Mart Resources Inc MAUXF

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

[molymoney]

Oullins i guess i was hoping they were already working on these pads and the road to the East target LOL. On the rig rental , was thinking that we don't have to pay up front and only after 90 days and by then Midwestern had paid MMT more forward oil money.

I guess it seems Midwestern doesn't have deep pockets or access to money to fast track the project. Depends on that Crude Handling Agreement and just how much oil they allow initially in the line, but if its a large BOD count , the faster you fill it the better, as your cash flow gets bumped as well as possible better line losses on bunkering.Midwestern paying about $36 million forward on the second rig would pay back in a hurry if they added an extra 15000 bod in the line when its in service. It would be nice to have that buffer of a second rig , as things can go wrong with rig down time, set-up time etc. Anyway its in their hands , but it sure would be more exciting with two rigs, especially if that capacity to deliver is available in 3rd quarter (late) in the new pipeline. Hoping now the testng goes well on UMU 10 and the Crude handling Agreement. Very happy with this investment and the divy !! Should be exciting the next 18 months as the big leg up iN cash flow is yet to happen if all goes as planned.

 

MM