RE: RE: CHEN TRAIN COMING Hi Fernando ! The second rig (is not fact), but an obvious solution on my part due to the upcoming circumstances. During the June 28th AGM and the latest Miami conference Wade said some things that point to a second rig. At the AGM Wade said they had 15 various Marginal fields or divestations, that they had studied in detail and were highly interested in. Because Wade and Midwestern have been in Nigeria for a lengthy period they know which fields are the best low hanging fruit!! Specifically at the very end of the AGM , Wade mentioned that only 6 parties were invited to bid on the huge divestations of ConnocoPhillips by years end and Midwestern our operator on the UMU field was invited, and then Midwestern Asked MMT to be our partner again on this divestment bid.
Of course there is much going on behind the scenes and at the Miami conference Wade specifically mentioned they have already aligned themselves (multiple bids) with various other groups to bid on the Marginal programme coming up (possibly before years end) . So Wade is saying they have already prepared ahead of time for whats coming up.
On each possible deal we could be operator, or service provider, or part owner of an indigneous co. depending on what is best suited to maximize profits and defer taxes.
Now we must consider whats going on at the UMU field , specifically the CRUDE HANDLING AGREEMENT. For midwestern that would open up the purse strings to allow us to drill up the field much faster , since the bottleneck on production would be removed on our oil production. I must assume that behind the scenes if the Crude handling agreement is forwarded and we have a divestment with Connoco phiillips and another deal or two that Wade is already dealing with other possible rigs ahead of time. Seems highly logical that the quickest way to higher cash flows is the UMU field , which springboards the CO into the other deals. Other ACQUISITIONS, could be staled for several months on planning and Engineering as Where to drill i believe, and possibly some of them already have wells that need completions , but no drilling at first... these are all my thoughts..take with grain of salt..but ya gotta believe Wade is checking out available rigs and staff etc in preparation.
MM