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 International Sovereign Energy Corp. (ISR.T) & (

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Number of posts : 25
Registration date : 2008-06-10

PostSubject: new well hits in Pakistan   Thu Jul 31, 2008 11:10 pm

This is a nice success. There is a second well that will be drilled immediately following completion of this first well. Testing at 200+boepd net to Should boost production well beyond 1000boepd. Q1 produced 817boepd avg and .04eps and .14 cashflow. New production from this well should boost cashflow to near .20/qtr. is selling for a 1 X cashflow ratio. Ridiculously cheap with more wells to connect and another highly prospective well to drill in Pakistan. Note that the test was before acid washing the well so production could increase after completion. Bobwins

Sukkur joint venture update - Pakistan
Thursday July 31, 5:33 pm ET
<< TSX: "ISR" Shares Outstanding: 13,928,084 >>

TORONTO, July 31 /CNW/ - International Sovereign Energy Corp. (the "Company") is pleased to report that the Koonj Well No. 1A in the Sukkur Exploration Block, in which the Company has a 15% working interest ("WI"), has been successfully drill-stem tested with a gas flow rate of 8.61 MMCFD (1435 BOED). The gas flow rates from the Sui Main Limestone are expected to increase significantly with acid stimulation treatment which will be carried out during the upcoming weeks. Stimulation results will be released upon availability.

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The Sukkur Joint Venture (SJV) is comprised of Mari Gas Company Limited, the operator, with a 50% WI, Petroleum Exploration Limited, a Pakistani exploration and production company with a 35% WI and the Company, as mentioned above, with a 15% WI. SJV is also exploring 2 other prospects within the Sukkur Block. The drilling of Structure 'B', which covers a 4.1 sq. km area, is expected to immediately follow the completion of the first well. Both prospects are within 5 km from a main gas pipeline so that a discovery can be brought on stream on a fast track basis.
International Sovereign Energy Corp. is an oil and gas exploration, development and production company with offices in Calgary, Alberta and Islamabad, Pakistan and is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.
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PostSubject: change of control   Tue Jul 01, 2008 9:44 am

Last week a dissident board was elected at This is a low float company and apparently a Cannacord broker had a bunch of clients in the stock. He sided with the dissidents and they threw the old CEO and CFO out. The dissidents had no oil/gas experience. I was shocked they could pull this off but it's done. CEO has over a million shares out of ~14million so if he decides he wants out, he is going to crush the price. Of course, he will likely try to sell into strength.

They are currently drilling in Pakistan and could have big news out in the next few weeks. To add to the soap opera, Scotiabank sent a letter to the new mgmt and told them the change of control violated the bank's loan convenants and they could pull their 6 million line of credit. With no oil/gas experience on the board, the bank would have every right to bail. Board could bring in an experience oil/gas guy as CEO and solve the problem if the bank thinks he has the right credentials.

We'll see how this turns out. My thinking is that new mgmt had planned to pump this thing up and sell out. Bobwins
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PostSubject: International Sovereign Energy Corp. (ISR.T) & (   Wed Jun 11, 2008 9:30 pm

International Sovereign is an undervalued ngas play. They had C$.14 cashflow in Q1 on 817boepd. They are predominantly ngas and have just announced they are now over 1050boepd. They had drilled three wells in Q1 but couldn't complete and hook them up due to Spring breakup. Based on their current price of C$1.63, they are selling at a forward annualized price to cashflow of about 3. ISR has excellent reserves with a 12+yr reserve life index.

Due to Spring Breakup, Q2 should be very similar to Q1. However with the announced production and more wells coming, I expect Q3 to average 1100boepd and at similar pricing to Q1, I estimate they will cashflow C$.21.

There are several upside catalysts for ISR. They have a very low share count of 14 million so any investor interest can have a dramatic effect on prices. They have already announced that they are seeking to sell their Canadian production. At $40K/flowing barrel, this could be worth 40 million. They have also announced they will dividend 90% of the proceeds from the asset sale. That would be somewhere in excess of 2.50/share. If they sell less than all their production, it will still be close to the current share price. I would guess it will take 6 to 9 months to find a buyer with cash, since I doubt they want to take another junior's shares.

So what will investors have left if they don't sell the stock? They will have pay 25% of the costs for a 15% interest in three Pakistani wells that ISR is currently drilling. They are JV with the #3 ngas producer in Pakistan, Mari Gas. They are in the main ngas producing fairway in Pakistan and are targetting big ngas prospects. They expect 250boepd net from their 15% WI so the wells are targetted at 10,000mcfpd. The first two wells are selected from 3D seismic and are scheduled for this month and next.

So ISR is hoping to exit this summer with 500boepd potential from Pakistan. The announcement of the sale also said they will try to sell production but keep exploratory land with upside. Mgmt feels the stock is way undervalued and wants to get market price for the producing assets and still keep the upside from the exploration properties. In addition to Pakistan, ISR has a 50/50JV in Ecuador with the national energy company of that country. They feel they have high end targets there but no drilling dates have been announced.

I think this is a very low risk stock with excellent upside. It's a likely double from the sale and dividend and then whatever upside the drilling in Pakistan and Ecuadore yields. The CEO is experienced in overseas drilling. He took Arakis to a billion dollar market cap before selling out.


Company website

Pakistan drilling update

Interational Update
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