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American Company Spotlight

 

Platina Energy Group Inc. Website: Click Here

Information As Of July 20, 2007

Exchange: OTC:BB Market Cap: 17.8 Million
Outstanding Shares: 40.2 Million 52 Low / High: $0.045 / $0.51

Price July 20, 2007: $0.442

PLTG Recent Stock Quote and News: Click Here

“Platina Energy Group owns the rights to a proprietary, innovative oil and gas recovery technology with huge potential. The longer term plan for this technology is to joint venture its proven use with a Company specializing in extraction technologies. Presently, the Company is in discussions with potential partners for use of this device."


Overview

Platina Energy Group Inc. is a publicly traded holding company that is acquiring Energy Sector related companies. Platina has made its initial acquisition and plans to acquire several more non-competing, complementary companies. The concept is to build a platform/holding company that mitigates risk for investors by spreading their equity investments across multiple investments through one holding company that acquires technology driven enhanced recovery, drilling, and exploration oriented companies. Platina plans to use a combination of stock, cash, and seller debt to purchase synergistic and accretive companies.


Investment Highlights

  • The oil and gas leases, once developed will dramatically increase revenues and profits.
  • Stock widely held with over 2,000 Shareholders.
  • Platina’s proprietary German Inspired TPU technology provides the Company with a unique competitive edge that improves as reserves are depleted and oil prices increase.
  • The TPU provides a significantly lowered cost basis per barrel for recovery without the problems typically associated with current technologies such as CO2 floods and steam.
  • The TPU is a technological breakthrough that provides the Oil and Gas Industry with cost effective solutions that are environmentally friendly.
  • Platina Energy Group, Inc. announced recently that an independent estimated reserve report for its P. Hawkins Gas Lease in Tennessee indicated a more than $60 million net present value based on the industry standard of a ten-year discounted analysis.
  • The Company is poised to make additional acquisitions to further enhance its long term growth potential.
  • Platina's Infield Development Project in Young County, Texas has a projection of 4-7 times return on the Investment over the life of the wells based on an Independent Geological Evaluation.
  • The Appalachian Basin acquisition represents fifty-five drilling locations on approximately 1,600 acres in the Devonian Black Shale formation in east Tennessee. An engineering report produced by C. G. Collins (independent Petroleum Engineer) states that most of the larger gas companies in America grew to their existing levels by producing gas from this formation.
  • Recent acquisitions have dramatically enhanced the management structure with seasoned, well experienced professionals.

Subsidiaries

Appalachian Energy Division

Appalachian Energy was formed as part of the acquisition of approximately 50 well sites in the Devonian Shale formation. Subsequent to acquisition, the Company expended resources to provide scientific data for the field by geological and petroleum engineering report. This report using conservative natural gas price estimates indicates a net present valuation of the field on a PV10 basis to be in excess of $60 million.

Individual well production estimates extrapolate production at current pricing to be in the $35-42,000 range per month. Pipeline access crosses the field and ample compressor capacity is readily available and in place. Drilling permits for the first four sites are in process. Platina’s resident manager of the field estimates that 50 wells can be drilled and completed within 6 months time assuming no major weather delays.

Young County, Texas Division

Young County is a lease prospect that the Company acquired in fiscal 2006. This field includes currently producing wells and proven reserves worth millions of dollars according to independent data. By industry standards, the Young County prospect would be classified as a stripper well field. However, initial production of oil based on average pay-zone production data indicates that daily production falls in the 20-50 barrel per day range. Also, advancements in recovery technology may be able to increase well productivity by 200% or more.

Phase one encompassing approximately 20 well sites has been committed through a third party joint venture agreement. Under this agreement, Platina estimates that it will have an initial net production allocation in the range of 2,500-6,000 barrels per month. The first well permits have been issued and drilling is expected to commence by the end of July 2007.

Phase two that will have approximately 20 additional well sites is presently available in conjunction with the primary agreement with Zone. Estimated net recovery over time to the investor is approximately 600,000 + Barrels of oil.

Palo Duro Basin, Texas Division

The Palo Duro Basin is a shale formation with additional potential pay-zones above it. The formation is found in West Texas and in parts of Oklahoma. Until Mitchell Energy established a method for completing this formation by way of the Barnett Shale, it was otherwise previously not producible. According to a Morgan Stanley report and subsequent recent data published in a major trade journal, the Palo Duro Basin may be as much or potentially more prolific than the Barnett Shale.

Surrounding data for the Palo Duro Basin shale formation suggests that additional engineering and geological studies be conducted on the 20,000,000+ lease acres that Platina controls. The likelihood many millions of dollars of recoverable reserves are very high and the correct data should support the best method for recovery and exploration.

Platina Exploration, Division

Platina Exploration Corporation is a wholly owned subsidiary of Platina Energy Group. It was formed to allow its President, Chip Langston to acquire new opportunities into the Company. Presently, through a JV with Buccaneer Energy, Platina has expended over $500k in resources associated with the evaluation and potential acquisition of a producing asset known as AVL. The Company has further provided engineering data supporting debt-financing commitments from Park Cities Bank and CIT for $30 million and $75 million respectively. Each would be a revolving line of credit with certain milestones for additional advancements over the initial $22 million dollar purchase price. The end result would be an immediate net cash flow of over $500k per month. The Company is seeking to close the purchase. This purchase and incremental infra-structure enhancements that would increase production by 20-30% within approximately 90 days.

With the AVL acquisition would come additional drilling sites as well as additional 40,000 acres of developmental property.

Under the umbrella of PEC, there are several other acquisitions currently being evaluated for purchase.

Permian Energy, Division

Permian Energy Corporation is a wholly owned subsidiary that owns representation and distribution rights to certain proprietary and patented technology for oil recovery. This technology called a thermal pulsing device allows for pressure and steam to be forced down-hole thereby reducing paraffin deposits and decreasing viscosity of the oil for better flow rates. In fields where there is primarily oil but with some natural gas, this technology can potentially remove the need for a down-hole pump or pump jack. The Company initially acquired equipment through this subsidiary for additional research and development as well as field deployment. It is believed that the technology will enhance certain fields that can be acquired by Platina that will greatly enhance productivity.

The longer term plan for this technology is to joint venture its proven use with a Company specializing in extraction technologies. Presently, the Company is in discussions with potential partners for use of this device.


The Market

Over the last few months, European research interests that track junior public stocks have resulted in successful additional listings on multiple European Exchanges including Frankfurt. The Company has consequently been very active on the Frankfurt Exchange and has seen considerable price and volume advancement in direct correlation to increases in fundamental values. It has only been in the most recent months that Platina has been able to demonstrate its rash of successful acquisitions of both management talent and core assets.


Recent News and Press Releases

Platina Energy Estimates Initial Production at 10,000 Barrels per/mo for its Young County Lease (Fri, July 20)

Proven Non-Producing Estimated Reserve Report (PV10) Value $62,755,268.00 for Tennessee Lease (Wed, Jul 11)

Permit Approval for Young County Lease (Mon, Jul 9)

Drilling Permits Filed for Young County, Texas (Thu, Jun 28)

Platina Announces Extension of $.50 and $1.00 Rule 144 Warrants (Wed, Jun 27)

Platina Energy Group, Inc. Signs Deal to Acquire New Leases, Substantially Increasing Its Acreage in the Palo Duro Basin (Mon, Jun 18)

Platina Energy Group, Inc. Announces Appointment of New Board Member (Tue, Jun 12)

Platina Energy Group, Inc. Announces New Oil Production for Several Wells (Wed, Jun 6)

Platina Energy Group, Inc. Reports Progress of Its West Texas Acquisition (Fri, May 25)

Platina Energy Group, Inc. Announces Signing of Joint Venture Deal for Young County, TX Prospect (Mon, May 14)

Platina Energy Group to Participate in Joint Venture Drilling Program in TN (Thu, May 3)

Platina Energy Group, Inc. Announces Positive Results for Young County Oil and Gas Lease (Thu, Apr 26)
 


Management

Chip Langston, President of the wholly owned subsidiary, Platina Exploration Corporation

President of the wholly owned subsidiary, Platina Exploration Corporation, brings many years of solid experience to Platina Energy Group including financing skills for joint venture opportunities as well as new acquisitions for the Company. He has considerable public Company experience in the energy sector and looks forward to growing the business using all of his skills. Chip is also a CPA and combines his accounting skills with his profound knowledge of the oil and gas industry.

Steve Eversole, President of Appalachian Energy Corporation

President of Appalachian Energy Corporation has brought with him operating and drilling licenses in Kentucky and Tennessee. He has been very active drilling, coordinating and operating wells in the immediate area to where Platina owns its current lease holdings. Steve has been carefully planning and interfacing with investment groups for the development of the property believed to be worth considerably more than the current market value of the entire Company.

Dan Thornton, Vice President and Secretary of Platina Energy Group

Vice President and Secretary of Platina Energy Group is responsible for much of the day-to-day operations of the Company. Dan has had vast experience with various Companies, including publicly listed Companies and is well suited for this responsibility. He additionally plays a key role in providing computer skill interfaces for technological advancements as well as for book-keeping and legal considerations for the Company.


Contacts

Platina Energy Group Inc

1807 Capital Avenue, Suite 101 I
Cheyenne, Wyoming 82001

Tel: 307-637-3900
Fax: 480-287-9560

Blair J. Merriam CEO-President
management@platinagroup.com

Investor Relations
InvestorReleations@platinagroup.com


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Platina Energy Group Inc. current expectations about its future results, performance, prospects and opportunities. Platina Energy Group Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Platina Energy Group Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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