bad start to sp today, page-5

Maybe some don't quite understand the nature of the different types of plays in O&G, and all they see is the low # of bopd per well and don't get the well cost, the very high netback for MAD, the NPV/IRR that distinguishes this investment.

Personally I would not mind if MAD took a little time consolidating at the $1.25 mark.

I think the market generally buys the story:

(a) Bopd now around 1,000 destined to triple by possibly year end. At flowing $150K, suggest MC of around $450M

(b) on present 2P reserves of 72.8 Mmbo, destined to possibly double to 150Mmbo shortly and using $30 which is reasonable given location of reserves thats also about MC of about $450M.


Seems like the MAD train is on track to achieve those steps and more. Adjust the multiplers to your liking but those are fairly common numbers.

Regards