Mart Resources Inc MAUXF

RE: reserves

[CalifDreaming]

Mart has ~9MM bbls proven, 12MM proven and probable and another 6.5MM possible.  These are net, so the entire field is twice the size.   2P NPV10 after tax is $380MM or $1.10 share, which is usually a key valuation target.  Currently trading at obscenely cheap multiples - about 1x annualized cash flow (vs 4-6x for typical international juniors) and about 0.75x '12 cashflow assuming fairly conservative numbers.  In other words, MMT will generate more cash flow in 2012 than the company is currently valued at - the market is letting you buy $1 cf for
.75 when it typically demands $4-$6.
.
Upcoming step-out drilling at U9/U10 could have sizable impact on reserves and production/cashflow.  The wells are technically exploration, but seem (to me) highly likely to be connected to the main field. The first well (U9) should be at TD by year's end barring unforseen problems.  
.
I think Mart is a table pounder.  Pipeline negotiations should be resolved in the near future.  Couple with imminent results from U8 (likely another well that tests >10K bpd), and Mart could be producing ~15K gross (7.5K bpd net) in a matter of weeks.  And if U9/10 are successful, could potentially add another 6K bpd gross by end of Q1 2012.
.
Mart has realistic chance to be producing in excess of 20K bpd gross (10K net) by Q2.  If so, they will be throwing off close to $215MM annualized cf, or
.64 sh.  Slap on a dirt cheap 3x multiple and MMT has potential to be a $2 stock.
.
As such, MMT is a table pounder at.current prices - even better value today than it was at
.10 in early '10 as risk-reward is significantly more favorable now they have successfully drilled 3 wells that pay out in a month or two due to excellent netbacks from high value light sweet production.