Current Price: $1.04
Speculative Rating: 2 (second highest level of confidence)
BSIC is an independent oil and gas exploration and production company with primary operations in the Williston Basin, the Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area.
BSIC has grown revenues from $7.2 million in 2007, to $7.5 million in 2008, and $9.1 million in 2009. BSIC has been consistently profitable with net income of $2.5 million in 2007, $1.8 million in 2008, and $3.3 million in 2009 (excluding a non recurring charge in 2009 of $2.7 million).
BSIC's current market cap at $1.04 is only $17.8 million. BSIC has over $5 million in cash, no debt, and positive shareholder equity of $13.3 million.
The Oil & Gas Financial Journal recently ranked BSIC the 14th fastest growing oil and gas producer for the third calendar quarter of 2009 based on percentage growth in shareholder equity.
BSIC's barrels of oil equivalent (BOE) production for the first nine months of fiscal year 2010 increased by 16% from 97,200 to 113,080 and BOE sales for the third quarter of fiscal 2010 were slightly higher at 41,584 compared to 40,300 for the same period in 2009.
In October of 2008, BSIC announced a share buyback program of up to 500,000 shares of its outstanding common stock and through December 31, 2009, BSIC bought back 283,015 shares. BSIC recently increased the share buyback program to up to 1.5 million shares.
BSIC has been in business since 1969 and according to their latest 10-K, BSIC owns working interests in 94 producing oil wells and 36 producing gas wells with estimated proved developed and undeveloped oil and gas reserves of 794,000 BOE.
BSIC hopes to soon list on the AMEX. Shareholders have already authorized a reverse split within a range of not less than one for four and not more than one for 12 to take place no later than December 15, 2010, in order to help obtain an AMEX listing.
