Geoff,
This is the latest info I have received from Nutek. I talked to the CFO, Britt Brooks, about 2 weeks ago. The nuber of wells that they hold seems to be a bit nebulous, but I am pretty sure this is what he told me that: Nutek owns 110 and 90 wells through the joint venture and independant acquistions respectively (or I may have them reversed). - but anyways about a total of 200.
Yes, at that time he said they had 14 pumps installed. The story I was given is the outsourcing company that was producing these pumps, Penquin, had developed a digital controllor "ahead of schedule". And they were holding back on production of pumps, to insure that these controllers were not going to have any major problems in the field. I assume this involved some sort of testing. I do not have my notes from the conversation handy, but I believe Brooks also mentioned 17 pumps that were produced and were waiting to be outfitted with the digital controllers.
I am also under the understanding that the wells that are not yet outfitted with the Bailer Pump can be adequately serviced by the company's existing swabbing trucks and manpower. Since Nutek is getting the expected production out of these wells, there does not seem to be a crushing sense of urgency. When and IF the acquisitions get to a point where the existing "swabbing" capacity cannot service the wells, I hope that they have the pumps there.
I would really like to see the production of the pumps speed up along with the acquistion of wells. Unfortunately, with the oil prices way up after last week, I imagine that potential sellers will be less willing to part with their oil fields/wells. But I believe everything happens in cycles, and oil prices will come down. Hopefully Nutek will still be in business and be ready to capitalize when it does.
Looking back now, this one will take a little while longer to pan out than I was originally lead to believe.
I believe the info that I have given here is accurate, I hope it is useful to you.
Rick Meyer |
