It has gone through phases of being a sure thing. Defining 'thing' is the difficult bit now, as the companies profile has changed, in the publics view, a number of times now.
Once, our profile was exploratio - and that is the play you invested in when you bought our shares. The share went to something around $1-80 at that time due to promised reserves and a long term aim to use those reserves to improve the companies assets and then sell the company outright.
Then, our profile appeared for some time to be that of a gas producer with exploration innthe background but a driove to be a produser in the region. Flow rates were testament to our ability to do this. Gas prices were as high as $14 at this point and the share enjoyed +$1 levels.
SInce then, our profile has become - what many of us beleived to be - multifaceted. That is, we were supposed to be producing while exploring, yet with strong background influence to sell up the farm at a great profit. At this same time we had discovered some enourmous reserve potentials with the Mancos Shale and Emery Coal formations which were bearing aroun 4Trillion feet of recoverable resource.
All things appeared to come to a head. - We had a sure asset with a mix of proven 1,2 and 3P resources and with enourmous potential independantly assessed for the newly discovered reserve. A final Report was done which downgraded our and every gas reserve in the world based on a "economical extraction" bell curve. Our area/play/costs etc in some areas meant that our economical 1,2P resource had almost halved. This was not a problem to anyone in the industry, as everyone had the same rerating process and everyone still had the reserves they previously had, although they were not economical in this economy and such reserves were relegated to "contingent" status.
In a nut shell, our position hasnt changed as acompany, our assets havent dried up or been abducted, they are simply now based on THIS economy and this economies idea of what is "economical".
So essentially, we have shown we have good reserves, some developed, some not, some at production levle, some not, some oldies on the backburner and some newies on the horizon.
We havent heard about anything opfficially from the company except that we are due to hear (end of the month, early next) about our extension of finance. And it is reasonable in my mind to expect that another news release on the status of our companies sale is imminent.
IN THE BACKGROUND and having come only from forum sources which i do not trust alone, it is claimed that we as a company are now putting off the sale due to no buyers...(which would definitely be anounceed if it was the case)....and we hear that due to the lack of interest we are now going to concentrate on exploring and producing again....which would then bring reason for the company to detail when and why it was ceased to begin with (probably due to poor economics) and which well sare active and why others arent etc etc etc....(which io thohught would be another good reason for an anonucement).... And also in the background, we have a lot less chatter and rumour going around and so a lot less daytrading/gambling on stories....as late as last week, another hot-tip fizzed out.
So, beware for there has been and will continue to be rumour about this company. Many of the mongers have gone.
And about us...after experiencing so many factors that have brought some of us to beleive that our companies outlook/direction may have changed, i do not think it wilol change in the publics minds until it is cleansed with an official annoucemnt -to organise our minds on whether or not our investment/activities/corporate course has altered and the details surrounding why.
If nothing has changed, then thast great and we may have a sale soon as promised.
The Directors are cagey and arent really taking calls and i suspect it is for a reason with my positive side guiding me...my negative side guiding me will make anything up to suit itself and probably ignore official anouncements and take notice of claims made in forums.
Its a tough one.
So, MADMAX,
Note the OFFICIAL annoucements which detail the direction and activites of our country.... If hyou do that, while ignoring absolutely evry other thing (*rumour speculation etc) tell me...what do you think is the answer to your question? Please share it with us ;-)
Cheers,
Lautrec
MAE Price at posting:
23.5¢ Sentiment: None Disclosure: Held
