 |
 | |
 |  |
| 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. |
NuTek Inc. (Stock Symbol: NUTK) could quite possibly be the next big winner of the oil industry. They have developed proprietary technology in the form of a pump that continues toextract oil from wells after the traditional oil rigs become too costly to operate. Traditional oil pumps are effective only when volume of oil exceeds 20 barrels a day. When the production decreases to 5-10 barrels a day, big companies' pumps are uneconomical. This where TuTek's pumps come into play. NuTek is not an exploration company, they simply take over the existingwells. They look for wells that are producing 5 - 10 barrels a day, called "stripper" wells. By installing their inexpensive $3200 Bailer Pumps, NuTek can produce oil for around $2.25 a barrel...THAT'S LOWER THAN OPEC PRICES! When NuTek acquires the lease on a well they also get the existing materials and equipment. The piping from the old rigs can usually be sold for more than the cost of NuTek pump. Hence NuTek can earn profits even before the first barrel is pumped. The bottom line is that NuTek can produce oil from low volume wells at the lowest possible cost. NuTek is always looking to buy wells that big oil companies forego and because they're often the only interested buyer they can get a spectacular price. One company that NuTek has developed a joint venture is Regent Oil and Gas. Regent has agreed to pay for the costs of the pumps and lease acquisitions of up to 5000 new wells in exchange for approximately 60% of the revenue from each joint venture well. This arrangement allows NuTek to forego the hassle of raising capital and diluting stock. For discussion's sake, let's look at some numbers relating to NuTek's potential oil production operations. At 5 barrels a day, and a conservative $19 a barrel, NuTek's revenues will be $34,675 from one well ( 5 barrels x $19 x 365 days). After giving 25% to the land owner and state that number is $26,006. The company can reasonably expect to bring 61% to the bottom line which is $15,863 profit per year per well. Based on the projections provided by the Company when they reach 2000 wells, NuTek's earnings per share could be $2, and the stock price could hit $30 in the long run. It seems amazing, but just consider other oil producers, like Chesapeake Energy (CHK) which went from $3 to $50 in 3 years, or Basic Petroleum (BPILF) which went from 7 3/4 to 26 5/8. Call any stock brokerage firm for more information. Or contact Britt Brooks, NuTek, Inc., 210.769.4146. The symbol is NUTK. | ||||||||||||
|
| Home | Hot | SubjectMarks | PeopleMarks | Keepers | Settings |
| Terms Of Use | Contact Us | Copyright/IP Policy | Privacy Policy | About Us | FAQ | Advertise on SI |
| © 2025 Knight Sac Media. Data provided by Twelve Data, Alpha Vantage, and CityFALCON News |