May well be Adriano, but the sharp end of the question (for me)...

May well be Adriano, but the sharp end of the question (for me) is whether that Reserves report would have passed SEC rules and if not what reduction would have occurred. There are some subtle differences between the SEC and SPE (around the deterministic/probabilistic methodologies used and in economic calculations). The SEC appears to be more stringent. Perhaps then there would be much less 1P and an increase in 2P & 3P. Who knows - Reserves reporting is not an exact science. I am much more circumspect with Reserves with junior E&P stocks these days.

I'm not suggesting there was anything sinister as MAD states - "The reserve estimates used are those prepared by Energy Recovery Concepts, LLC in accordance with the Society of Petroleum Engineers Petroleum Resource Management System (SPE-PRMS) 2007. The assessment of reserves was conducted on a similar basis to that set out in Mr Pomrenke’s independent reserve report included in the group’s IPO prospectus dated 2 July 2010. The reserves estimates are consistent with the definitions of Proved and Probable hydrocarbon reserves defined in the Australian Stock Exchange (ASX) Listing Rules. Mr Pomrenke is a qualified person as defined in ASX Listing Rule 5.11" - which is fine but perhaps the SEC would have a different point of view (especially the 5 year rule IMO)


I'd heard that about capital raising "effectiveness" of MAD. But seriously, MAD couldn't find good people to raise capital in Houston, TX?