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Marauder Ressources East Coast (MES.V): An Overrated Penny Stock?

Investing in a penny stock is a bad ideas most of the time, they are very risky and are pretty easily manipulated. It seems however that one can come across interesting companies trading on the TSX Venture Exchange. Going through some screenings recently, I came across this company with some impressive valuations. Marauder Resources East Coast principal business is the exploration for and the (potential future...) production of petroleum and natural gas reserves off the east coast of Canada (for now) and elsewhere.

What is interesting to notice at first is that a lot of popular sites like Google finance do not provide a lot of information about the financials of the company. Looking deeper on the website of SEDAR for their most recent quarterly earnings report, dated September 30th 2010. The company seems under valued. Here are some summary financial information about the company. All amount are in thousands of dollars.
Balance Sheet for the year ended 2009

Evolution of Liabilities and Equity over the last five years
Income Statement for the year ended 2009
Cashflow statements for the year ended 2009

Currently, the company does not sell any of the resources that are on their fields. If they manage to find a way to exploit those fields of if a company comes to acquire a part of their assets, This would be greatly valuable for shareholders of the company.
One good example is the sale of it's interests, in July 2009 of certain zones in Production License 2901, Offshore Nova-Scotia, to Encana Corporation, operator of the Deep Panuke Natural Gas field. Marauder Resources East coast received 3.5 Million CAD in the transaction, plus an overriding royalty on the future production from two currently non-producing exploration licenses offshore of Greenland.
 As the company will not have enough cash to finance it's own exploration of the area and that their principal sources of cash is the issuance of debt or equity. The first option has not been used yet, and probably will not be used since the company doest not generate enough cashflows from it's continuing operations to justify a loan from any right minded bank or investor.
Their main assets are currently their petroleum and natural gas properties, with an aggregate value of a little over 32 million CAD. With liabilities mainly composed of a differed
It seems that investors have been very discouraged with this company. To the point that they have left the company for dead. As it can be seen from the company's balance sheet. Equity stands at 27 million CAD. With the 63 millions shares currently trading, that makes for a book value per share of 0.39$ and the stock is trading at 0.07$ that makes for over a possible 450% return for investors willing to be patient enough for a favorable event to happen to the company. At current prices, the company can't issue many shares for fear of massively diluting current shareholders.
Another interesting fact is that insiders of the company have been exercising options over the last couple of months to acquire about 4.4 million shares in the company when the company's stock was trading at around 0.05$ per share. This might be good news for the stock.

This is a very risky position but the reward might justify the risk. Keep in mind however that investing in penny stocks is extremely risky.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I am currently long MES.V (or any code you could use to descript Marauder Resources East coast Inc.)