isn't it peaceful?, page-28

I predicted the cash balance would fall by $9mln in an earlier post, not just as a result of drilling equipment but also G&A and drilling dry "High Potential" wells.

The statement about Gulf South being pleased by progress and it beating their expectations is somewhat meaningless as we have no idea what their expectations were. They have not come out and said they are endorsing the proved reserves that is an extrapolation that has been made on Hot Copper.

Odd that Maverick feel the need to sink so much money into buying equipment when they are operating in the most competitive and deep oil field service markets on the planet - a model that has largely but not completely been abandoned in the oil industry. They must feel that their wells are such that they will need to do a lot of workover operations to justify such equipment! If that is the case you would expect them to first invest in wells, get cash flow up then buy the equipment. They could potentially even work themselves into a position where they could borrow against their wells to buy the equipment rather than inevitably coming back to shareholders......this would all work perfectly - if the reserves are there.

Further - if the reserves are there - they are taking an inexplicably long time to build their production levels (basically gone nowhere in the last 18months), look at other onshore USA players with proved reserves such as AUT and AZZ, it hasn't taken them so long to materially increase their production - but then I believe their reserves.

Another thing I find odd - they declare themselves a production company which in my view as an investor means a lower level of quarterly disclosure. Yet they are still burning through cash and based on the hopes of a number of posters on this forum the results of the exploration wells are material to the share price....smells more like an exploration company to me.

Short