confirmation, page-17

Good question Paprika, where has MAD's production growth come from in the last 6 months, i.e. since October when the production output averaged 493 bopd.

Bear in mind that in October they were producing 493 bopd, and in February (I'll use Feb because the TRRC website only has company data available up till Feb) it was 893 bopd - an increase in 400 bopd.

Taking a look at the data I see the following:

Firstly, the number of new wells drilled, at least at Blue Ridge dome for which the company provides the most detailed information in its announcements, is as follows:

Secondly, the monthly production breakdown by company lease since October is as follows:

The table above has some discrepancies to the monthly averages reported in the graph in the recent production update, which I take to mean that in the above table the production is net to MAD, while in the announcement it was gross production (I could be wrong on that - after all in the announcement it said "monthly averages as reported to the TRRC").

Anyway, it is quite clear that while the company has drilled 23 wells since the start of Q3 (plus as yet unidentified wells drilled Q1 2013), 8 were plugged and abandoned, and 15 have been put on production.

It is clear from the 2nd table above that the bulk of production comes from the West Schenck B and Gordon leases, followed by Zively as a distant 3rd.

So in the above period, 15 wells have been put into production for an increase of 350 bopd average in the same period. In West Schenck, 6 new active wells have contributed to an increase of 165 bopd in the average monthly rate, while in Gordon, only 2 wells have contributed to an increase of 135 bopd.

So there is no doubt that new wells have contributed to the production increase. For new wells to have contributed solely to the increase, as opposed to any contribution from well workovers, each of the new wells would have had to produce 350 / 15 = 23 bopd through the period to achieve that. I think that unlikely. More likely they are contributing 10-15 bopd based on historical data, and the remainder is from workovers on an unknown number of existing wells.

Cheers, Sharks.