Ann: MEC Resources Ltd Placement, page-42

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Kenton

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02/02/18

15:36

Post #: 30775381
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Originally posted by MEC Resources ↑

@Avco - not quite accurate, a report was made regarding your post's repetition of what we believe to be unlawfully released snippets of potentially misleading information. MEC Resources is not responsible for many other posts of yours that appear to have been moderated.

@rogerd - To provide a balanced view, a majority (i.e. 3 of the 5) of the directors of MEC Resources Ltd are not on the board of Advent Energy Ltd.

Furthermore, you appear to inherently imply that drilling immediately would be a preferable strategy on PEP11. Whilst this could be very attractive for short term stock market speculators, the Company has consistently stated that it believes a 3D survey is necessary to ensure the next drilling program in PEP11 is derisked as far as possible. This would have the benefit of:
(i) enabling the funding of that drilling to be performed at a potentially higher valuation (i.e. the prospectivity is derisked) and thereby any dilution in whichever form at that time is minimised.
(ii) providing far greater confidence to all that the drilling is optimally located, designed and undertaken to reduce costs and avoid unnecessary risks.
(iii) upon drilling success, facilitate a far more rapid appraisal and development.

Counter to what has been stated or implied by others, to raise the capital necessary or provide sufficient title incentive now to achieve an exploration drilling program on PEP11 now could have the following negative consequences:
(i) greater dilution to shareholders in any capital raising or title farmout due to lower current market capitalisation and inherent prospectivity risk on PEP11.
(ii) Relatively lower probability of exploration success considering the relatively poorer data relied upon to both site the well(s) and design their construction - greater potential for cost overruns and 'off target' location.
(iii) The likely need in an exploration drilling success scenario (off the current data) to then acquire 3D seismic data anyway to facilitate appraisal and development works.
(iv) In the higher probability scenario of exploration failure, it would be very difficult to attract any future funding for this asset. Therefore it is an 'unsustainable' strategy in exploration of PEP11.

Further, gas will continue to be a long term energy contributor for NSW and the east coast of Australia. The PEP11 proximity to Sydney & Newcastle provides a competitive advantage over other gas projects in the country to contribute potential gas supply to this market, at any stage of the market cycle.

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Ok on ya bike son, let's get this thing on the road and get some movement. PEP11 was meant to be the biggest and brightest thing is gas exploration back in 2009.

My 2% value of my initial investment is hanging in by a thread.

MMR Price at posting: 2.3¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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