NAGP: New Year update. Production plans for 2013 outlined.
By Ian Gilson, CFA
On January 3, 2013 Native American Energy Group (OTC Markets:NAGP) published a letter its stockholders and others outlining its accomplishments in 2012 and its current plans for oil production in the first part of 2013. The successful implementation of these plans will require additional financing. Most of the news had been reported by Zacks as they occurred. Some oil was produced in the 4Q12.
Both the Wright 5-35 and Beery 2-24 wells are expected to be in production in the first quarter of 2013. Further work on Beery 2-24 and workovers of Beery 22-24, Cox 7-1 and Sandvick 1-11 should be completed by mid year 2013 (subject to financing) and with all five wells in production by mid 2013 the company expects sustaining oil production in the range of 300-400 barrels per day.
Our production estimates for the third quarter is 370 barrels/day, a selling price of $75 a bbl for an estimated revenue of $2.4 million. The company sells its oil to Shell US Trading at a discount to published prices.
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