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

To: Paul Senior who wrote (38859)	8/18/2010 11:53:26 AM
From: Amark$p	1 Recommendation Respond to of 78652

What I like best about NNN is the long life reserves, i.e. 30 years, in WY. If NNN is right, their WY P&P wells have a payback period of only 9 to 14 months. So the well capex is fully paid back in first year and NNN then has average of 30+ bpd for the next 10+ years per review of their decline chart. If these NNN projections are accurate, then NNN share price is a bargain if you believe price of oil will average over $75 for the next 10 years. But NNN will have to meet its $950K per well capex budget and these wells need to hit their initial production targets of 80-95 bpd. My understanding is NNN will have press release within next 3 weeks to announce the initial production rates on their first 2 to 3 wells and the related capex $ of these wells. The first 2 wells are being fraced this week and possibly the third when its drilling is complete. Thus, we will know soon whether NNN is meeting its projections. And NNN will be completing 2 new WY wells each month per their projections (these are shallow wells that can be completed within 11 days if everything goes perfectly). NNN will be cash flow and EPS positive in the near future if it meets these projections. Place your bets and take your chances at your own risk..., but investors will know one way or the other within 3 weeks.