Mart Resources Inc MAUXF

Cash flow per barrel (Q3)

[Darilon]

With cash flow of 15.7 million based on net production of approx. 573000 barrels for the 9 month period, MMT is getting just over $27/barrel in cash flow.  This seems somewhat low to me.  A big part of this seems to me to be the income taxes provision:

"The provision of $16,597,331 as at September 30 2010 payable
on 2010 oil production. The provision provides for the maximum PPT rate of 65.75%, although it is
anticipated that final PPT rate will be between 50% (the prevailing rate applying to indigenous companies)
and 65.75%. The PPT is based on oil receipts less royalties and community development costs,
production costs, general and administration costs related to production, capital allowances and
investment tax credit. It is anticipated that payment of PPT will be made by May 31, 2011."

Wow.  That's one big tax.  With any luck, offset by rapidly increasing production over the next 6 months or so.