MAGP has proven leadership and a Pipeline (sic) of wells queued up on the runway with increasing Net Interests. We are due some big results before the year end. Funding is not an issue. Not a placing in sight. Directors are results driven and paid by same . We are profitable and Wells coming on line consistency outpace any decline rates by some margin.. Our studiously acquired landbank has inreased in value. In fact some of it was recently sold off for 3x original price. This is unlikely to catch fire overnight but by the same token will not colapse either. SP has declined however from 5p (ish) to todays current SP probably due to some extent to early hype. Now , however I believe it should be a case of a steady climb ( in AIM terms) back to a decent and reasonable SP . Of course the Oil price is important , but our net cost per barrel is exceptionally low and whne everyone in th epress talks about depressed prices and it is common knowledge I suggest that it is time to look the other way . Out of the thosands of companies on AIM, this has to be one of the safer one's right now , with great potential. Rita (RFW) is all about bulding up and selling on DYOR. Night night , have to work tomorrow....Zzzzz
Goeie aand, menere en mevroue. Like others, I have gone well beyond original stakeholder limits set. There are many more side issues to examine before plunging into further MAGP commitment. None of them can be regarded as a stroll in the park. The industry is very complex. We are fortunate to have two captains who know the oil business inside out.
I have previously made a brief reference to division orders and forced pooling. They influence the many lease interests the company already holds, and will shortly increase. The video link gives a clear idea on the latter. (Don't close the link when reaching the end as a series of windows appears on related subject matter.)
SOS, I believe, mentioned 200 producing wells as an objective. It might be an interim step only. Toklan Oil & Gas, a private company, has 580 producing wells. They function, apparently, along similar lines. They have also gone the same route with mortgage arrangements, presumably to secure working capital. After being caught out on the wrong end of the 2008 banking crisis, their present status seems to be on an even keel.
Commerce Bank, Stillwater(?), has undertaken a number of mortgage arrangements similar to the one with MAGP. It is now noted that the recent collateral is not the first as a similar step was taken in 2013. As far as I can make out the eleven lease parcels mortgaged at that time have now been made good. They are notarised as "REL", which is interpreted as released/relinquished, with MAGP denoted as grantee.
We don't have much to go on insofar as available cash for reinvestment is concerned. Well participations for 2014, amounting to somewhere near $4m, is fair going . . . particularly if the bulk of it has come via receipts.
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