however it's hard to say by how much as the SPP didn't have a particular target so I haven't included it into the equations although it is likely to bring them to ~$950 in the above figures.

Looking at what DVM could get to sp wise on an average success case, SF about 6c on a 15bcf gas only case and about 96c on a 15bcf/7mmbbl gas + oil case (this is a guesstimate on my behalf) and about $1.92 on what I assume is the P50 of a 30mmbbl oil case.

Thats just what I'm going off based on $20 bbl and 65c mcf in the ground values and looking at an average success scenario. If you want to look at absolute maximum potentional (ie far less chance of happening) it's possible SF could hold roughly $3.40 worth and LM roughly $9.58 for DVM so if you see high figures bandied about thats where they come from, you've just got to factor in that on top of being only a ~5% chance of success you've then got a <10% chance it's full to the spill point. So you begin to move from a 1 in 20 theoretical chance to a 1 in 200 theoretical chance.

As ever don't rely on these figures as they are only a rough guide and willl no doubt bear little relation to real world pressures on the sp from other factors and outcomes and DYOR.