Stock Tiger Extra - Platina Energy Group Inc. - PLTG August 2, 2007 Platina Energy Group Secures $5,000,000 in Funding   The drilling of the Company's first new Young County well is on target with the Company's forecasts for its 2007 drilling program, whereby initial net revenues to Platina Energy's interest could exceed $750,000 per month. The Company also announced today that preparations for the next Young County well is already under way. The Company is anticipating this well to be drilled, completed, and online also within the next few weeks. Subsequently, the next well permits should be available to allow drilling to continue in rapid succession. July 11, 2007 Proven Non-Producing Estimated Reserve Report (PV10) Value $62,755,268.00 for Tennessee Lease .......an independent estimated reserve report for its P. Hawkins Gas Lease in Tennessee performed by a petroleum engineer and further collaborated by a local geologist. This report indicates over a $60 million net present value based on the industry standard of a ten-year discounted analysis. The company has room to drill about 100 wells on this property as it is and if we were to just figure in half that or 50 wells. The typical well produces an average of $35,000/month as we can also average a pretty good guide of $20, 000 net. That is $20k x 50 = $1M per month or $12 million for a year or at least $0.32 EPS EBITDA. This is only this one property. Clearly with these figures the stock based on forwarded earnings is very under priced. Update July 16 The Company seems to have re-established a base between $.40 and $.50 just like it did in May between $.20-.30.  If it breaks out over the $.50 mark it could likely jump higher like it did in June when it broke out over $.30. This stock appears more like a stair step technically then a trending stock where the moving averages might be more conclusive.   The Company also has proven to have solid news of fundamental growth that warrant further steady appreciation.   By all indications, the Company should be drilling additional wells on their Young Country prospect starting before month end.  Since the average well according to their independent report should come on line between 20-50 bbls per day and they have a 25% net interest carry on the 80% NRI wells, the 35 wells committed for under a joint venture they disclosed by news release should net them over $5mil (35bbl avg x 30days x $70bbl x .80 lease x 25% carry).   The Company further has a $7mil tax loss carry fwd so at a 15 p/e on only this property (this is not the $62mil net present value lease), the stock should have a market cap of $75mil.  (the current market cap is about $10mil) This deal is signed and in progress--according to independent sources, it should take 6-9 months to complete all of this phase. The $62 mil proven reserves is a conservative report done when gas prices were $2 less than now.  According to that published report there are over $200million of recoverable reserves over a 10 year period.  Therefore, if you add the present value of this asset to the 15 p/e calculation from above you can argue a market cap of almost $140 mil.   This does not include the Palo Duro Basin Acreage, the Thermal Pulse Technology or other potential acquisitions. It also does not include one time earnings that could be as much as $10-15 mil for joint venture drilling mark ups.   older report from July 8, 2007   Company home page www.platinaenergygroup.com and its subsidiary Permian Energy International www.permianinternational.com PLTG is a fully reporting company who is current with the SEC and trades on the OTC market in the USA under the symbol PLTG. It is quite active in Germany and trades on the Frankfurt Exchange http://finance.yahoo.com/q?s=O5Y.F The company's website and press releases give standard company statements about them and the one they use on Yahoo says: Platina Energy Group, Inc. focuses on the acquisition of oil and gas leases or properties. The company holds interests primarily in an oil and gas lease that is located in the Palo Duro Basin; and various natural gas leases in the Devonian Black Shale formation located in the Appalachian Basin of east Tennessee. Please read all of the company information, the press releases and the SEC filings to learn all yourself of course but here I will mention briefly the 3 areas I find interesting. First before that - one thing the company has done right away is to have the idea to be diversified so to reduce shareholder risk and to use joint ventures and other cooperative techniques to be able to advance while using much less of the company's money and or stock while they grow. In the following I may use the term "they have" or "on their" in talking about property locations. It may mean lease holdings or ownership directly but this is not important in this brief overview as I use the terms only to identify which property we are talking about. First - they have property in Young County Texas. This prospect is oil and in some cases this had oil wells on it but the price of oil was too low to make it a profitable in the pat so it sat a long time and Platina was able to buy the option on the lease at a very good price. With oil prices now as they are, even fairly low volume wells can produce very good revenues. Platina itself is pumping a couple of very low volume wells as they use this income to pay much of their overhead as this type of well is too small for a joint venture. I liked the fact that the company utilizes all resources in this way. It has a very good  management team and has very low overhead. Before we go further let's give and example of how some private may get into the oil business. You have money in stocks and your home and so forth but would like to be an oil baron so you manage to find a leasehold on a bit of land and you pay a geologist and other experts to tell you where to drill and you contract the drilling company and set up the electricity and make the roads to the well and so forth. You drill and find you are producing 2,000 barrels a month and you are in heaven. Unfortunately however if that were a good risk/reward situation we all would be doing it. In reality you would likely not find oil on the first try or find low production and end up spending so much money you loose instead or making a profit. You can of course drill some more wells but each time it is all you money at risk. Platina has another way of doing this and that is through joint partnerships. Platina already has the leaseholds on property with proven reserves of oil and they have the roads, the resources to do the drilling, pluming, collecting and even selling of the oil and will take on the risk if you are willing to share in the profits. In the Young County property they have areas they call phases and  each one may use a slightly different format but this is basically the set up: The joint venture partner pays Platina a flat fee to drill the well and pump the oil. They guarantee a minimum production based on a ten day run rate after the well is set up and working. If the well they drilled does not produce at least the minimum then Platina drills another one yet the partner pays no additional money. When the well is found and pumping the typical payback period for the joint venture partner is about 4 years at the minimum rate but maybe less than one year on a higher producing wells.  The split of the proceeds are about 75% to the joint partner and 25% to Platina. The joint partner does pay some expenses like electrical and maintenance but this gives you the basic concept. In May Platina signed their first JV agreement for this property with Zone Petroleum LLC and they plan to drill  35 wells. The initial income to Patina for their flat fee is about $75,000 per well net for a total of $3 million for the first 35 wells when completed. The production of each well varies and at the beginning it produces more than years later but even using a reduced longer term average of 200 barrels a month per well the output will be 7,000 barrels a month at present  price of about $65/barrel or total gross revenue of this phase one at $455,000 per month with Patina receiving about 25% of this or $113,000 per month and Platina did not have put up its own money or stock plus it received a nice up front payment. On this property they figure phase one will have have 40 wells and phase two 40 and phase 3 and four a total of about 200 as they will be a bit smaller wells. This is like a win/win situation as if Platin has to drill more than one well to find one to meet the guarantee they have the upfront payment still and also their costs are less that a single individual as they already have the operations ongoing and for the JV partner their is no additional costs. So long term Platina receives is a very significant revenue stream while not having to use its own money. Second -Platina has property in the Appalachian  Basin of Tennessee in the Devonian Black Shale formation and it has natural gas reserves and this is held under the name of Appalachian Energy, a wholly owned subsidiary of Platina. According to filing this property has at least 1,000 acres and a minimum of 60 proven drilling locations though they think it may have room for 100. The CEO of Platina, Mr. Blair Merriam, said that an engineering report produced by C. G. Collins (independent Petroleum Engineer) stated that the production in the P Hawkins Gas Project area comes from Devonian Black Shale. The report further stated that most of the larger gas companies in America grew to their existing levels by producing gas from this formation including companies such as Columbia, Equitable, United States Steel, KY ~ West Virginia, and Wiser. This part of the business may be really quite huge as they are now undergoing reserve reports on the property to determine the amount of reserves in natural gas it may hold. I did a bit of looking on the Internet and came up with some "guesses" as there seems to be an average rate per well in the area. About $35k to $40k per month is my figure. Platina has property there that could hold as many as 100 wells but if I use only 50 wells times $35k we get $1.75 million /month gross. There are of course royalties and leasehold payments and these could take perhaps 40% so 60% of 1.75M would still give Platina a bit over $1m a month or $12M a year so on 37M shares outstanding about $0.32 per share - and this is only from this Tennessee property. Obviously we have to wait to see what the reserve report says but this at least gives us an idea that the stock price has a long way to go as reserves are confirmed, wells are drilled and production begins. Third - for many this is the most exciting part of Platina as it has property leases in the Palo Duro Basin.  This is a natural gas area and it may have huge reserves but the gas is trapped in between shale and in the past there was no good technology for extracting it. You cannot  for example just drop some dynamite down a well hole and blow it up to unlock the natural gas as the whole field could explode. Yikes. There are however new techniques allowing one to reclaim the gas and Platina will be doing it. You can Google "Palo Duro" and you will find amazing excitement about this area. The Paulo Duro Basin is being compared to Barnett Shale according to a Morgan Stanly report and Barnett Shale was the largest natural gas play in Texas. This may be one reason of the great interest in the company but I think numbers one and two above will be the shorter term thrust for the company. There are currently about 37 million outstanding share 15 Million in the float.   Since our original report chart below the stock has moved up nicely on increased volume and the 50-day EMA is now nearing the support at $0.37. The next break out is at $0.51 and the current volume suggest that it will not be too long.   I have no shares at the moment but plan to buy soon as will see how it trades on Monday. It may now be at support but if it happens to dip more I will add at the support and 50-day area or any bounce higher. Platina actually has yet another area of what may become income producing in that they hold the rights to machinery that allows the pumping of oil from fields that have a very high percentage what I will call paraffin.  This builds up over time is certain wells and coats the well pipes like a sludge until the pipes are so clogged that no oil will flow so one needs to go through the very expensive process of removing all pipes and then replacing them. This unit can prevent that from happening. A brief description follows: This thermal pulse unit (TPU), a proprietary technology designed for oil well stimulation and recovery. The TPU creates 350F+ heat and 1,500+psi pressures for utilization in well cleanup, stimulation, and production, using hydraulically-driven compressor technology.                     I am not a broker so cannot give financial advice. This notice is for informational purposes so we included links for you to start your own D&D. Please refer to our Disclaimer on the Website.