GREY:MGMCF - Post by User
Post by
NobodyKnowsOneon Jan 21, 2011 5:17pm
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Post# 18009783
RE: Kogas deal read it carefully
RE: Kogas deal read it carefully
From the Dec. 15, 2010 news release:
" The sale price will be paid $20 million on closing and $10 million upon the decision to construct the Mackenzie Valley Pipeline or any other project to commercialize production from SDL 131."
I believe the Koreans are proposing an alternative way to get the gas out of the Mackensie Valley. And I think it's a good idea. It makes a lot of sense to me to avoid the expense and huge environmental disruption on the land, and simply build an LNG facility offshore for field collection and distribution by ship.
As far as the price paid by the Koreans; I don't know for sure, but the forward sale of 20% of a field resource which still carries the risk of never becoming commercially viable is a good one. MGM gets $20M now, and most likely will be proving up more nat gas and possibly oil resources in the future.
The company is doing what it can to survive.
Nice uptick at mid-day. Close @ .23 is excellent. I think there may be news coming shortly about the pipeline or the rig permit or both.
GL & Cheers