New Stratus Energy Inc V.NSE

New Stratus Energy Announces an Operations Update

[Betteryear2]

Calgary, Alberta--(Newsfile Corp. - March 4, 2024) - New Stratus Energy Inc. (TSXV: NSE) ("New Stratus", "NSE" or the "Corporation") is pleased to announce an update from GoldPillar International Fund SPC Ltd. ("Goldpillar"), on activities in the Lido-Limn and Oficina fields, assigned to the joint venture Petrolera Vencupet S.A. ("Vencupet"), of which Goldpillar is a shareholder with a 40% stake (giving NSE a 20% interest). During the first two months of 2024, two reactivations were carried out on the LZ-621 and NG-522 wells, both located in the Lido-Limon field by replacing and connecting the mechanical pumps, currently both wells remain operational. Total accumulated production at Vencupet for January 2024 was 3,589 barrels of medium crude oil (23.4 degree API). In February 2024, the accumulated production was 2,317 barrels of similar oil, with the difference from the prior month being some maintenance that was required on one of the existing production lines that has now been completed. As of March 4, 2024, the aggregate production at Vencupet from the first two reactivated wells is 260 barrels of medium crude oil per day (bopd).

New Stratus Energy Announces an Operations Update from Goldpillar & Corporate Update (newsfilecorp.com)

[stiffupperlip]

I thought this was a pretty good news release but the market saw it differently. Any insights into what is happening?

[Kelvin]

Yeah Stiffupperlip I don't know how the market values companies. NSE has 50% of Gold Pillar who in turn have 40 % working interest in 6 oil fields in Venezuela. One of the six oil fields is Limon which is estimated to have recoverable reserves of 104 million barrels according to the link below. 50% of 40% = 20%. So NSE has reserves of 20% of 104 million barrels at Limon or about 20 million

[stiffupperlip]

Thanks Kelvin - Stiff likes your perspective. I see NSE valued on the cash it puts in the bank rather than access to reserves. They do not have ownership of reserves so this is basically a big 'fee-for-service' type contract in a dubious jurisdiction. Maduro's continuing his rule will be critical. 

[Kelvin]

Stiff, yes an operating agreement type of model. The companies that operate a field get paid on barrels produced. There's very little risk that the recoverable reserves are not there. So they won't be needing to risk money finding reserves. So their operating margins (operating income minus operating expenses) will be determined by their operating cost per barrel and selling price on

[stiffupperlip]

Any speculation on the mexican project? I remember awhile back someone mentioned it was a 2K per day producing asset

[ZCeo01]

Campo Soledad