Norstra Energy Inc (NORX)

[DragonBear]

Where's the drilling equipment at? When are they going to drill?

Valid questions, but better is: Where's the money to do it with?

NORX claims to have spent $395K. SNOVF in their PR is kicking in $150K. Only problem is the ave cost for a Bakken well is ... $4M. There was a small-mid cap Bakken player who recently bragged about being below $4M in well cost drilling, without specifying how much below. As in they were claiming to be a little better than their competitors. Presumably the $4M may include some fracking line costs.

The point being none of the major Bakken players are reporting they can bring a well online with fracking for $0.55M total. Yet that's the combined number for what NORX+SNOVF has tossed out to the market. NORX since the suspension has been crippled in its ability to sell stock to the market. And selling stock is SNOVF's only source of revenue. Can they raise $4M by selling SNOVF stock into the market? And if they get that far, what happens if the first well is a dry hole, and they need another $4M for the next well?

Guess for $0.55M they could always position some equipment at the site, and drill until the money runs out.