insider trader-stock pick of the week - 06feb, page-42

Everest,

You are mis-reading me. I'm not misunderstanding you. You are completely focus'ed on negatives while not even considering what I'm saying.

NPV is a tool based on value in todays dollars but you are over-simplifying how to run a company. In fact by the way you post I would doubt you have ever been in management or even a supervisor.

I'll start at the end of your post because it's relevant to the rest of my reply. You are still basing all your opinions on the prospectus which was issued in 2010? So YOUR entire basis for your opinion on the stock is based on nothing has changed since 2010?.

For your information, I'd go and do my reading as some of those targets have been drilled and were quite economic in 2011. In fact, half are still going and none are considered abandoned yet (of the initial productive wells).

Now I'll go back to the start - Having expanded there reserves twice since prospectus, gotten a multitude of new seismic data (2d and 3d) and acquired over quadruple the initial acerage on Blue Ridge (prospectus reserve report) do you not think researching the seismic data collected adds value? Thats what they have done last quarter (on all 3 domes but most significantly on Boling), tested how economic this additional oil is.

Why would you concentrate on low hanging fruit (so to speak) if your other fruit is at undetermined heights? they didn't know what it held, so they tested it.

Secondly, so you're saying that knowing the productive oil zones of your field (remember seismic can only tell you where likely oil is, not how much it will flow) and how much they will produce will not help you plan your long term drilling strategy and effectively get a higher success rate of drills?

Thirdly, You went short while everyone else (such as myself) rode it from 26c to over $1. Good for you. Glad to hear it.

-Not to mention broker reports were covering MAD since 36c (motley) so they would still be up. Also they suggested a half sell (sell half holdings) at $1.21. So obviously you didn't read the broker reports.

Fourth, Long term vs Short term is not that hard to comprehend. Short term means you smash into your resource recklessly to get money quickly and then ruin your over-all cashflow for years after, forcing higher costs. Lots of companies to this to appease shareholders and it usually ends up in a worse position than if they planned the operation properly.

Fifth, The relevance of my 'one year into developer' status is simply you are comparing Reserve/production ratio against other companies in a completely different situation. Many of which who have spent hundreds of millions of dollars of loaned money, which has interest, to do it.

Show me which companies R/P you are comparing to and I'll show you how much it cost them to get there (both in time and money).

Things don't happen overnight. They take time and capital. You have given MAD neither. You wanted them to use only their cashflow to expand exponentially production and reserves. Then you chastise them for only achieving high reserves in 2 years without achieving mega BOPD?

If MAD were at 2500 BOPD, would you still have a problem?
10000 bopd? same question.
50000 bopd?

How quickly do you want them to get there? You seem to think its easy. Perhaps you should start a company.

Finally, on your uneconomic RRC wells, you are clearly not all there mate. The wells drilled into Het-lime are on the Blue-ridge, Boling and Nash lease, under production wells. Go read the quarterly and crossmatch the names. They are on the flanks (outer edge) of the fairway. Still in the production lease marked out by the RRC. They were exploratory in nature of position, but not in lease and were not reported as such.

Read the quarterly report please.

P.s. I don't care about likes either. I'm only responding because you might have a point I haven't considered. Unfortunately not yet... probably because you're still referring to the 2 year old prospectus like nothings changed.