We have found oil and irrespective of what happens in Fiesta we could drill 6 to 8 commercial wells in Barnhart next year and increase production.
"Currently, aggregate productive capacity estimates from all of Molopo’s producing wells (which includes Texas and Saskatchewan) ranges between approximately 1,100 barrels of oil equivalent per day (boe/d) to 1,300 boe/d, split approximately 75% to light crude oil and liquids, and 25% to natural gas. Of this production, Molopo’s two Barnhart wells are materially contributing to the estimated volumes, with further production additions expected once the wells in Fiesta finish completion, flow back and clean up."
As for the cash, if someone wanted to buy us out then it is relevant. Year end cash is about $75 million, so current assets and production of about 1500 boe/d are being valued at $35 million.
MPO Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
