Nimin Energy Corp. (TSX: NNN; $2.25; Buy; $3.00 PT) NiMin Energy reports year-end reserves.
NiMin Energy reported year-end 2010 reserves of 17.3 Mmboe (13.8 Mmboe net after royalty) with a net PV-10 of $311MM. Both figures represented a 45% increase year over year and reflect a successful downspacing program at the company's field in the Big Horn Basin of Wyoming and proof-of-concept at its secondary recovery operation, known as Combined Miscible Drive (CMD), in California. NiMin also announced a 2011 CAPEX program of $25MM which calls for as many as 20 new wells in Wyoming, facility upgrades and a half dozen or more polymer treatments. In California, the company will look to add infrastructure to procure its own oxygen for injection and drill additional vertical and horizontal wells. NiMin continues to represent a deep value play on oil as investors are currently paying $12.50 per proved BOE in the ground. We are therefore reiterating our Buy rating while raising our price target from $2.50 to $3.00 per share based upon our revised Discounted Net Asset Value of $3.62 per share. [Global Hunter Securities]
And so we are told this is the golden age
And gold is the reason for the wars we wage U2
