Dave & All,
Spoke to the president of Nu Sky, Les Hofmeister p.eng, at length today (cost me a small fortune). He faxed me info on his latest project in the Brazeau Nisku Pool. Briefly, I will re-type a paragraph taken from a technical analysis prepared by Nickle's Petroleum Explorer (Feb/97 issue).
"Total remaining recoverable reserves in the pool are approx: 52mmbbls of NGL's (mainly condensate), 2.9 million tonnes Sulfur, and 300 bcf dry gas. The unit currently produces 8000 to 12,500 bopd of NGL's for gross revenues of $5-$8.5 million PER MONTH. A successful well drilled in Section 15 (which NUS has a 25% WI in) would be credited with 5 to 12% of these reservesafter joining the unit,depending on thickness of gas encountered. In a competitive drainage scenario, a producing well in section 15 similar to the adjacent wells would generate gross revenues over $2 million PER MONTH (of which 25% would be NUS's).The economics of drilling a well, the quick payout, and the quick connect to existing facilities are very attractive."
SHARES ISSUED.
At present and including the recent restricted Flow Through financings.
Fully diluted: 10,191,532
+ Warrants: 11,242,282
Total free trading, approx: 7.4 million
of which Insiders own 22% or 1.63 million.
CASH FLOW PREDICTIONS: are based on fully diluted shares, including warrants and successful completion of this years projects are equal to $0.473 per share at this present time.
Drilling to commence in June on the Brazeau Nisku property. It is estimated that the completion of this well will increase NUS's monthly production to 850 barrels.
Further info to follow (my time is running out).
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