Mart Resources Inc MAUXF

RE:RE:RE:Post Umugini financial performance

[mjh9413]

The easiest way to define the benefit of more oil flowing (and less lost oil) to the export terminals is to say, okay, 8,000 boepd cost $28MM in the qtr and since the increase to 16,000 has only marginal increase on costs (mainly because real average daily prodn capability is already 12,000 boepd and MMT is ready to open flows from exisiting wells), that cost is spread amongst twice the level of prodn, so cost per barrel  is reduced (if, to make it simple, total costs were to stay at $28MM the per boe cost is halved.)  Trouble is Brent-based prices today are continuing to decline, about 40% from last qtr;s USD108 average!!!! 
Brent RSI indicates a consideable oversold but unfortunately if it does not reverse soon it may just enter a new era of relative price stability. Yuk!!!