RAY DIRKS Research strongly recommends the common stock of CAMAC Energy (AMEX: CAK), a Houston, Texas- based energy-company, engaged in the exploration, development, and production and distribution of oil and gas. CAMAC Energy focuses on early cash flow and high-return global energy projects with operations currently in Nigeria and China. Principal assets include interests on the Oyo Oilfield, an offshore oil asset in deepwater Nigeria that started production in December, 2009, a 100% interest in the Zijinhuan gas asset located in the Shanxi Province, China and the Enhanced Oil Recovery and Production business in Northern China. The company was founded in 2005 by several former top executives of Texaco and has offices in Hartsdale, New York, Houston Texas, Beijing China and Lagos, Nigeria.
CAMAC Energy – $ 2.41 (AMEX)
Price Range (52 Week) – $6.07 – $2.11
Average Daily Share Volume – 510,000
Price Target – $15.00 within 1 year
Price Target – $45.00 within 3 Years
Shares Outstanding – 143 Million
Total Debt Outstanding – $7 Million
Cash on Hand – $22 Million
CAMAC Energy appointed Byron A. Dunn as President and Chief Executive Officer, effective October 1. Dr. Kase Laval, Chairman of the Board, commented on Mr. Dunn’s record as President and CEO of Global Energy Services, a Houston-based drilling-rig, power systems and equipment manufacturer with operations in the U.S., Asia, and the Middle East, and before that as Senior V. P. of Harvest National Resources (NYSE) where he was the Chairman of its Joint Venture with China National Offshore Oil Corporation (CNOOC) : ” Mr. Dunn spent 8 years with UBS where he was Executive Director of its Investment Banking Group. Early in his career he managed Philbro Energy Upstream Business Development and Acquisitions, and developed technical expertise with oversight of production and reserve engineering support staff in the Gulf of Mexico. He has an MBA from the University of Chicago.” Mr. Dunn said “This is an exciting time to be part of CAMAC Energy. With its recent announcement of positive cash flow and active acquisition opportunities and drilling prospects, the growth potential of this company is abundant. CAMAC Energy has an extraordinary and visionary senior leadership base and a unique set of assets which provides a platform for sustained growth in revenue, profitability, and shareholder value.
The Brief Summary of the Corporate Plan for CAMAC Energy is as follows:
Nigeria — Commence Azo 5 well intervention to reduce gas flow into wellbore and increase oil production , Continue planning with partner ENI to develop additional Oyo producing wells, Progress the Memorandum of Understanding to a Definitive Agreement to acquire ownership of OML 120 and 121.
China — Complete ZJS2 well , Drill additional obligatory exploration well in Zijinshan, Develop 2011 Zijinshan drilling program.
Reasons why to invest now in CAMAC Energy:
FIRST: Organic Development and Exploration Upside in the Prolific Deepwater Nigerian Basin.
SECOND: Completion of the first phase of the Azo development; at least 2 additional producing wells planned for 2011 R2052. – 100% carried by ENI in Oyo, with option to carry up to 30% of future development.
THIRD: Signed Memorandum of Understanding to acquire remaining acreage in OM 120 and 121; includes at least 8 seismically defined lower risk exploration prospects. – ENI is technical operator, and CAMAC Energy would have option to be 100% carried through exploration and development.
FOURTH: Unique exposure to African deal flow through exceptional contacts and experience, both economic and political, of CAMAC Energy’s management and Board of Directors.
FIFTH: Signed Right of First Refusal for all Allied energy and production assets
SIXTH — Qualified as Nigerian indigenous operator , and thus positioned to benefit from the Nigerian Local Content Law, which prioritizes indigenous operators in oil licensing rounds and encourages independent oil companies to divest assets to indigenous operators.
SEVENTH: Over 25 years of regional relationships through majority shareholders and Non-Executive Chairman — Dr. Kase Lawal.
EIGHTH — Opportunity to prove significant gas reserves in Zijinshan Gas Block in China.
NINTH: Strong un-levered balance sheet provides flexibility to find growth acquisitions .
TENTH: Distinguished Board of Directors and experienced management team – SEE BELOW:
BOARD of DIRECTORS :
Dr. Kase Lawal Chairman and CEO of CAMAC International
Chairman of Allied Energy Corporation
Trade Advisor for Trade Policy and Negotiations under President Obama
Commissioner on the Port of Houston Authority
Vice Chairman of Houston Airport Development System Corp.
Byron A. Dunn President and CEO
Former President and CEO – Global Energy Services Former Senior VP of Harvest Natural Resources
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