Mart Resources Inc MAUXF

RE: RE: We Don't Need A Second Rig

[oullins]

Moly, glad you brought up the pads.  Pads will take at least a couple of months each to build plus a month to cure. In my view they are more important than a second rig at this point.  A rig cost about $3M to $4M a month with the crew.  There is no way the partners will agree to a new rig right now.  I think they need the cash ahead of another event. No need to draw a picture on that one.  The pads are not very expensive compare to a new rig and it would be worth giving the partners 6 months to pay for it.  The sooner we get going on the pads the better I will feel.

They are still deciding if they go East or West.  I understand that West is the favorite due to access roads already in place.

My vote would be to do the horizontal next while they are building the pads but I am not on site and I do not have all the data so I will go with what management decides.  I think that's why we have a management team and so far they have delivered.  Not always on time but so what as long as they do deliver.

 

By the way under the contract, expenses are payable the month after they are booked not 90 days.  The 90 days was a way to get the partners to agree on UMU10 and it applies only to that well.

 

Cheers