No, not "cheap" on cash flow - at the moment. But remember, Umu 6 is expected to bring on 3-6K bpd - it's only a 9000' spud, so without a screw up, should be online by year end into existing CPF that is capable of handling 10K bpd at the moment (and designed to be upgraded to 25K bpd with relatively minor capex). That effectively doubles (or nearly triples if high side is met) current production. Then 2-3 months to drill/complete the two follow on spuds (drilled from the same pad).
Add in 2 work overs to dual complete existing wells - are expected to bring each well up around 3K bpd = 6K gross.
IF things work out (and in the past, that hasn't happened too often), they could conceivably add 9-18K bpd from the three new wells and with the two work overs produce ~6K bpd btw the two = 15-23K bpd gross (with MMT getting 50% after payback). That could legitimately happen by mid '11. Compare with current gross production of ~3800.
Look at MMT's webcast presentation and check their cash flow projections - if they indeed get close to ~20K gross, little MMT turns into a cash flow machine. Since these wells are step out development wells drilling into stacked pay, of which only a few sands have been produced, odds for success seem good.
The decline rate from their wells has been astonishingly good. After two years of production they saw pressures rising sufficient enough to open the chokes. To me, that indicates the reservoir is a lot bigger than current mapping shows and/or recoveries are going up. Either way, pretty encouraging news.
With MMT finally changing out the old guard (new management, new BOD members), MMT is finally acting something other than a half azzed junior that it has been in the past. If they have drilling success, their fortunes will change dramatically. That's why the frog to the princess comment...