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Mart Resources Inc MAUXF



OTCPK:MAUXF - Post by User

Comment by CalifDreamingon Jul 01, 2012 10:43pm
505 Views
Post# 20073995

RE: RE: Hope Wade does this

RE: RE: Hope Wade does this

 

? Payout ratio is much higher - closer to 50% at current oil prices.

~12,500 bopd is gross production.  MMT has been seeing ~65% net range during cost recovery over most of the last year (Q1 was high due to lots of activity), so say ~8200 net at current rates.  They might see a boost if AGIP gives them a bit more export capacity, but that can't be counted on - will have to wait for the Shell pipeline to see a significant boost (ie, a double or more in production).  At current prices, they are probably generating $40/bbl earnings, which = ~$120MM annualized. 

Current divvy eats up about $68MM annually. While there is theoretical room to increase the divvy, it seems unlikely until production rises with completion of the new pipeline.  Especially as they hope to pick up some new fields and a fat cash balance would sure be helpful to kickstart some development work.

If I had the choice between a bigger divvy near term and accelerated work on new fields, I'd take the accelerated work every time...

 

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