At current gas prices MAEs fields will be uneconomical to develop.....
Questar ....“we believe that the Pinedale Anticline is the only major play in the Rockies that’s economic at current prices”......and this was before the latest crash in gas prices....
MAE got the fields cheap as the easy gas had been produced and gas prices at the time did not make the fields an attractive proposition to develop....well guess what, gas prices are back down where they started...the easy money is gone and only skill will make the fields profitable...MAE has proven it has none of the talent required....
I suspect MAE will be doing well if they can sell the propertys for enough to cover the debt and get a small return for shareholders.....it looks like the days of hoping to see dollars per share have well and truly gone...a while ago MAE set out to sell one of its other assets...As yet it has not managed and times have only got tougher...
companys making preliminary enquiries does not mean they intend to pay good money for the assets of a distressed seller..
MAE must sell as they will not make enough money to keep the company as a going concern.....I sugest there is a good chance they will sell or go belly up well before june, as the cash wont last that long Good luck...you will need it!!!
MAE Price at posting:
32.0¢ Sentiment: Sell Disclosure: Not Held
