Someone over at ChitHouse asked what does the NR on reserves mean, and I answered this.....
what does it mean?.....first of all there are mistakes in the numbers....so until we get a correction this is a meaningless document.
But the jist of the numbers show that they gave up:
OIL; 55% of PP, 93%!!!!!?? of PNP, and 54% of PU reserves totaling 67% of their Oil reserves, unrisked.
GAS; 52% of PP, 35% of PNP, and 75%!!!! of PU of their reserves totaling 74% of their Gas Reserves, unrisked.
What should be VERY concerning to ALL HEG shareholders, is that the Proved Producing makes up only 2% of the total proved reserves. Further to that, the company has been left with only 3% of the reserves in the Proved Producing category after the transaction. The total in this category is only 511,700 BOE unrisked. At $9.00/bbl in the ground, this asset equals $4.6 million.....this represents 9 cents per share fully diluted.
So this last number is one you can count on if the reserve report is correct on the PP figures. Not a lot, is it???
The other concerning issue, is that Rush-Andrus Engineering is a small operation run out of a basement. (Which was indicated previously on the threads, by someone living in OK).
This whole picture is ugly! In fact, these figures lead me to say that at todays close the company is OVERVALUED!! |
