MIRA RESOURCES CORP. MANAGEMENT DISCUSSION AND ANALYSIS NINE MONTHS ENDED SEPTEMBER 30, 2013
The oil and gas exploitation industry is intensely competitive in all its phases and the Company competes with many companies possessing greater financial resources and technical facilities. The Company competes with many companies possessing greater financial resources and technical abilities than itself for the acquisition of oil and gas reserves, claims, leases, other oil and gas interests, and equipment required to conduct its activities as well as for the recruitment and retention of qualified employees.
• In addition, there is no assurance that even if proven reserves of oil and gas are discovered, a ready market will exist for their sale. Factors beyond the control of the Company may affect the marketability of any oil and gas discovered. These factors include market fluctuations, the proximity and capacity of natural resource markets and processing equipment, international economic and political trends, expectations of inflation, currency exchange fluctuations (specifically, the U.S. dollar relative to other currencies), interest rates and global or regional consumption patterns, speculative activities, government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of oil and gas and environmental protection. The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in the Company not receiving an adequate return on invested capital or losing its invested capital.
• Substantial expenditures are required to establish probable or proven oil and gas reserves through drilling. Estimates of oil and gas reserves and oil and gas resources can also be affected by environmental factors, unforeseen technical difficulties and unusual or unexpected geological formations. In addition, the grade of oil and gas ultimately extracted may differ from that indicated by the reserve reports. Material changes in oil and gas reserves, grades, or recovery rates may affect the economic viability of any project.
**** Seems like they are preparing for there exit.
IMO An exit plan was in place before the News release advising they were going to focus their energy on bringing the well online.