Striker Oil & Gas (SOIS) develops, explores and acquires crude oil and natural gas reserves, operating along the Gulf Coast of Texas and Louisiana, as well as in East Texas and Mississippi. It is speculated that Striker has potential oil and gas reserves of $400 million in Texas and Louisiana. That equates to 32.5 billion cubic feet of natural gas and 973,000 barrels of crude oil. Striker also recently an agreement with Indonesia’s GEO Corporation to find oil offshore of that Asian country.
Texas-based Striker Oil & Gas was founded in 2004 and is already producing oil, a rarity among newly-founded energy companies. Striker’s revenue performance since inception is staggering, with a one-year growth of more than 232 percent and a three-year growth of almost 1200 percent. The company is forecasting 2008 revenue of $5 million.
Striker uses revolutionary technology to find new oil reserves, including sophisticated satellites that orbit the earth finding even the tiniest oil slicks in undiscovered oil reserves. In addition, the company uses two- and three-dimensional sonic equipment to detect oil and natural gas hidden below the earth’s surface.
It is speculated that Striker’s Catfish Creek operation in East Texas could be worth up to $360,000,000 in potential oil and gas reserves. The property is adjacent to wells owned by major oil companies such as Chevron and XTO Energy and these wells have produced hundreds of millions of barrels. East Texas wells are known as “long live” wells, which means they can produce oil or gas for up to two decades.
As global demand for oil continues to surge, this could benefit Striker and its shareholders. The company currently trades around five times 2007 sales with a multiple of less than 16, meaning Striker shares could be worth well over $2, almost 10 times the 22 cents they closed at last Friday. Striker has a market value of $4.5 million and its shares have traded between 10 cents and $1.65 over the last 52 weeks.
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