NXPN - Northern Explorations Ltd

[Jerico]

Another one for the radar.

Norex looks to have found the bottom & is now starting to accumulate.
At .05/share NXPN is is a bargain.

News is starting to pick up so it looks as though NXPN could ride a new wave of PR to some decent profits as the buy-in is so attractive.

Norex is primarily in natural gas with fields in Canada Texas & Cali.
Norex should benefit from the clean energy wave our President is promoting.

Thanks for reading.

[Kronborg]

This is kinda an outsider for my normal taste, but looking into this company, I see great upside and huge potential for a good nice profit,
the share prices are right now extremly low @ $0.04
Just one month ago it was @ $0.125 and 1 and a half month ago it was @ $0.33
anyway what has driven this stock down, I have tried to find some answers but it is pretty hard to justify such a decline. Only thing I stumbled upon was insider selling, that got me scared at first and didn't want to buy in, but then I looked closer and found out that it was the CFO that was selling, and why was he selling?
Well he had resigned from the company and a new one was replacing him.
And the other one selling was a "Beneficial Owner (10%)" Well of course he is a owner and it could be scary.

So lets take Naylor David the CFO he sold around 400K shares, he is properly going on pension and wanted to have some extra money in his pocket, I don't see a red flag in that, he still have a lot of shares in the company.

And for the other MCintosh Robert he sold 340k shares, this is less than I have in this company now so don't take that amount of shares sold as a big red flag.

As I can see it then there has just been a split, so maybe someone wanted to make a little greens on that, who can blame them.

So conclusion on that is NOBOBY from the board is selling and that I take as a good sign.

Then you might ask why is this a good company and a good buy, well they have found a spot for drilling for gas and they will start that within the next 30-45 days so if they get the gas they expect, a good load of money will be coming in.

They have projects going that can turn into a great business.

Rumors about gas prices going up will also help a stock like this,

Obamas clean energy wave, should also bring some attension to this little goldmine.



Now I have started do the rest of the DD and see for yourself.

Kronborg

[DogDayTrader]

Just from first impressions it looks like she might be ready for a turn arround, something I will look into.

btw. You can add charts to your posts. See here ==> http://www.favstocks.com/forum/news-...ts.html#post60

[Kronborg]

Thx

Thats a good feature.

Kronborg

[Kronborg]

Just a small cut from some of my DD on this company.

PowerRating) ("Northern," "Norex" or the "Company") wishes to advise that recent reports in the media as regards natural gas futures indicate potential trends and factors that could lead to significant opportunities within the sector.

A story published by Bloomberg recently identified that some analysts have reported that the fundamental picture is putting a short-term cap on gas at $4 with expectations of an inventory increase of at least 100 billion cubic feet. Several analysts also indicated a need to see real evidence that storage injections are being curtailed in order to see a return in demand that would justify predicting a sustained rally.

These same analysts need look no further than our current national production figures. A key factor that supports the cutback of reserves is the widely stated government reports showing U.S. natural gas production to drop 1.1 percent to 57.93 billion cubic feet a day this year from 2008 production as lower prices prompt drillers to idle rigs. This production estimate is down from an estimate of 57.98 billion in the May Energy Department's monthly Short-Term Energy Outlook.

This reduced exploration will accelerate the decline in output into 2010 with production forecast to fall 2.6 percent next year to 56.42 billion cubic feet a day as the report from the department's Energy Information Administration recently showed.

Furthermore, the number of rigs drilling for natural gas has dropped 56 percent from a peak of 1,606 in September and is at its lowest in more than six years, according to data from Baker Hughes Inc. Companies have cut back on gas exploration and production as the worst recession in five decades reduced demand from factories and power plants.

Norex Energy's Management believes that this combination of reduced exploration and production should inevitably end in a dramatic upswing in prices. The start of this resurgence could well be fueled early as temperatures climb during the summer months leading to increased energy demand, especially in those states such as California that rely heavily on natural gas powered electrical generation systems.

Another key natural element is the ever-present possibility of large storms, tornadoes or hurricanes adding increased demands as we head towards the end of the summer and into early fall. A combination of hot summer months, turbulent fall weather, limited exploration and lowered overall natural gas production could lead to a significant demand increase and resultant price spike within a very short period of time.

Management has predicated its extremely conservative business model on realistic near-term natural gas pricing at well under the currently predicted short term cap. The Company is gratified to see the current gradual increases, but believes strongly that great promise and opportunity for Norex and the sector as a whole is a foreseeable eventuality.


Kronborg

[Kronborg]

Know I am talking to myself here, just wanted to give a heads up
maybe pattern has changed now go check it out.

Kronborg

[Kronborg]

Just a little more DD to the people interrested.

Norex is dedicated to the acquisition, exploration and development of outstanding natural gas opportunities across the United States and Canada.
In Feb 2009, a payment of $376,692 was made for the acquisition of a 50% working interest in two California gas projects in the Central Valley of California.
Norex is now working with the operators towards finalizing the planning of the first 2 gas wells for the 2009 development program. Plans are set to drill the first well in June and the second in July. Another 2 wells are earmarked for development in 2010.
Norex aims to benefit from what would be a very short pay out period for seismic, drilling and pipeline tie-in costs at the two wells targeted in its 2009 California Project.
If proven to be commercially viable, this may represent a venture with an in-situ value of greater than $50 million in contained gas as a majority working interest partner.
The company plans to provide shareholder value through the assembly of asset and property combinations which will include exploratory promise, ongoing production, in-place infrastructure, growth potential and the ability to offer both short term returns as well as significant value over the long term.
Norex Energy’s portfolio is believed to be high quality prospects. Its Californian interests holds potential to bring to commercially viable 2,000-3,000 Mcfd natural gas production that could create a positive cashflow position by end of Q3 2009.
Estimated costs of drilling and completing the 2 wells in its 2009 development project is approximately $2.1 million all in. Pipeline and tie-in infrastructure costs are estimated at $550,000, resulting in a total project cost of $2.65 million in the current financial year.
With PG&E Citygate pricing near $4.96 and given Norex’ 78% NRI to the 100% WI, they expect thus 39% of all revenues to its 50% WI and an ROI of less than 1 year.
Norex wants to enhance its portfolio of energy projects by entering into the wind energy sector by means of strategic acquisitions in Texas & Wyoming wind corridor.
Norex Energy continues target its production through the drilling of new wells and the recompletion of existing Alberta wells. It is also building a professional team capable to design and execute its plans for the aggressive growth of production and revenues. they believe access to adequate financing will enable Norex Energy to leverage its high-quality assets assembled to date, which will ultimately be accretive to shareholder value. When coupled with there medium term outlook for the backdrop for favorable supply-demand dynamics to feed positively into natural gas pricing for producers, and considering the Company‘s initiatives to broaden its participation into more working interests in high potential pays, the shares are classified in a SPECULATIVE BUY rating category. with a 12-month target price at $2.50 (12 PE multiple on the FY2011 EPS of 15c) based on the expectation that Norex Energy can establish a steady pace of adding new reserves and ramp annual production above 12000 Mcfd by FY2011.




Kronborg

[DogDayTrader]

Well here's my take on it.

Pros:

1. Their industry. NXPN might be close to start drilling for NG, if the price of NG rises this year as projected it could be beneficial.

2. Their current position. The stock has just hit their 52wk low, and looks like the descent is leveling off. This just might be the basement.

Cons:

1. Their industry. With all of the hoopla lately about getting away from fossil fuels and migrating toward solar, wind etc. it will be small companies like this one that will tumble first if their is a major shift in the consumption of fossil fuels.

2. Their financials. For the past three years they have not reported any income, but their short term their debt keeps rising along Whit the cost of running their business. I should however note that I have jumped into companies (most recently BIEL) and their financials were not that good at the time either.

3. There has been an increase in insider sales withing the last three months. However considering each officer/ben. owner selling has a total holding of more that 27M shares (average sell of looks to be about 60K shares) they could just be selling to survive, as their business is not making any money.

3. Chart analysis of the last three months tells me that they have been falling, that is obvious and they are currently in a confirmed downtrend with strong bearish signals. However, they might also be finding a bottom, which is always the best time to get in and right not there's plenty of shares available.

Conclusion:
IMO they have everything (unless they find a way to raise more capital) riding on their drill site and if they don't hit it big or can't deliver their product there will be no more NXPN. I encourage everyone to do their own DD and form their own opinion. Furthermore, I will say that I will not be investing in NXPN until I see some confirmed upward momentum.

[waves]

I like DogDayTrader's post. For hot stocks, the concerns on their negative aspects are worth more than the positive speculation. I think this stock may take longer time (till economy goes well and oil/gas price goes up) to jump if they are not so lucky in their two drills.

[Kronborg]

Just a quick one volume was huge today compared to average, 15.25 Mil
and a jump @ 36.11 % could be the buttom was hit @ 0.032 can't say but outlook seems like it.
It was pretty good for a red day at the market.

Kronborg