IOG *** Alert *** 120ft pay zone

[Pachino]

This company listed 18th Jan and has already just hit pay zone oil/gas
73mil registry.
Announcement today, this is a must check out.
This company has not been recognised as yet.

[mark100]

I was a fan of Incremental Petroleum before it was taken out. Same management teaam behind IOG. These guys like to keep costs low and keep the cash flowing

[skeet]

Bought IOG today, 120ft Net pay, well to be a producer in the coming fortnight.

Posted earlier in another thread on this one, looks good.
"The well was drilled in record time" must have a good team on board

[Pachino]

From HC
"I did like this from the Strachan report and was happy the market gave me some time to research after today's Ann"

"Strachan Corporate estimates that Incremental Oil & Gas can
increase production from its current 220 BOEPD to 300 BOEPD by
Q1, 2011 and to over 1,000 BOEPD by late 2011. By 2013, further
production increases towards 2,000 BOEPD would enable the
company to meet its target of self-sustaining growth, while paying
a dividend.

Strachan Corporate assesses a total risk adjusted valuation target
of 45 cents per share on a fully diluted basis. Production and
development assets underpin a value target of 31 cps, while
exploration adds 8 cps of risked upside for Incremental.

The company?s high risk Raven Pass exploration play holds
potential to add over $1 per share to valuation. Retention of a
50% WI in a 30 mmbbl discovery is assessed as having a value of
$1.02 per share to Incremental, while discovery of 150 mmbbls
would be worth over $5 per share to the company."

http://www.incrementaloilandgas.com/irm/Company/ShowPage.aspx?CPID=977&EID=51882295&PageName=Strachan report


Plus the MD Gerry McGann owns over 22% of shares so would be sufficiently motivated to perform IMO

[Pachino]

Has anyone else been looking at this, i wouldn't mind some more feedback.
Skeet and Mark, care to add some more conversation.
IMO this has been overlooked by the market, a company that can add $$$$ to the current SP and it looks like that will not be far off. JMO

[Pachino]

Announcement today

After success of H&P #2 well last week, another well, Smoot #1 well spudding this week 5 day drill time, and being drilled as a producer.

[trackers]

Hiya Pachino, do you know if the Strachan report valuation included success at H&P #2?

[Pachino]

Originally Published Thursday, 27 January 2011
Incremental Hits the Mud Running (IOG)

Recommendation: Incremental is a speculative
buy. The stock is a case of backing the people,
all of whom have track records for straight
dealing, technical and financial prowess and
commercial success.
Despite torrential rain along the Californian coast line, Incremental Oil & Gas has
lifted production of oil and gas during the December quarter. Additional gas sales
from its recently completed C7 well, boosted daily gas flows to 414 Mcf, while total oil
flows were a modest but steady 192 BOPD, generating revenue of around $1.5 million
per quarter.
Drilling of H&P#2 well at the 100%
owned Sheep Springs is planned for
the March quarter. A successful
outcome with penetration of the
deeper Phacoides and Oceanic
Formations, has potential to double
IOG?s current oil production by
midyear.
At Round Mountain, Incremental
has 320 acres and plans to drill up
to 5 horizontal wells during 2011,
to develop an estimated 2C
resource of 4.1 million barrels. The
18-200 API oil from Round
Mountain attracts an estimated
price discount of 7.5% compared
with West Texas Intermediate
crude (WTI) pricing. StockAnalysis
believes that development of this
portion of the Round Mountain field,
commencing in H1 ?11, should
e s t a b l i s h p r o d u c t i o n f o r
Incremental at over 300 BOPD and
up to 1,000 BOPD by mid-2012.
First horizontal well is in planning
after weather related delays to
preparation of a drilling pad.
(Continued on page 2)
In the longer term, Incremental will target a significant prospect at its 100% held
Raven Pass project. This deeper target, along strike and to the north of known
oilfields, has potential to hold 200 mmbbls of recoverable oil reserves and up to
500 Bcf of gas. Early work will involve low risk seismic acquisition and potential
farm-out for a drilling programme in 2012. If Incremental retains a 50% interest
in a modest 30 mmbbl target at Raven Pass, discovery would be worth over $1 per
share. StockAnalysis estimates that existing production plus near term oil and gas
development projects underpin a value of 35 cps for IOG, with risked exploration
adding a further 8 cents of risked value.
The Board appears to agree with StockAnalysis as members buy stock on market

[skeet]

Interesting reaction to what I thought today to a pretty positive announcement today.

[trackers]

Doing better today Skeet... I picked some up yesterday for a short trade (probably sell when HP2 comes online but we'll see)

[Pachino]

Trackers, the report was published before they kicked off drilling. My latest post should give you some indication where the SP will go once they get their reserves quantified. I spoke with Gerry McGann on the weekend and I got a very good feeling about this company. they are very motivated and possitive about their future.

[Lego_Man]

So were GGP...

[Pachino]

Announcement; Smoot #1 well spudded today 5 day drill time.
These guys are off to a flying start.

[skeet]

Interesting reaction to what I thought today to a pretty positive announcement today.

ditto today, like the look of the company but volumes traded are disappointing giving the speed that these guys work. I guess actual figures from drill results will be a big boost.

[Huang Chung]

Panchino, thanks for the heads up on this one. Been accumulating around these levels.

Not going to shoot the lights out, but looks to be a nice low risk producer with plenty of low risk potential growth.

Raven Pass could be a kicker though, when they get to drill it.

[Pachino]

HC, Gerry seemed very excited about the prospect of Raven Pass.

[trackers]

Dominating

--

Smoot #1 oil discovery initiates IOG’s second oilfield project

Incremental’s Smoot #1 has intersected at least 100 ft of net oil bearing reservoir between 950 ft and 1500 ft. Excellent oil shows were seen over the same interval and a detailed review of the discovery is continuing. Four cores were cut to gain physical samples of the reservoir between 1050 ft and 1167 ft. The well was drilled to a total depth of 1875 ft where basement was intersected. Wireline logs including image logs, pressure measurements and sidewall cores were run and the casing cemented to total depth. The rig has been released with the well drilled below budget.
Detailed analysis of the complex wireline logging suite and core data will take some time. A further announcement will be issued when a full report is available.
Gerry McGann, Managing Director of Incremental Oil and Gas commented, “The Smoot #1 well appears from this early data to be an excellent result, but care must always be exercised when evaluating early data. With two successful wells in our first month since listing, Incremental can now plan with confidence to build production from a portfolio of projects. Both the Smoot #1 at Round Mountain and H&P #2 well in Sheep Springs will be completed as producers in the coming weeks.”

[Pachino]

Announcement today.
We struck oil again.............Smoot 1 delivers 100ft
2nd success since listing in January.

[Huang Chung]

We struck oil again.............Smoot 1 delivers 100ft


Geez we're good :cool:.

Important to note that this isn't just another well, it's another project.

[mickey2]

Hi Pachino
Thanks for the heads up on IOG. Bought a few yesterday.
Lol M2

[Huang Chung]

Being a vertical well, Smoot 1 should add around 50 barrels a day. This well was all about testing, not production. It's the follow on horizontal wells that will be meaningful producers.

I've looked at the technical report from the prospectus, and 100ft seems to me to be a bit on the light side. Anyone else interpret it that way?

[Pachino]

My thoughts go out to all caught up in this terrible event here in CHCH and hope your losses are only material and your loved ones are safe and well.

Hi all, back on line with mobile broadband,
Why the pull back in S/price can anyone update the last few days for me, thanks P

[Huang Chung]

Hi Panchino

Firstly, it sound like you're OK, and I trust that your family and friends are likewise. Oz is feeling your pain, and we're with you guys all the way.

I really think the market has currently got the pricing fairly right. The run up in price seemed unjustified to me, as IOG share price already has baked into it a sizable increase in production (current mkt cap is way beyond what you'd expect for a 200bopd producer). I think its a very high probability that production levels will soon justify the faith the market is puting in IOG, and it will then be onwards and upwards from there.

[Pachino]

Announcement out; IOG posts maiden profit $588t
This only gets better.

[skeet]

And still riding under the radar, looking good for a long hold than first thought but happy to keep topping up.

[Oiler]

And still riding under the radar, looking good for a long hold than first thought but happy to keep topping up.a

Definitely riding under the radar SKEET ;)

These guys made a presentation today at the O & G show here in Sydney, which was impressive. They are very smart and creative about how they look to improve and increase production from areas in and around Bakersfield that the majors have long thought were done. Great cashflow, conservative expansion and a group of clever guys.

Its a buy for me :cool:

[skeet]

Cheers Oiler, will be good to hear you thoughts if the April trip is still on.

[trackers]

Welcome aboard Oiler - Whilst production is modest at present these guys have an amazing hit rate (so far) and a good track record... so with a rising production portfolio, rising oil prices, and switched on guys at the helm all looks good to me...

Hope everything's all good in your neighbourhood Skeet

[Pachino]

Seems to have been over looked, there is a BRR broadcast out on the 17th Feb also one in January, both a very good listen.

[Huang Chung]

Smoot #1 tests at 100bopd.

The independent geologist's report in the prospectus suggested that production from this first well would be around 50bopd.

"We will now proceed to rapidy develop our lease in Round Mountain. This development will probably involve as many as ten new vertical and horizontal wells, targeting all of the pay zones identified in Smoot #1."

http://www.stocknessmonster.com/news-item?S=IOG&E=ASX&N=532436

[Pachino]

Incremental yields oil, gas profits from year dot

John Beveridge From: Herald Sun March 23, 2011 12:00AM

IT is a very rare thing to come across a junior oil and gas company with a strong focus on immediate cash flow, profits and eventually - cough, splutter - dividends.
Normally smaller oil and gas companies are on to a "sure thing" - they just need you to provide plenty of cash so they can drill another hole to prove it.

Well, the team from Incremental Oil and Gas are very different from most of their West Australian cousins, being cut more in the mould of a mini-Wesfarmers than to an Alan Bond template.

Having graduated from Incremental Petroleum, which fell to a profitable takeover in 2009, a very similar team led by experienced managing director Gerry McGann had another crack with the formation of Incremental Oil and Gas in July 2009.

Since then Incremental has built up an impressive array of producing onshore wells in California, many with significant exploration potential and production upside.

Unusually, most are 100 per cent-owned and operated by Incremental, keen to avoid the joint ventures that litter the oil and gas exploration space like confetti.

While California might seem an odd place to look for oil, very few mid-sized companies operate there and significant hydrocarbons were left untapped.

Of the 452 oil companies in California, only 57 produce more oil than Incremental and the San Joaquin basin is still an incredibly rich oil source, with 10 times Australia's total reserves.

Due to all that activity and available drill rigs, onshore drilling costs about only a quarter of Australian prices, with the chances of hitting oil much higher.

Gerry said Incremental was not afraid of exploration but kept the risks of dry holes at bay by never betting more than 10 per cent of the company on it.

Having produced an after-tax profit in its first year, Gerry said Incremental aimed to increase unrisked reserves and resources by doing seismic tests, drilling new wells and re-entering and testing old ones.

Acquisitions are not out of the question, nor Incremental growing considerably over the next couple of years.

I rate it a rare straight buy in the junior oil and gas space, due to strong cash flow and low-risk/high-reward exploration.

[Huang Chung]

Incremental yields oil, gas profits from year dot

John Beveridge From: Herald Sun March 23, 2011 12:00AM

IT is a very rare thing to come across a junior oil and gas company with a strong focus on immediate cash flow, profits and eventually - cough, splutter - dividends.
Normally smaller oil and gas companies are on to a "sure thing" - they just need you to provide plenty of cash so they can drill another hole to prove it.

Well, the team from Incremental Oil and Gas are very different from most of their West Australian cousins, being cut more in the mould of a mini-Wesfarmers than to an Alan Bond template.

Having graduated from Incremental Petroleum, which fell to a profitable takeover in 2009, a very similar team led by experienced managing director Gerry McGann had another crack with the formation of Incremental Oil and Gas in July 2009.

Since then Incremental has built up an impressive array of producing onshore wells in California, many with significant exploration potential and production upside.

Unusually, most are 100 per cent-owned and operated by Incremental, keen to avoid the joint ventures that litter the oil and gas exploration space like confetti.

While California might seem an odd place to look for oil, very few mid-sized companies operate there and significant hydrocarbons were left untapped.

Of the 452 oil companies in California, only 57 produce more oil than Incremental and the San Joaquin basin is still an incredibly rich oil source, with 10 times Australia's total reserves.

Due to all that activity and available drill rigs, onshore drilling costs about only a quarter of Australian prices, with the chances of hitting oil much higher.

Gerry said Incremental was not afraid of exploration but kept the risks of dry holes at bay by never betting more than 10 per cent of the company on it.

Having produced an after-tax profit in its first year, Gerry said Incremental aimed to increase unrisked reserves and resources by doing seismic tests, drilling new wells and re-entering and testing old ones.

Acquisitions are not out of the question, nor Incremental growing considerably over the next couple of years.

I rate it a rare straight buy in the junior oil and gas space, due to strong cash flow and low-risk/high-reward exploration.

Relaxing on Moreton Island for a few days, so not really up with all the market news. Was wondering why IOG went for a bit of a run today, and can now see why. Article nicely sums up the reason we're in the stock, eh Panchino....

[Pachino]

H/Chung
Yes a fantastic story unfolding here. I missed the boat last week @32.5 low, I sat back on it.....damn ! but am very happy to be in on this from 36. It seemed that this is being played, almost bot trading yesterday, some small trades were seen.

PS; HC thanks for your kind thoughts and words at the time of the CHCH Quake, Cheers P.........Enjoy your stay on Moreton Is.

[skeet]

What a bulls up today



H & P #2 flows 275 million cubic feet of gas a day

Incremental’s H & P #2 at Sheep Springs has flowed gas at a rate of 275 mcfgd (46 boepd)...

Changed to


H & P #2 flows 275 thousand cubic feet of gas a day

Incremental’s H & P #2 at Sheep Springs has flowed gas at a rate of 275 mcfgd (46 boepd)...

Shouldnt have fooled to many you would think if they read the ann, as only the heading was incorrect, but the price rocketed from 38c to 45c then back to close of 37c.

[Huang Chung]

Shouldnt have fooled to many you would think if they read the ann, as only the heading was incorrect, but the price rocketed from 38c to 45c then back to close of 37c.

Can't say I was overly impressed by the stuff up, or the result for that matter.

[whipit]

First time posting, fair while observing. Anyway heres the annual report

http://www.stocknessmonster.com/news-item?S=IOG&E=ASX&N=535232

[trackers]

Smoot1 flowing at 102 barrels a day. $250k a month profit = Payback of well costs in 2 months. impressive..

http://www.stocknessmonster.com/news-item?S=IOG&E=ASX&N=542790