RE: RE: RE: RE: why is MGX down today? basically shareholders are waiting for drilling results that will be happening in a few shoprt months and depending on those results we could see a minimum 25% increase in our SP and I'm guessing even as high as 50%, so we could go from 0.22 to 0.33 over night. if they can fit in the second well in 2013 also, and if that well is successful we could also be in for another 25% gain or getting closer to 0.40 even though not a single barrel will flow for at least a couple of years.
basically, we are waiting to first find out if the canol shale oil is under MGM's land and secondly how big it is from an areal perspective and thirdly if the oil can flow economically.
I think they know they have canol shale oil under some of their land package, and they know where it is, so the success of the first well is almost gauaranteed and the second well will determine if it's under more of their land and if that's true then we are sitting on potentially huge reserves, assume of course that the oil can flow in economic numbers, which I think they also now since Husky has invested huge to buy the land and so far they are keeping very quiet on the core samples.
yes investing in MGM is risky but the reward is huge and we always have the NG reserves to fall back on in 5-10 years once all of that shale or the really good shale is produced.
I'm buying more if I can get it at a good price, yestreday was a gift for the buyers, lucky dogs.
DYODD