Interesting conversation. Said cash flowing ~$4MM a month. Expect to get payables in hand by end of Q1. Are current on debt and will retire it all by year end. Said will see repay of capex at end of Q1if oil prices stay at these levels and WI will drop until they start drilling again. Halpin was cautiously upbeat.
Said are self funding at current prices and production. Just need to get balance sheet in order before restarting drilling.
Said production is steady and CPF working reliably (little downtime). Said Wade will give update at the AGM and they expect to give NR later in the Q with firm news of restarting drilling (expected in early Q2).
Said 7 locations at Umu to target. Each hopefully ~2000 bpd gross type wells. Hope to drill ~4 wells this year. Said $4-$6MM cost per well and two months to complete. Will target more of the bypassed sands.
Said unlikely to replace David Parker as new country manager handling things.
CPF has 10K bpd capacity, so unlikely any big capex for facilties needed.
Looking at the June 1 interim reserve update, Umusedege has ~12MM bbls 2P and carries US$212MM after tax 2P NPV10 valuation (US
.60 share fd) with conservative forecast oil prices ($55 in 2009, $60 in 2010, $65 in 2011 $75 in 2012 and continuing to $105 in 2024.). This year reserves prices will move up so perhaps $250MM NPV - a far cry from current $60MM EV and $40-$50MM cash flow.
I think MMT has big potential at current prices and everyone should consider adding while they can - valuation cannot remain below the
.14 buyout valuation that was "fair value" when there was $35 oil, Mart only had half the production, was cash flow negative and the world looked like it would implode last year.