why i don't buy mmr, page-2

Maybe I'm too passionate about MMR Nandina, certainly not an expert. Like some others, have spoken to management a few times and hope I have a reasonable feel for the situation.

Addressing your points first:

1. My understanding is that Santos did not have the exploration technology available today and there has been much more thorough reveiw of the formations since. This has been a factor in the recent delay - they want to get the drill targets right.

2. Do not understand "flat spots" and expect one of the more technical posters might be able to help you. Sounds like a prospective zone for hydrocarbons in their Feb release.

3. Initially MMR will have 50% of PEP 11 from memory and is shown in some of the Advent presentations. Other players are BPH, GBA, Talbot Group and Bounty Oil. 50% will be more than enough ownership in the early days of the initial activity, see below.

4. Not sure, have discussed with management and the board had not yet determined. You would think MMR holders would get an opportunity.

Now the reasons MMR may be worth further consideration:

A. No-one knows if Advent will be able to develop PEP 11 into a commercial field, however there is likely to be a lot of media attention if & when they:

o announce initial drill rig details inc planned timing, zones etc
o receive Dept of Environment approval for initial drilling
o start initial drilling

During these weeks and months the MMR SP will likely rise in anticipation and then the results will determine SP levels. If these results are successful then we may find MMR share diluted to some degree, who knows, but probably won't matter too much by then.

B. MMR has pdf (pooled development fund) status so and profits from share gains and any dividends are tax exempt.

C. I am impressed with the credentials of the board, which you can review on their website.

Hope this gives you some +ves to consider and trust others will provide their rationale. It is hard to see the SP not responding to the announcements which we know are pending, just don't know when.

The never ending "drilling rig negotiations are at advanced stage" is frustrating, however believe that is because they wish to fast track the approval process (possibly less than 20 days) once they've finalised the drill rig specs and also maximise their chances of drill success.

You might sit on the sidelines and wait for the first milestone announcement, however it is not a heavily traded stock and could jump depending on the news.

Best wishes with your research and investment outcomes.