Norstra Energy Inc (NORX)

[DragonBear]

I'm a bit confused according to the article posted by SNOVF

it says that that the cost is $150,000 to test, case, perforate and drill. Any thoughts?

Taken at face value they will drill a hole past the current 800 ft. Then you have a hole in the ground waiting to be fracked. Which is where the real $4M expense is at for a Bakken oil well. Page 20 in the last 10K, NORX fesses up to a $5M cost. Although their recent 8K cost numbers fall short.

SNOVF does claim they will fund via cash flow from McAfee. The last time I checked their Canadian Sedar filings, SNOVF had no cash flow from their oil leases.

The estimates for oil and gas NORX derived from 1980 seismic studies, and nearby production history. Strange how only a microcap would bid on a lease in this area. It's not as if Bakken property capable of production is unlimited in acres, and all major mid cap Bakken players would pass on bidding for anything promising. Unclear where SNOVF got their estimates from.