I believe the market is getting impatient for actual production to begin. The wells needing gel treatment have been this way for close to six months, and the company strategy of drilling multiple holes from the same pad has delayed possible revenue.
Marion says their strategy is low risk, but they have yet to prove whether multiple holes drilled very close together reduces the individual flow rates by reducing pressure across the multiple holes.
Analyst predictions (on Marion web site) suggest revenue of between 4 and 5 million by June this year, however that prediction was before the gel problem became apparent.
The company has burnt close to $20m in the past twelve months getting to the number of holes it has, without any production revenue.
From what I have read so far, the conversion of options is substantially less than the 44million that expire tomorrow, which has the effect of reducing the expected $11million cash that Marion definitely need right now (unless they begin to dip into the credit facilities).
Yes, Marion has good potential, and may well be a star, but at present it's light is slightly dim. (Oh yes, in my opinion).
MAE Price at posting:
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