Mad's real oil reserves nust be close to zero. While they have oil in the ground it is basically all uneconomic and you cant count uneconomic oil as reserves.
And when the write-down their reserves their will be a corresponding massive write off of oil and gas assets. Should be at least 50M write-off.
MAD have 76M of oil and gas assets on the books and have been writing them off based on the number of barrels of oil they have in reserves.
Last half they wrote off 1.7M on a base of 76M so what they are saying is that their existing wells will continue to produce at the same rate for the next 22 years.
Even the Galah siting in the cage in the corner knows thats not true.
If the next quarterly does show a drop in BOPD then that will just confirm that the company is grossly overvalued even at 28 cents.
FDM Price at posting:
27.5¢ Sentiment: None Disclosure: Not Held
