RE:RE:Do people realize the opportunity here?
my experience in such deals (and I have been in them) is the vast majority of the proposals are from tiny outfits, that want to exchange their paper for yours. You can't fault them for trying. But the bank likely wanted cash, and this was the best option for this. My numbers that I am working on, are focused on the production profile in the corporate presentation of Maha, that show production rising from 1600 barrels of heavy oil to 6200 boe/d. The document on file, is backward looking, whereas the presentation is forward looking. One is fact, one is a forecast. This has various points to look at, especially the 45m of free cash flow in the next 18 months. So I am looking forward, and we see on page 50 the results of the field activities they said they would complete, and they HAVE. They are going to be a very busy company in the next 16 months too. Here are the relevant parts of the activities they have been doing ..... from page 50 ........Palliser has also entered into two (2) farmout arrangements with Maha with a view to generating production in the near term from several priority prospects of Palliser. In the first instance, Palliser on behalf of Maha, will recomplete and equip four (4) wells targeting the GP formation on its Marwayne, Alberta prospect in the Lloydminster core area (the "Marwayne Farmout") for Maha to earn an undivided 30% working interest in associated spacing units and wellbores. Maha will pay 100% of the recompletion costs and Palliser will provide certain requisite surface equipment. Under a second farmout arrangement in its Manitou, Saskatchewan core area (the "Manitou Farmout"), Palliser on behalf of Maha, will drill, case and complete or abandon a Sparky test well. Maha will be responsible for 100% of the costs under the Manitou Farmout to earn a 70% interest before payout, reducing to a 50% interest after payout. The recompletion well program under the Marwayne Farmout was completed and in production in early September 2014, and the test well under the Manitou Farmout was drilled, completed and on production in early September, 2014..