Hi Jim,
We have been waiting for this Gruy report because their estimates should be trustworthy. This confirms the companies earlier estimate of around 55 BCF and is great news. Also the 45 new wells this year is very aggressive growth. Revenues will increase dramatically. Of course a lot of that will go into drilling programs in Nebraska and elsewhere. The estimate of reserves does not include the D Sands.
<<Proven and probable Niobrara Chalk Formation natural gas reserves were estimated by H.J. Gruy
& Associates, the company's independent reservoir engineers, at 60.97BCF of natural gas.
On Jan. 27, 1998, NAMX was granted 40-acre well spacing on the Niobrara Chalk Formation
and plans to drill 45 additional wells on the structure in 1998.
The value of the reserves from the Niobrara Chalk Formation was estimated at $140,840,070,
using the Wall Street Journal, March NTMEX price of $2.31 per MMBTU.>>
Estimate of Net Tangible Assets based on 62 million shares issued which IMO is a reliable figure for now.
$140,840,070 / 62,000,000 = $2.27 per share value at this time. Royalties would have to be deducted from that and other expenses which we don't know yet. Very promising!
Have a good one,
Bob |
