insider trader-stock pick of the week - 06feb, page-11

Ptolemic,

Just to make sure you are willing to stand by your analysis. Can I call the company who did the reserve basis and send them your post so they know their mistake?

Also, do you have a source for that chart? I'd love to see the data if you have a chance.

I think you are hoping to scare anyone on the forum with what seems to be a well reasoned post.

Pure oil reserves, seeing as you DON'T UNDERSTAND something perhaps you should ask, means all oil and no gas. As opposed to most fields this day which are a combination, measured in BOE rather than Bo.

If you read the report, they give reasons which you over-looked to make your arguement sound stronger.

1. Het lime formations were tested to see if these would produce oil as an avenue of INCREASING RESERVES. unfortunately only 1 out of 5 of these wells into het-lime formation was viable.

Could be seen as a waste of money but I see it as good management exploring options.

2. and i quote: "a higher than anticipated number of Blue Ridge Dome wells
were plugged during the period, as they did not meet Maverick’s rate of return thresholds.
The trend of plugging a higher number of wells has not continued in January.
Maverick has also been testing outer limits of the fairway in anticipation of beginning full
scale mid fairway development in the Joint Development project. Evaluation of the upper
and lower limits of the fairway was planned as an endeavour several months before and has
resulted in enhancing the boundaries in some areas of the field and defining the fringe
boundaries in other parts of the field. This is considered a normal part of the delineation
process"

and
"Many wells drilled in the September 2012 and December 2012 quarters encountered Het
limestone with cored oil shows. Significant time and effort was put into completing these
wells without sustaining commercially productive flow rates. We have currently put these
efforts on hold to concentrate on our sand formations which have always been our primary
focus. Knowing there is oil in place, but being difficult to establish a sustained commercial
production method, we intend to revisit this formation at some point in the future. The time
taken in this program has had significant negative impact on our current production"

Perhaps you should READ THE REPORT before putting your amateur evaluations on it.

Finally, despite this they still increased production average.. whilst not as much as I'd like, the JV has finally happened and they have said they will be going back to their initial sand formation wells.

Production should be boosted this quarter significantly.

I don't own shares so not ramping, just offering a view that some people get their rocks off sounding smart with long posts that they hope no one actually looks in to.

and less than 5% reserves recoverable would mean that the 1P reserve analysis was not only underestimated by the company doing the reserves but it borders on fraud.