Silvermere Energy - Encouraging production level achieved during flow test on I-1 well on Mustang Island

Silvermere Energy Encouraging production level achieved during flow test on I-1 well on Mustang Island Mustang Island has 3 more existing identified wells and the encouraging production levels achieved at I-1 well in the 24 hour flow test could be the precursor to successful; production from this well which could significantly upgrade the Company's reserves and resources. Silvermere is seeking to expand its US oil production interests with the board looking to grow by acquiring further projects in the US which either in or close to production. Looking at just the 2P reserves in the updated draft Competent Persons Report that the company has disclosed and the fully diluted shares suggest 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) Dividend (p) 0.00 0.00 0.00 0.00 Source: GECR and Company. Notes: ¹ - 12 months to 31 May 2010; ² - 7 months to 31 December 2010 Speculative Buy Target price 22p Key data Price 10.6325p 52 week high/low 22.50p / 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: Silvermere is a corporate client of Bishopsgate Communications, which is a subsidiary of GECR's parent company Rivington Street Holdings Important: All disclaimer information can be found on the last page of the document

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