GREY:MGMCF - Post by User
Comment by
PorkChopExpress74on Jan 13, 2013 4:25pm
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Post# 20831946
RE: RE: Shell
RE: RE: Shell MGM initiated Shells withdrawal on the second well option. MGM announced that they withdrew their application for permits on the second well. They did this purposefully because the farm out agreement with Shell called for timely permits or they would drop out.
Perhaps someone at MGM asked themselves this: Why do we need Shell's investment for an additional 37.5 percent when we have already completed the first well? Conveniently enough, MGM triggers Shell's back out by withdrawing timely applications on the second well and then immediatley launches an offering to raise money even though they had enough to cover basic operating expenses to take them through 2013.
This tells me that they are more than happy to move on the second well on their own with out Shells assistance.
I saw this as a huge positive. My truck is loaded. Good Luck to All.