Mart Resources Inc MAUXF

Might be a dumb question but..

[hangemhigh4]

Does Mart have any oil Hedged? Seems many do at higher prices. Would like to know from an informed investor. Thanks.

[radcat]

I have owned Mart for 8 years and I have never known them to hedge. I raised this issue years ago and always thought it is foolish of them to not take advantage of higher prices via a hedge program. You'd think management  would consider hedging when Goldman Sacks issues a research report stating oil will drop to $70 bucks when it was then trading in the mid - 90's. Especially when

[hangemhigh4]

Thanks for answering. Yea I im surprized they haven't hedged either. They must have their reasons. Thing is, look at SGY. They say they are hedged at $90 and still there share price falls so I don't know how much it would help at this point. Think Wade is counting on this being a short term thing. We will see. I held now for 3 years. Picked up some more yesterday. imo

[righand2]

Mart cannot hedge, as they are not the operator of Umusadege. The question is, why didn't Midwestern/Suntrust hedge? Probably because they are Nigerian, and don't seem to know squat about the business.

[radcat]

"Mart cannot hedge, as they are not the operator of Umusadege".  I beg to differ.... Mart could purchase oil futures puts in the options market equal to their share of production to protect themselves against a selloff in crude prices. Partners do not have to partake, or better said, Mart doesn't require our partners permission to hedge using the futures market. Regardless, its

[righand2]

Maybe if Mart had a dependable production history, they could write puts. But when production could be shut down completely at any time, the expense of puts would just put added pressure on the balance sheet.

[freedom-1970]

This sliding scale pay makes our cash flow change like a yo-yo! No question our cash flow with all the drilling and increased production with HOPEFULLY VERY LOW LINE LOSES we can still keep our cash flow steady or even higher adding some revenue from our Ownership pipeline percentage..

[righand2]

Only if Umugini is flowing. Since they didn't give us an update on its status, it is almost guaranteed it is indeed shut down as previously reported.