NAMX -- North American Expl.-- Que Sera Sera! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : NAMX -- North American Expl.-- Que Sera Sera!

NAMX 0.0001000

0.0%

Mar 7 3:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: M. M. Jones who wrote (1598)	11/29/1997 2:01:00 PM
From: alchemy	Read Replies (3) of 4736

Hello Mitch: I wonder if you could clarify this statement:"My information is that this is a previously-drilled site and this fact is likely to be negative for its productivity potential." As far as I know, there has not been any drilling on this site before. The site is located within 6 to 8 miles of the Denver-Julesberg Basin where there has been a lot of successful drilling by Amoco and HS Resources. This is also an exclusive lease. <<Don't forget that we have been told repeatedly that new drilling would be financed by "off-balance-sheet financing," meaning limited partnerships from which NAMX will get only a portion of the profits -- 60% if they are lucky. (We have been told this in order to allay our concerns about massive stock dilution.)>> I am assuming that we are operating with all 100mm authorized shares as issued shares. I am doing this to take the worse case scenario in assessing this stock. Until we get an official tally of outstanding shares from the company, we should use the largest possible amount. As has been stated earlier, NAMX funded the original wells from petty cash. I have learned from Paul that they have just signed the agreement with KNE for the next six wells. Three of these wells will begin drilling on Monday. Paul also confirmed that starting Dec. 1, the gas from the first three wells will be flowing through a KNE meter. All NAE shareholders please rise and breathe a collective sigh of relief. Finally, we have income. We are in business!!! My admittedly primitive spreadsheet estimates that we will generate the following from the three wells: No. 1: $3120.00 per day No. 2: $1352,00 per day No. 3: $540.80 That would give us $150,384.00 in income for December. The gross revenues of the three wells over the next 12 months should surpass $1.7mm if their flow rates remain constant. As the other six wells come on line, they will be immediately tapped in for additional revenue. Now consider that we may potentially drill somewhere between 23 and possibly as many as 40 more wells in this field and start adding up the figures. I don't forsee NAE having any problems financing anything at this point and I would speculate that there is no need for "off balance sheet" financing from the North American Drilling fund at this time. The North American Drilling Fund was to be used for the 50 well UPR exploration campaign. I have had a phone conversation with a lurker who commented that my estimate for drilling in a field like this was way off. My drilling cost per well was $300K. I have been told that when a field is charted, and when the reservoirs are shallow, the subsequent drilling cost can come down to as low as $50K a well. Can anyone confirm this? marty

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next