Larry / Visability
100 wells in Ohio. Now another multi-well program with Jordan Petroleum on Michigan lands. My question is, does anyone know what the average well, in the formations they are drilling into, yields in terms of average daily production. Is there a substantial dropoff in initial production rates. Also, what is the average life of these wells. It's nice to be drilling 150 to 200 wells in a year, especially at this point in the company's developement. A high completion rate doesn't necessarily spell out high success if they don't yield to much in terms of production.
Has anyone talked or received information from the company that would address these questions. I did see a U.S. report about Michigan acreage and it was favorable. Appears major drilling period was back in the 40's and 50's and with new drilling technology, the report summarized that an amount of recoverable reserves was equal to production realized back in that era. I don't know what the company has experienced in Ohio.
The company knows how to promote their wares to the Financial community as evidenced by newsletter and analyst coverage the company has gotten since November. There has been a rash of people commenting that their brokers are hot on the stock. This alone has driven the stock to the $5.00 range.
This is an interesting situation to watch. Initial drilling results will be important. As a former shareholder of Berkley Petroleum, permit me to say that shares in their stock didn't begin to appreciate until drilling results were known in the Red River formation. They had been very successful in their earlier drilling programs and shares held in the $4.00 to $5.00 range thru that same period. Also, people invested in the company's ability to accurately forecast activity and results. Bottom line, one should perform due dilligence based upon the information the company is willing to provide. Do not invest based upon generalities which is for the most part, what has been posted so far about the company from third parties.
An observation. Newstar is a new company and it's natural to question their abilities and operating expertise. However, Jordan Petroleum is a well established Junior Oil with a good reputation. They, entering a joint venture with Newstar, certainly endorses what Newstar has going for them. First thing Monday, I'm calling the company for more information.
If Newstar's situation interests you, permit me to mention another Canadian company with operations just commencing in U.S. The name of the company is Windsor Energy. Comments have been made at the Canadian Oils thread and news at Kerm's Korner.
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Subject 3540
There is a recent news release @ Kerm's Korner regarding joint venture agreement with Jordan which provides some good detail. |
