Novus Energy Inc NOVUF

what's going on..?...really..?

[blue_eagle]

Re: Novus agreement with Yanchang - a steal for the Chinese! ;)

It may not be exciting stuff - but it is the land position and potentially recoverable reserves that are key here. It is a huge low permeabilty and shallow light oil resource - probably one without peer anywhere in the WCSB - and it is a simple well defined updip permeability pinch out situation. The only risks here are those associated with the price of oil and the long term cost of exploitation. In the long view to someone with long term resource needs and understandings - the former will inexorably rise while the latter will (in real terms) decline - and hence the results can only go one way for the new owners

 

Also as jwallisca well understands - the Chinese.want exposure to the technologies involved and what better place to get this than such a shallow, rapidly drilled kind of reservoir! Here in very short order there will be the chance to see muliple wells drilled and completed and very quickly get down to learning and cloning the various bits and pieces that make these things work. We see this here in Albania where the equipment used costs a fraction of what similar stuff used in Western Canada might - and once the Chinese start supplying the steel pipe, the downhole tools, mud motors and drill bits - the wells that are currently being drilled will be getting done in the future for far less. (And hence potential profit margins go up).

 

Great business if you can afford the entry price.