peachberry_tea

Three Compelling Chinese Stocks

Excellent analysis - thanks for the writeup.

Had a few questions for you if you don't mind:

NEP:
1. I was wondering how they came up with the 75m barrels of reserves. I understand that they had 3rd party assess their proven reserves but I'm not sure how they got their probable reserves numbers - are those management estimates? Do they have a PV10 for their probably reserves?
2. How did they arrive at that 35% extraction rate? Is that pretty typical for the industry/the type of oilfields they have? I don't know the industry so if you could provide a bit of insight into that

GSI:
1. Could you talk about their liquidity? Their current ratio is looking a bit ugly though you make a really good case for their value.