GREY:MGMCF - Post by User
Post by
CommMarine85on Mar 25, 2013 5:00pm
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Post# 21165375
Seeking Alpha
Seeking Alpha Bill Simoes wrote: I don't think the next step is to drill a horizontal well. The next step is to drill a vertical well on the other blocks they own. The nature of land tenure in the North is different than anywhere else in North America. By applying for a Significant Discovery License they can hold the lands in perpetuity provided that they can show with seismic and a production test that the Canol lies under their lands. In the south they have to put down one well every square mile.
By my calculations they have enough money to do this on all of their blocks. The end game for MGM is either a take-out by Shell or a joint venture with a deep pocketed company. Once they have locked up the land, they can wait while Husky, Conoco and Shell prove up the play.
And Bill knows his stuff!