EnDevCo Reports Quadruple-digit Revenue Growth
EnDevCo, Inc. on Tuesday announced that its recently filed 2006 SEC Form 10K-SB/A shows a 2,900% increase over 2005 revenues. The over $2 million revenue increase was largely generated by oil and gas sales from the Company's Short Junction Field (Short Junction or the Field) property. Short Junction is comprised of majority interests in the West and Central Short Junction Units and is a fully unitized, 12,000-acre field located in Oklahoma City, Oklahoma. The Field was originally developed by Conoco using vertical wells drilled on a 40-acre well spacing, resulting in oil and gas production from 270 active wells within the leasehold.
The Field currently maintains 24 oil wells and 2 gas wells which produce 205 barrels of oil equivalent (BOE) per day that represents a solid 70% increase in production from April-2006 to April-2007. EnDevCo intends to begin its Short Junction horizontal drilling campaign in May to further increase 2007 daily production by approximately 3,500 barrels of oil and 10,000 Mcf of gas. This increased production, with oil priced at $60/bbl and $6 Mcf natural gas prices, would provide EnDevCo with additional gross revenues of $5,750,000 per month.
Short Junction has also dramatically increased the proved reserves the Company can now book on its balance sheet. EnDevCo's proved reserves increased 12,250% from 1.6 million BOE in 2005 to 19.6 million BOE at 2006 year end.
Project financing for the Short Junction Field is being provided by GasRock Capital, LLC of Houston, Texas, in the form of a recently increased credit facility from $30 to $50 million. GasRock Capital provides "project-based financing" to the oil and gas industry by backing proven management teams that identify high quality projects such as EnDevCo's Short Junction Field. Project-based financing, which is difficult to obtain for an emerging company trading on the OTC BB in the United States, has absolutely no negative effect on ENDE's capital (or share) structure.
The previous numbers are strictly summaries, or portions, of the complete audited financials for EnDevCo's fiscal year 2006. The entire 10K-SB is available online, in the EDGAR document retrieval system, via www.edgar-online.com.
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