Back in town The return from Europe and Africa was a bit difficult. Not only I caught a flu bug on the plane back from London but I was welcomed home with all my stocks down, the price of gold crashing and oil down big time. Not to forget some very sad domestic events..
I hope everybody breathes better today. Our life line is back almost at the rumored 15th of April date.
Next things to look forward to:
For all the people that fear Q4 and Q1 do not forget that we will get a large part of the nominated oil due to the very high cost of UMU10. The point is that it will not be good but not as bad as some predict and we will still have cashflow so the dividend is safe. Forgetting for a second about new pipeline and production increase, how much a company producing 7,000 BOPD at a very low cost is worth?
Now for the new pipeline
A few things to remember: When you hear rumors is that Oando does not own a share of the new pipeline directly, they own part of Energy and that company is a partner on the pipeline with SunTrust, MidWestern and Mart (15%). So, they are not part of the team and may not have all the visibility. The increase cost on the pipeline is not a large impact on Mart. They have to pay 15% of a pipeline financed at 70 to 80%. Nothing to write home about. All of the issues are paperwork between different government agencies. The pipeline will be built and oil will flow this year, period. Well all IMO of course.
Long term nothing has changed with Mart. We have a great field ready to triple production and a lot of other opportunities to increase the size of the company. What do you think the $100M is for? Do you think the bank gave Mart $100M because Wade had a nice smile? and BTW I think they can get more if needed. I will draw your attention to one presentation Wade gave. His point about Nigeria was that it requires patience and if you run out of it just find more patience. The rewards are worth it.
Speaking of presentations the company will present at the oil council in Hong Kong in 2 weeks and again in mid June at the same place for a resource conference by Charter Bank .
The next 2 weeks will have a couple of interesting events one is the year end report and the second is the reserve report. Jury is out if we will have UMU10 fully included but if not an amendment can be issued in May or June just like last year.
Then in June get ready for our annual lunch in Calgary just before the AGM
Sleep well, Mart is a very good story, it will continue to improve and someone will win the $3.00 contest this year. Just don't forget it's Nigeria so if you have no patience I can recommend US treasury bond. 0.2% return to cover 2% inflation, great investment :-). For me I will keep my 20c a year dividend.
CheersPS. I started posting about PTQ on the PTQ Board
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