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Patch International Inc.:
Not Letting The Oil Well Go Dry
by Glenn Wilkins - AllPennyStocks.com News Reporter
September 29, 2005 (AllPennyStocks.com Media, Inc.) - The oil
and gas industry - from the way it behaved in the aftermath of
the year's twin disasters named Rita and Katrina - has had
obstacles to overcome both on the PR and production side.
World events and shortages in refining have caused prices to
take an unorthodox rise. Though this might be unfortunate to
the general public, investors in these types of companies have
been able to see some benefit in these particular markets.
One company that may have less trouble filling the ranks of
its fan club is Vancouver-based Patch International, a junior
oil and gas producer, currently drawing revenue from 19 wells
in Saskatchewan. Company literature claims these wells provide
both short-term and long-term cash flow. The firm is currently
exploring opportunities beyond its Canadian backyard to
include Algeria, Tunisia, Libya and Ukraine. Soaring global
demand for petroleum, in response to global trouble (both
natural and man-made) has positioned Patch to capitalize on
global energy projects - particularly in the areas just
mentioned, where the petroleum discoveries can provide maximum
return on investment.
Patch's growth strategy is a fairly simple one: to engage
in joint ventures with worldwide energy companies, acquiring
properties in energy sectors with high growth potential, and
partnering with emerging energy companies sharing Patch's
global perspective. (No dilution to finance these activities
should be required as Patch's investment in Pharmaceutical
investment has grown to $25 million US)
Among Patch's management team, David Stadnyk is president and
CEO, a 20-year veteran of management and corporate finance.
His diverse interests include media, sports management, and of
course, the resource sector with not only Patch International,
but also Goanna Resources, with whom he wears many hats. He
was a founder of Praxis (now Pharmaxis), which has grown from
$200 thousand to $25 million for Patch. His goal is to turn
$10 million into $100 million in the oil and gas sector with
Patch. Just recently, Arun Dey signed on as senior executive
vice president and chief operating officer. The founder of
Dako Energy in 2002, Dey previously had been with Alberta
Energy Company for 18 years.
Two oil properties commenced work in the first half of 2005 in
the neighbouring province of Alberta, one at Bear Canyon in
March; the other, more recently at W5M McLeod near Edson in
mid-September. Tests on the latter turned out remarkably well,
with approximately 250-300 barrels of oil per day. Full
production should have commenced by the end of the month, good
news for an industry given the jitters about supply.
Patch is ahead of some of its competitors in punching holes
in the W5M property and should deliver results of that effort
soon through it all, Patch's shares have not decreased in
value, unlike those competitors, making it an attractive
investment.
As indicated above, Patch International is active beyond
its borders and North America's borders. Visits to Europe and
North Africa by Patch have solidified relationships with
Algerian and Libyan government officials to continue
negotiations for various energy projects.
What probably makes a petroleum company like Patch unique
is that it is also a heavy investor in the Australian
pharmaceutical company Pharmaxis, in which it has more than 11
million shares (half of which have been declared as a
dividend), and is the largest shareholder behind the
Rothschild Group. The market value of these shares is
currently over $20 million USD. Patch plans to use the
proceeds from this investment to bolster its oil and gas
assets just as Pharmaxis' drug discoveries are coming to
fruition.
A recent development with Pharmaxis, incidentally, is that
it is now in Phase II tests on a new inhaled drug aimed at
fighting chronic obstructive pulmonary disease (COPD). The
drug is called Aridol, and the tests are being conducted
throughout Australia on about 140 patients over the next three
months or so. Investors will avidly await news on these tests.
Additionally, this week Pharmaxis announced a global capital
raising led by CIBC World Markets Corp. and Wilson HTM
Corporate Finance Ltd.in Australia that could bring over $100
million AUS into the company.
In July, Patch International underwent a 10-to-one stock
consolidation, by which 100,000,000 common shares became
10,000,000 with a par value of $0.001. It was also on July 25
that Patch's stock symbol changed from PAII to PTII.
Not to suggest that some investors may have missed the
boat, but if they'd noticed this stock and taken the plunge
around this time last year, they'd have doubled their money.
After languishing around 40 cents (all values in U.S. funds
unless specified otherwise) post stock-split in early
February, the price shot up to peak at $1.75 at the end of
August, which also was their 52 week high before settling in
around $1.60 toward the end of a very difficult September for
the oil and gas industry.
With its improving prospects at wells worldwide, its finger
in yet another lucrative pie, and volatility in world events,
(translating to volatility in the petroleum industry), Patch
should provide investors a breath of fresh air, and could
prove a welcome addition to a small cap portfolio.
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