OTCPK:MAUXF - Post by User
Comment by
Bobwinson Jul 03, 2012 11:51am
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Post# 20077374
RE: RE: Expert Commentary from another board
RE: RE: Expert Commentary from another board I would disagree with your statement. Mart gets 50% of the field production plus cost recovery of their drilling expenses. So for Q1, they got a very high 82% of the field production instead of 50% because of recent drilling activity.
BUT it's not increased "cashflow". Looking at the big picture, they SPENT the money first and the JV is returning it to them later. That's not increased cashflow for the same production. That's 50% plus getting my money back that I already spent in the previous few months. It's neutral.
Obviously there are other reasons for Mart to keep drilling. They want to get credit for their higher reserves in these new zones they are exploring. The reserve reviews take time AND production so Mart is getting the data sooner rather than later to expedite this process and to be ready for the second pipeline.