Press Releases

First Berlin Initiates Coverage On MCW Energy Group With A “Buy” Recommendation And A Price Target Of €1.10

December 12^th, 2011:  Shediac, N.B., Canada/Frankfurt, Germany:  MCW Energy Group, a Canadian holding company involved in oil production/distribution and oil sands recovery technology today announced that First Berlin Equity Research has completed a comprehensive research report on the Company with a “Buy” recommendation. MCW Energy Group shares trade on the Frankfurt stock exchange open market.

First Berlin’s research report recommends MCW Energy Group shares as a “Buy” with a speculative risk rating.  The target price implies investor returns of up to 83%.  First Berlin’s report goes on to state, “Provided that continuous production can be achieved, we believe MCW Energy’s oil sands extraction business has the potential to achieve gross and EBITDA margins of 57% and 32% respectively.  Sourcing oil inhouse would also allow the fuel distribution business, MCW Fuels, to widen its margins. Our DCF valuation model suggests a valuation of €1.10 for the stock.  A successful start to oil (sands) production in Utah in early 2012 should quickly see the shares reach our price target.”

The First Berlin report further states, “The assessment of  MCW Oil Sands Recovery LLC’s technology carried out by the well known Canadian petroleum engineering consultant, Chapman Engineering, suggests that MCW has made great progress in addressing the challenges represented by the extraction of oil from Utah’s oil-wet sands. On our forecasts, which are an extrapolation of MCW’s own three year business plan, but also incorporate a second 10 hour per day production unit from 2014, the lease reserves (50+ million bbl – U.S. DOE) should be sufficient to support production by the Company until 2017/18.” 

MCW Energy Group expects that the linking of its oil production with its fuel distribution network will provide advantaged pricing, higher profit margins and enhanced returns to its investors. “The price level of €1.10 for MCW Energy Group’s shares is adequate in our opinion. This has now been confirmed by the report of First Berlin’s research analysts. Overall, we currently see the shares as being significantly undervalued.” stated Dr. R. Gerald Bailey, new Chief Executive Officer MCW.

First Berlin’s Research Report on MCW Energy Group is available in English HERE

First Berlin Equity Research

First Berlin Equity Research is a highly respected, Berlin-based research firm which provides the institutional investment community with independent equity research on over 40 companies  First Berlin’s primary focus is on small and micro-cap companies with low visibility and high earnings potential listed on the German stock exchanges or in the pre-IPO stage.  First Berlin receives no compensation from subject companies.

About the MCW Energy Group:

MCW Energy Group is a Canadian holding company with two principal portfolio companies:  the California-based MCW Fuels, established in 1938, a leading distributor of branded and unbranded gasoline and diesel products throughout the United States, and MCW Oil Sands Recovery, LLC, an oil sands extraction technology company based in Utah, which is focusing on providing a new source of domestic oil from America’s virtually untapped oil sands resources.  With an ongoing production of oil from its oil sands leases, the Company intends on becoming a profitable supplier of oil to several regional refineries. This new revenue stream will provide strategic leverage for MCW through direct control of oil pricing and supply within its core distribution network.