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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (38850)	8/17/2010 12:15:48 PM
From: E_K_S	Respond to of 78650

Re: NIMIN ENERGY (NEYYF.PK) NiMin Energy Corp. (TSX: NNN, OTCQX: NEYYF) - Signs term sheet for long-term debt; Success on the very first well at Wyoming researchfrc.com Research Report on NIMIN ENERGY (NEYYF.PK) dated April 2010.

To: Paul Senior who wrote (38850)	8/17/2010 3:27:29 PM
From: Dan Meleney	Read Replies (2) \| Respond to of 78650

Nimin Energy: I see I'll need to learn quite a bit to understand this business/industry. Yes, great ratio of reserves to market cap, but negative earnings and cashflow, lots of new stock and debt, short corporate history. Not my forte, but I'll start learning more so I can evaluate e&p more appropriately.

To: Paul Senior who wrote (38850)	8/17/2010 10:23:18 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78650

NimIn.TO - what makes me a bit suspicious about the NPV calculations is that they value probable reserves almost the same way than probable. For example in the Cooperate summary, they value the 11.9M BOE at 215M$ (18.1$/BOE) and the 27.9M$ proved+ probable reserves as 476M$ (17.1$/BOE). So i wonder if they include the Capex that is surely needed to develop probable reserves into proved ones. Last time I checked, oil does not bubble out of the ground when you put a stick in the ground <g>. niminenergy.com Just for a comparison, TOT is valued at 12.5$/ BOE proved reserves and about 1/2 that for proved plus probable. Both are as different as companies can be, of course, so it is not a valid comparison. Even though this sort of tells me that if I apply the same logic that E&P apply to value their reserve base, TOT would be worth 80$/share, which i would gladly take.