Mart Resources Inc MAUXF

RE:RE:RE:RE:RE:RE:No Incentive

[righand2]

goinonaprayer wrote: Novice here and can't understand why there is no value in OML 18? Did they not say the oil is hedged at $95 for the next three years? I understand this cash flow cannot be utilized in UMU so does little to help MART but is there not value for another company with long term growth aspirations.

There is value in OML 18, but a sale in this market climate would never bring as much as Mart paid for their share. And the money they put in for capex would most likely be lost in a deal in a country as crooked as Nigeria. So Mart would be left with more debt than they started with, a debt that would have to be financed by Umusadege at $50 oil. Not a good situation.