MAY 6.06% 3.1¢ melbana energy limited

AP We Need a 2nd Drill Rig for Block 9 ASAP, page-7

  1. 2,289 Posts.
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    Hi Benny,
    What worries me is if Zapato fails to live up to expectations and there is a chance that it may happen we will then see another sell off in the SP, however if we are producing it will bring stability and support to the SP. Then what happens if we again encounter problems with the redrilling of Alameda, as many posters have said in the past, expect the unexpected in Oil and Gas. MAY had previously scheduled a production well straight after Zapato from Amistad, however that is now been delayed.
    IMO the sooner we get production happening the sooner we will see SP stability and fair valuation of the SP, its an insurance policy on the share price and it will also ensures we don't to go back to shareholders for money and diluting its value by issuing more shares.
    As an example of fast tracking on-shore oil discovery into production is CUE Energy and its consortium which made the Mahato oil discovery (90 million barrels) in the Indonesia in April 2020, started Commercial oil production in late 2020, by June 2021 had 5 producing wells, by March 2022 was producing from 9 wells and now planning another 4 producing wells in the coming months.May in the last Webinar and in previous presentations have said they can start production in a few months time after a discovery, by trucking the oil to the nearby refineries.
    Last edited by The Mechanic: 08/05/22
 
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