OTCPK:MAUXF - Post by User
Post by
CalifDreamingon Nov 09, 2010 10:41am
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Post# 17679966
Big jump in reserves/production is coming
Big jump in reserves/production is comingI'm more than mystified at the sellers here. MMT just gave news that will boost reserves significantly. Production will follow. To be super critical, the deepest sands weren't as full of pay as hoped, but more than good enough, particularly since the big risk was they would be wet. Plus several other shallower sands are confirmed pay, adding more reserves and eventual production.
If we don't see 4-6K bpd out of this well, I'll be surprised. And it bodes well for the other spuds and recompletions. MMT has a strong shot at getting to 20K bpd gross with all wells drilled and worked over. At current Brent, MMT is seeing ~$90 bbl realized prices. Netbacks have to be in the mid $60s. 10K bpd net to MMT implies $225MM cash flow or about
.70 a share. And nitwits are selling at
.58? That's pricing in wells that significantly underperform, and I don't see that happening.