Mart Resources Inc MAUXF

Merger

[grandpama4]

After a merger Mart would be controlled by Midwestern who would have control of electing the board and therefore control management , dividend policy, future drilling budgets etc. Could result in major changes. It is my understanding that the company being allocated fields must be controled by an indigenous company such as Midwestern. Please clarify how merger could be accomplished without losing control to Midwestern.

[Bart2]

I concur with Grandpama4. Would like to hear how a merger would help us. Mart is doing very well now as it stands and dont see how a merger would be of benefit.Would like to hear other opinions tho.

[hangemhigh4]

This question I asked Bobby. He says it will benefit Mart to merge. Ask him for more info as he seems to be more knowledged on this. imo

[themangokid]

I dont know how likely a merger is.  Although that would be an interesting discussion in and of itself.  However, regarding a theoretical merger.  I think a merger would jump the share price as we would actually own the land and no longer just be the drilling operators.  As remote or as not remote as the possibility is, isn't part of the "risk" in mart the fact

[grandpama4]

I don't know even with a merger if you own the land. I thought  Midwestern had the licence to explore and develop the field but do not own the land. They possibly lease the land but I think the land is owned by Nigeria so the risks remain if Nigeria wanted to nationalize all oil lands and the operating fields( not likely as has never been done in Nigeria). Again I think Western has

[mjh9413]

Where did this idea of a merger originate? The Marginal Field Program started as a carve-out of multinational oil companies holdings to indigineous Nigerian companies so that they could gain employment for  Nigerians and get capital and technology and know-how from foreign oil companies and, at the same time, increase output from the marginal fields in line with the government's overall

[Greenchips]

Companies never own the land or sub surface rights. OML stands for Oil Mining License, PSC stands for Production Sharing Contract, pretty much self explanatory. Indigenous companies (like OER) receive preferential treatment in terms of accessing marginal fields and also enjoy lower tax rates in some circumstances.