OTCPK:MAUXF - Post by User
Comment by
stockpeekeron Mar 12, 2012 2:33pm
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Post# 19658427
Interesting Comments by Crucible
Interesting Comments by Crucible Interesting commentary from "crucible" at IV Mart boad. In particular his thoughts about Mart's exit strategy :
By the way, Billy, go pea up a rope and celebrate freedom of speech! O:-)
| Msg 2903 of 2904 at 3/11/2012 2:36:03 PM | | |
Re: MART in the Big Apple - I'm going!
Gulo's right. They could add second rig (or even a third), but until the p/l is complete, not enough export capacity to handle all the oil. While it might make sense to do that anyway since MMT gets such high cost recovery (making capex almost "free"), the JV partners aren't interested as their near term cash flow is reduced.
What I'd like to see is MMT get all their ducks in a row - get all the pads built, get any community agreements in place (if they aren't already), get field production facilities up to snuff in prep for a large production ramp next near. With three rigs, they could add ~9K bopd per quarter. After a year, they could have the Shell p/l full...
The market isn't valuing MMT on current production/financial metrics, so spending cash to buy additional properties is counterproductive from a shareholder's point of view. Since the best opportunities (ie Marginal Fields) are restricted to indigenous players, MMT wouldn't get best deals anyway. Mention of a divvy is what brought a lot of new money into MMT. They have to follow thru to maintain credibility. I think upcoming news on taxes is a precursor to some sort of divvy announcement.
I don't think MMT (in its current form) will be around long enough to bother looking for other plays. I think they already have an exit strategy in mind. With dual export capability, Umusadege should be attractive for strategic reasons beyond being a very profitable oil field. The logical buyers are the indigenous JV partners who will be in a great position to bid on new Marginal Fields.