just on the side about mae, page-10

i just had another good chat with peter

this will interest,,

i asked about the winter, and he said, that the winter will not have any bearing on their plans, getting the gas flowing, i asked then about hydrates, and said, that that issue has been solved, and is not a problem for them,they now know how to progress the flows, without the hydrate probs,,,

the current issue, is simply to get the frac fluids out of the wells, pump them out, as they are considerd contaminates and once that is done, as well as obstructing the flow, when clear, then the well can be put into production. Also said about the economics, that those wells should add significant revenues,,so its not as marginal as some may have been spruiking.

Next, yes, a broker has been telling his clients to sell MAE, on the basis of suspected raising, thinking that any discount would afford them cheaper entry. And comment that that broker may end up feeling some scorn from his clients, as there has been no details of any issue, contray to broker sentiment, there may be value forgone to those sellers,and the word renounceable was poed by peter, and the word free option was poed as well. Not to say that they have decided one way or the other,,but simply peters pov was that as i could see it, the issue would be to the benefit of shareholders, so not just one for the instos, and as he had introduced the word "re-nounceable" into the equation as a possibility, it goes that there is something other than just a discount to renounce, thereby inherent value, ie,(imo) the other poe, "option"

My pov, with any raising, once you add that free option, you actually support the sp.

Asked about the feel of schedule, and he reminded that the previously announced schedule of 3-6m on bringing the wells on line.

But thought that it would probably be a month or so, in regards to clearing the frac fluids out to begin with and we see something on the production flow rates announced.

Also, the IRR has certain risk factors next to it, and in the process of delivering the flow rates, you de-risk, so the discount of risk is reduced.

He said, that would have a greater bearing on our 1p.

Asked about the six parties still interested, and he said, that "six", was never a number announced to the market,,so i re-iterated the question, are the parites who were interested still there, and havent walked away? And his response was to the affirmative, that those that were seriously interested, are still there.

So, i cant put a number on it, and think that talk of 6 is out of place, but just that, those seriously interested, still are.

General comments as well to the nature of the impatient markets, and the process of the sale doesnt happen overnight,,,,

My thoughts,, if this process delivers a higher IRR, and perhaps we are delayed into what comes the other side of the gas price curve??

Hope that helps.

cheers