EXPM:MXMSF - Post by User
Post by
Alison11on Dec 13, 2007 10:54pm
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Post# 14018835
Where are we going
Where are we goingSome of this information has been posted here before.
Talked to the boys at MXM. They are producing gas out of their partnership play in the Gulf of Mexico (GOM) at a revenue of about $10K/day to MXM. He did not have flow figures.
Trinadad - Put in for some 47 well drill program. Spent 100K on the Env. Assess. Have a verbal committment from the Trin. gov't that their request will be approved. The gov't has until Jan. 20 to confirm in writing. Hoping to get the ok sooner.
They expect no glitches. (Yah right I have heard that from them before. LOL)
47 well drill program based on their (MXM) geologists identified targets. Once they get approval they will start a 4 hole drill program - from their existing platform (directional drilling). This should be fast and cheap. Then followed by three more wells. They hope to get the other 3 done next year.
They are arranging for additional storage tanks (collection system) and to tie into the existing pipeline. They are hoping for 100 to 200 Bls/day from each well. This could be low as their producing well came in around 700 bls/day from 3 zones. It is currently producing around 125 bls/day from one zone.
They are pumped but we have been burned in the past.
Their Texas play is dead - but no big deal as it was useless anyway.
They also have some land in Nova Scotia. Corridor Resources is currently drilling on one side of them and another company on the other side. If either company hits big it may turn a spotlight on MXM's Nova Scotia holdings. Nova Scotia is a deep play and = expensive. It would mean a partnership and I would not hold out too much in the way of value to MXM's share price over the short to medium term.
My take is that the stock is worth about 8 to 10 cents max per 100Bls/day production. (This might be high and if you think it is too high just adjust the price accordingly.) So if we look at their 125 Bls from their well in Trinidad plus their revenue from gas in the gulf, their current stock price is in the ball park or slightly over valued.
If they drill 7 holes this year in Trinidad plus the one they have = 8 X 100 to 125 bls/day = 800 to 1000 bls/day and give them another 100 bls/day for their GOM gas play = 900 to 1100 bls/day X 8 to 10 cents = $.88 to $1.10/share add a little for pumping and dumping and we could see $1.00 + next year.
Comments Please
Good Luck to All