Ann: December 2012 Quarterly Report , page-52

Neilie
I did not give reasons for my opinion today because I have expressed the same one for 7 months and I got sick of repeating it.

So one more time.

There is mo evidence that MAD can increase production in a profitable way and for a company with a market cap of 300M production needs to be upwards of 2000 BOPD.

Based on performance I dont see any way they can get their unless they have major sucess on high impact.

Small wells are now a lost cause. They are just not profitable.

I dont expect Gulf to come up with a lot more funds. Tax benefits or not the Gulf investors are going to lose big time.

If these small wells were so good MAD would be drilling the crap out of them on their own and would not even be contemplating high impact.

High impact only exists because they know small wells are no good.

Their are lots of comments on here about production improving.

Of cource it is getting higher. If you drill enough holes production will increase. But if their is no profit all you end up with is lots of holes.

In June 2011 mad was producing 688 BOPD fron 20 wells.
18 months later they say dec month was 735.

Over that time they have drilled between 60 and 70 new wells and production is up 47 BOPD.

So they have spent 15M on drilling alone for basically nothing.

80M shares came out of escrow today. I would be very concerned about that.