ORLANDO, Fla., Dec. 17, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies Inc., announced that it has initiated research coverage on PetroSouth Energy Corp. (OTCBB:PSEG), an emerging oil and gas exploration and production company with non-operating working interest in highly-prospective leases in Colombia, South America.
The company has one producing well and another one being tested; therefore, they will report revenue in the next quarter. In addition, the company has an engineering report verifying reserves and near-term revenue. PetroSouth's management includes highly-experienced executives with oil and gas experience and access to attractive deals, as evidenced by the current portfolio of prospects. They have raised $6 million to date to fund initial operations and have a solid track record in all aspects of the oil and gas business in Colombia-a country with many opportunities for new exploration.
RedChip Research Analyst Clay Mahaffey, CFA, wrote in the report:
"Although speculative, PSEG has an attractive upside/downside return profile suitable for risk-oriented investors. Their net potential reserves are over 40 million barrels of oil, and if only 25% of these are proved by successful drilling, it could result in price appreciation of over 100% from the current stock price. The reserve estimates are based on independent engineering reports. A 12-month price target of $3.00 is based on conservative estimates of drilling success."
To receive a complimentary copy of the RedChip Visibility Initial Research Report for PSEG, please visit:
http://www.redchip.com/visibility/about.asp?page=vreport&reportid=80&from=12172007news
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Disclosures
The analysts contributing to this report do not hold any shares of PSEG. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in the report are subject to change. PSEG is a client of RedChip Visibility, a division of RedChip Companies. PSEG paid RedChip Visibility $26,500 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility has been contracted by PSEG to increase investor awareness of PSEG to the small-cap equity community. These services may include investor conferences and digital and print distribution of PSEG investor related materials.