Replies to post #6590 on China Growth Stocks

[P2O I'm from MO]

Looks like they got a few good wells started or increasing production. The number of wells
increased only 18% during the same period the barrels increased 30%.

Regards.

[BiotechValues]

NEP = Blue Chip China small cap

[researcher59]

NEP (5.25) sequential oil production has been relatively flat the past 2 quarters - the year over year growth looks good, but not sequentially -

Q1 - 222091 bbls
Q2 - 225043 bbls
Q3 - 224750 bbls

Q4 should be better due to aggressive drilling activity but the above trend is not encouraging.

Of course EPS will be rising sharply on a sequential basis due to the strong rebound in oil prices.

[2morrowsGains]

NEP...Here is an est on Q3 EPS...

Q2 & Q3 bbls were pretty much flat. Let's say the price of oil averaged $10 more a barrel in Q3.
224,750 bbls x $10 = $2.25M.
$2.25M minus the extra 20% surcharge = $1.8M.
$1.8M minus 34% tax rate = $1.19M in extra profits QoQ which equates into approx $0.06 more in EPS QoQ.
Q3 est EPS = $0.19.

Not sure if my figuring is correct here, but it's just a quick estimate. If the #'s are close to being correct, then NEP's recent share price still looks somewhat attractive here considering today's price of oil and the strong forward looking statements in today's PR...

"We anticipate the total number of expected wells to be drilled in the fourth quarter will exceed the total number of wells drilled through the first three quarters of 2009."