Mart Resources Inc MAUXF

Pokerchamp Mart is still a good investment

[4fun]

The previous reserve calculation shows MMT with a value of about 68 cents/share, depending on how much you want to value 3P. Umu#6 will dramatically increase the reserve number for Mart to behaps $1.40 / share. We still have Umu#7 and 8 to drill from the same pad. Wells 9 and 10 are planned to be drilled in a different area of the same structure. There are also two other structures on their property similar to the curent structure which have not yet been tested. The current pipeline limits the output of the wells, although we have been told this will increase.

I have also been told that there is another pipline used by Shell about 16 km away. This will require that MMT build there own pipeline to connect to it. I do not know if this is true, or if it is true what capacity would be available. Pipeline capacity issues and when they might be available is a significant risk to future cash flow projections but I am sure this will be solved. Once production reaches 20,000 BOD (10,000 net to Mart) it should generate over $100 million a year in cash flow or 30 cents / share. This should generate a value of  $1 -$1.20.

Solving the pipeline capacity would allow Mart to drill #9 and 10. Number 1 and 5 can be exapanded to produce from other zones but I understand there are production limits on the pipe sized used on these wells so don't really know what the total capacity might be.

No value is given to date on the other two structures. In addition other "marginal fields" will be awarded for development. We expect Mart will get other permits. It has also been speculated that Mart could buy a 49.9% interest in a local company to acquire the lands and then joint venture it with Mart to develop. In this case Mart woul;d earn a 75% economic interest after payout.

In my opinion, there is a very high probability that Mart will reach $1 / share and possibly higher by summer. This is a pretty solid 50% gain from this level to possibly a double. Not likely a five bagger from this price unless Mart acquires new lands with pipeline capacity to increase production.