Bob and ALL,
After sitting back the past two days and thinking about the press release and what it means, I've come to the following conclusions:
I agree with the person who recently posted aptly "we were tossed a bone" with this press release. Not much meat on it, but, one fact did come through- no oil. I don't beleive that this surprised anyone. The release goes on to say that it was a success as it was a "test". I can't dispute the designation of the drilling being a test. Going over the previous releases, NAMX {IMMM at the time}, in its May 15, 1997 release it's stated:
"...oil-and-gas well exploration well in eastern Colorado was spudded on May 5, 1997, and is drilling its TEST of the fluvial formations to the Precambrian granit...With the completion of this first commercial TEST of the EMSOUNDER....."
The June 9th releae also refers to the two wells as "Test well No 1 and Test Well No 2,
The July 3rd release also states, "TEST well geology and reservoir data as being processed and analyzed...."
Now I will be the first to admit that I would have thought a "successful" test would contitute an oil producing well! Such is not the case according to NAMX. Whether the wells were a "succesful" test, or merely a whitewash of dry wells remains to be seen. As Bob S. says "time will tell".
Going off on a tangent here, I received an email from a gentleman by the name of Mr.Moon. He states "I have an extensive background in the oil exploration business..."
Before I go any further, I must point out that I do NOT post emails from anyone, as I consider all correspondence confidential, asked for, or not. However, he gave me permission to quote him and to use his name. If anyone else would like to contact Mr. Moon, email me and I will gladly give you his email address{via email only}.
Anywayz, I'm not oil-exploration savvy to say the least. My forte is in the medical field. I will say, after having conversed (email) with Mr. Moon, he certainly seems to know his way around an oil field. He has brought up a point I think is worth looking into.
Quote:
"From what I hear the wells (three, not two) were drilled through the oil/gas formation, and into the helium strata. Somehow I get the impression that the helium is all UPR's, and Patroclos/NAMX was to receive 40% of the oil/gas revenues. Also, the contract indicates that IMMM (now NAMX) is to provide "lift" equipment (meaning the entire package of hardware for a well) to bring the hydrocarbons to the surface, at which point UPR would be responsible for transporting via lines to the sale point.
If the wells are dry for oil/gas, but the helium is viable, I suppose UPR will handle the hardware for that.
The EMS was used in a well known oil/gas producing field. The chances of hitting a wet hole are obviously better there than a wildcat play. Stamm said he wanted to use the EMS to enhance the potential of locating a well in the best possible position. I'm afraid he missed it, and is now calling this a "test."
Consider this: you spend $200,000 to commission the drilling of a well, and at 5000' the driller asks if you want to stop since you have not hit the predicted show of hydrocarbon. Will you now drill the extra 1000' to the helium (known from other data sources, and drilling), or call it a day, and order a "pull out?" I would go for the potential of a profit, too! Had I encountered a significant oil/gas show, you can bet I would stop at that point, and order hardware for the well immediately.
So, with this line of reasoning, I have convinced myself that there are three disappointing oil/gas wells in SE Colorado, but three respectable helium wells. I would place my last nickle on it that Patroclos/NAMX is not getting a piece of the helium action. I would love to be wrong on this point, however!""
END QUOTE
Does anyone recall (if ever revealed or stated) what NAMX's interest is on a helium find?
My overall take on this event is as follows:
The press release accomplished three things. First, the wells came up dry for oil and that was confirmed. We are also led to beleive that this was anticpated and a normal finding- (remains to be seen).
Secondly, they {NAMX}, have managed to deflect the criticism of its management problems by "tossing us a bone".
And finally, I believe that this release was meant to allay fear for existing share-holders exclusively. It truly is a failed event if its intent was to shore up the stock price. With no other means of attracting "new" shareholders, ie., Web-site, magazine articles, etc., I have to assume that they are trying to pacify us in some manner. The proof (as I see it), will come ONLY if they receive additional funding to continue the drilling program. If they do, in fact, receive additional funding [ and it can be confirmed directly], I will be first in line to pick up a "couple more shares". THIS I would read as a truly POSITIVE release. Until then? I will continue to hope,disect, babble, and talk with my friends here on SI <BG>
Theo |
