re: Ann: MOLOPO ANNOUNCES 2013 CAPITAL BUDGET...
Buddy,
The reason I think we will get a return of capital is due to the board having two choices, either they bring in a partner with technical capability or sell all the assets. There is no way we will operate the acreage.
I suspect it will be difficult to attract a partner with the production results so the acreage will end up being sold to some existing wolfcamp operator who I think would pay 60 mil including existing production. Especially when you consider we have a history of poor production so it is quite likely a good operator with internal technical staff skilled in the wolfcamp will significantly lift production.
10 mil for everything else, 60 mil cash.... Then existing franking credits.. and we are worth 60 per share in a wind up.
MPO Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
