mullahpaloozer
DIAMOND DIGGER
Post by mullahpaloozer on 20 hours ago 33 1/3% stake ... 2 ½ barrels of oil per day ... really?
equals .83 barrels per day @ $40 (high side) ... +/- $33 per day ... +/- $990 per month
minus operating costs, lease royalties and maintenance!
less than $12,000 per year return ... which goes to NHE investors.
so even at 50%, a shared portion of proceeds to CMKM Shareholders is less than $6000 per year.
$250 Million +/- invested by 40k - 50k shareholders ...
even with the 'new' math, the numbers will never add up to ROI.
shameful ... IMO
mullahpaloozer
DIAMOND DIGGER
Post by mullahpaloozer on 2 hours agoAnd yet again, there are a few posters from some other boards that disagree with my post addressing the NHE venture into the 'Oil Business.
One frequently vocal member from a board that suffers from severe credibility issues, is quick to point out that the numbers presented by SK are only an estimate and that I need give 'him' more time.
Another from a pro Kirkpatrick board says that I am guilty of not acknowledging there are 3 other phases in this 4 phase project where 'there will be almost 400 wells, which will lead to other ventures ...'.
My post was meant to illustrate a realistic appraisal of possible monetary returns of said investment, but somehow I failed.
Perhaps a more detailed examination is in order.
Even though there will not be 400 wells, I will use that number (374 is the number posted by SK).
And for ease of illustration I will estimate daily production from all wells at 2 1/2 BPD (barrels per day).
And for ease of 'ciphering' I will again use $40 as the PPB (price per barrel).
400 wells x 2 1/2 BPD = 1000 BPD x $40 PPB = $40,000 daily = $14,600,000 annually.
At an estimated $250,000,000 =/- initial investment by shareholders it would take 17.1 + years for FULL ROI.
BUT ... NHE only has a 33.33 % +/- 'ownership' in the 400 +/- wells proposed.
Which equates to $4,424,242 +/- annually.
Of which NHHI/CMKM will be gifted 25% = $1,106,060 +/- annually.
And it will take 226 years +/- for FULL ROI.
It will unfortunately be many generations before the 'original shareholders investment' is returned.
Of course the plan by SK is to take earnings from the Oil Business and reinvest at a undetermined future date, into 'another possibly more lucrative venture' to get NHHI/CMKM back to trading status in an effort to position the Company to be able to give the shareholders an ROI..
GOOD LUCK WITH THAT. NUMBERS DON'T LIE. SO MUCH FOR THE EXPERTS.
PRIDE84 ...
portrush
Administrator
Post by portrush on about an hour agoI think its a good small business model for someone wanting to invest in something over time. Risky, of course. Long term as well. I'm also thinking that your numbers aren't telling the whole story...because any remuneration to NHHI/CMKM would be divided by the number of shares stockholders have certed. Quick math seems to be....somewhere around .0003 per share--if (and that's if) the company gave the 25% back to the shareholders directly. I don't think I've heard him say he would. If he simply divided it among the shareholder count (50,000) then $1,106,060 would amount to $22.12 per person, per year. Hey...its pizza and a 2 litre of Coke.
I'm under the weather today...so my math could be shoddy.
pr
mullahpaloozer
DIAMOND DIGGER
58 minutes ago portrush and carlos like this.
Post by mullahpaloozer on 58 minutes agoTrue that the numbers may not show the whole story ...
but then, neither does that presented by Kirkpatrick which is based upon 'if, then and when' ...
the wells could be 'dry' ...
the verbal agreements could collapse ...
the bottom could fall out and crude could drop to $10 ...
or it could rise back to over $100 ...
proceeds or part of could 'disappear' ...
then again, it could work out for the best and we could all breath in a sigh of relief ...
it's something that none of us has any control over ... it's speculation at it's best..
ROI should be prorated by number of shares held , but the percentage would remain equally for each and all.
It doesn't change the final payout numbers needed to accomplish total ROI or the length of time needed for completion, only that some would receive a substantial amount while others may not be able to afford the afore mentioned 'coke & pizza'.
All in all, it doesn't appear to be a very cheery forecast for the shareholders that hope to see ROI in the very near future or perhaps in their lifetime or that of their children or even their grandchildren.
In any event, I will run as fast I can and happily cash any check I should receive regardless of the amount.
ALL In MY OPINION, as I too bought into this 'thing'
PRIDE84 ...