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HONG KONG, May 16, 2011 - (ACN Newswire) - Sentry Petroleum Ltd. (US-OTC-BB: SPLM) is a microcap US-based conventional and unconventional energy company focused on oil and gas exploration in the resource-rich state of Queensland, Australia.
The company's most important current prospect (ATP 862/ATP 864) is an approximately 5,760 square mile (14,973 square kilometer) leaseholding with a potential coalbed methane ("CBM") resource of seven trillion cubic feet ("TCF"). The confirmation of the extractable amount of this resource is ongoing, but investors should note that seven TCF represents a significant potential new addition to Australia's current natural gas reserves of approximately 110 TCF.
The company's current focus is completing the exploratory and confirmation drilling and further technical appraisal of this prospect. Within the next month we expect SPLM's outside consultants will complete a new NI 51-101 report, which will provide management and investors an updated independent, industry-standard appraisal and analysis of the potential resource and extractable CBM on the ATP 862 and ATP 864 permits. By the end of Q311 the company expects to complete an exploratory drilling program that will augment the extensive exploratory and technical data already available.
SPLM's current business plan is not to bring this large CBM prospect to final production, but rather to identify and define its potential oil and gas resources and reserves to the point that one or more large energy companies would make a buyout offer. For investors, this approach, if successful, would mean that SPLM would not have to raise the significant level of new capital needed to bring ATP 862 / ATP 864 into production. In addition, assuming the CBM resources and reserves eventually delineated on the project are a significant proportion of the project's currently identified seven TCF potential resource, we expect such a buyout would provide a significant return on current investors' investment in SPLM within the next 12 - 24 months, rather than over the multi-year period it will take to bring the prospect to full production. Share Price-to-Potential Resource/Reserve valuations of similar CBM-related buyouts and mergers in Queensland over the past four years have been well above the CBM resource valuation reflected in SPLM's current market cap.
For the research report in full, please visit http://www.globalalliancepartners.com/gapartner/sentry.html
Contact:
Quam IR
Ms Anita Wan
Tel: (852) 2217-2687
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: (852) 2217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: (852) 2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Press release summary
Source: Global Alliance Partners
Sectors: Gas & Oil, Energy, Alternatives
http://www.acnnewswire.com
From the Asia Corporate News Network
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