Ann: Interim report for the half-year ended 31 De, page-18

re: Ann: Interim report for the half-year end... Pcaruso

To value MAD I would break it into 4 categories

1.Cash
2. Existing wells in Production
3. Drilling rigs
4. Oil in the ground

So
1.Cash is 35M
2.Oil wells in production 20M(very optomistic)
3.dilling rigs - no idea
4. Oil in the ground - This is the highly contentious area. MAD say they have 100M 1P reserves as per Jun 2012 announcement. This is complete rubbish. And more to the point they struggle to make any cash from these reserves.
My view is their worth very little and most will disagree with me.

All up I would say 70 to 80M and I think this is pretty generous. And the longer they continue to drill the less the company will be worth as their cash will continue to decline and it will become more obvious that the reserves are really worth close to zero.

So for all MAD shareholders you should hope that Yeager can do a deal to secure some decent assets before every one realises MAD's assets are no good.

And I am sure the usual posters will be on here telling me how wrong I am. I am used to that.

But what shareholders should ask is why is Yeager making noises and appointments that suggest he wants to inject some more assets into MAD.

MAD say they have 100M 1P reserves. Based on current productions that's 200 years worth. And they have 2P reserves of 200M. Another 400 years of production.

So the obvious question is. If you have 600Years of reserves surely you dont need a aquisition. All you need is the develop your reserves.

But the truth is these reserves are complete fiction

Current market cap is 170M. Looks overvalued to me.