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Microcap & Penny Stocks : NAMX -- North American Expl.-- Que Sera Sera! -- Ignore unavailable to you. Want to Upgrade?

To: alchemy who wrote (1567)	11/25/1997 10:02:00 PM
From: bob s.	Respond to of 4736

Marty, Probably not huge revenues but every little bit helps. At a purchase price of 2.60/mscf for the gas (current Henry Hub December price) and 208 mscf, less a 12.5% royalty to the land owner, the gross earnings would be $473/day. With cost of drilling and gathering maybe in the vacinity of 1/4 mil., the wells should be paid for in a bit less than two months. This would generate about 1.3 mil. revenues for the remainder of one year if the flow remains constant. All of this is speculative of course. If the company is reporting early in 1998, there will be more specific information from the company. In any event, the ability of NAMX to locate, drill and connect gass reserves is this short time is impressive. NAMX should be generating significant revenues in 1998 if they maintain the current strategy of limited exposure, shallow well development and equity/royalty positions such as UPR. I would like to belive this will move the stock tomorrow but am not counting on it. I think the reporting, listing and revenues will be required prior to substantial moves in the stock. The good news is that this elements may not be too far off.