Mart Resources Inc MAUXF

Second Request

[fattail]

So I went to Sedar and in the May 2006 M D & A, I found the following on the Umusadege field agreement with Midwestern & Sun Trust:

Mart will receive its share of production on a sliding scale, beginning with an accelerated repayment of costs contributed to the project and moving on a stepped down schedule based upon aggregate production volume.

So I assume that this is what TD Ameritrade article was referring to. So back to my First Request:

I'm a newbie to Mart but seriously looking to get in!

Could someone explain this reduction to 50% working interest and what that will do to cashflow and when?

And a second question: Has no one on this board ever received a dividend before?

[mjh9413]

I do not believe anyone can tell you when the 50% will be reached as the following statement from the most recent MD&A indicates MMT is maintaining a volatile recovery rate: 'During the cost recovery phase, Mart is entitled to a maximum of 82.5% of the production revenues from the Umusadege field after the deduction of royalties, taxes, Niger Delta Development Commission ("NDDC

[JustforFun7]

I think the short answer to first question is that the working interest will be reduced to 50% when  Mart  stops developing the Umusage  field for  the two partners.  Given that there are many wells to be drilled yet, it will be years before their working interest  is reduced to 50%.  The caveat is that the partners need to approve the drilling so if they  

[fattail]

Thanks to both mjh9413 & JustforFun7. That is such an interesting little wrinkle! So I guess you have to look at the deal from the partners' perspectives. I guess they would look at the 32.5% differential as an offset against putting up the capex. The annual meetings to set year's drilling program would be interesting. My understanding is also that Mart has made a deal with

[mjh9413]

I'm writing just for fun as I think the comment about 'receiving dividends before' was sardonic...so many so ignorant of how they work and the terms used. Now we have people asking about the 5cent div when the company announcement clearly stated the qtly payments of 5cents and the start date were simply being announced as intention and no dates were provided in that release.  It