Silvermere Energy - Encouraging early performance from the I-1 well at Mustang Island

Silvermere Energy Encouraging early performance from the I-1 well at Mustang Island First production from the I-1 well started in late-August which marks a crucial milestone in the development of the company. Early production has been encouraging with indications that condensate production may be higher than expected. This is just the beginning of the story at Mustang Island with future development work on other existing prospects within this same licence area which has the potential to significantly upgrade the Company's reserves and valuation. Silvermere is seeking to grow by acquiring further at or near production, secondary and tertiary oil and natural gas opportunities onshore and shallow offshore the US that have the promise of early cash flow and Currently evaluating possible acquisition of an producing oil asset in New Mexico. 2P reserves at Mustang Island alone allows us to determine a target price of 22p. Click to Download Full Report Table: Financial overview Year to 31st Dec. 2010A1 2010A2 2011A 2012E Revenue (£000) 229 0 0 120 PBT (£000) 716 (153) (1,371) (1,000) EPS (p) (96) (16.9) (13.7) (2.7) Discount (p) 0.00 0.00 0.00 0.00 Notes: ¹ - 12 months to 31 May 2010; ² - 7 months to 31 December 2010 Speculative Buy Target price 22p Key data Price 10.75p 52 week high/low 26.00p / 8.63p Primary exchange AIM EPIC SLME Shares in issue 29.2 m Market Cap £3.1m Sector Oil & Gas Valuation NAV / Share 11.43 p TNAV / Share 11.43 p Affiliations: None Important: All disclaimer information can be found on the last page of the document

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