re: Ann: Molopo Completes Sale of Spearfish O...
We want to see some action... reported in a timely manner. They dont need to go to the extremes of the juniors and report every 2 days how their wells are spudding along.
We want to see some goals set and a minimum of monthly updates on progress against forecast.
We want them to earn their dollars and grow the company.
Saying we can't value North American assets is garbage. Look at all the Australian resource projects overseas without any Australian holdings at all. Its a cop out the old board tried to use and just doesn't ring true to anyone.
Without going into big detail some back of the envelope guesstimates are:
Conservative estimates would have QLD assets at $200m (with strong upside if the LNG market gets tight on gas maybe as high as $500m).... but at the moment most of the majors have their gas and a plethora of options to source more.
South Africa - hard to say - maybe $50m maybe bugger all.
Bakken and Wolf Camp - Right now not much but $300 - 500m if they prove some reserves at Wolf Camp and get a proof of concept for Bakken. Some potential upside with Wolf Camp given some of the recoveries...but we dont even know if they are on the fairway yet.
Quebec - not much right now but 5 core holes and 2 production pilots could see a conservative $1bn price tags with upside to $5bn if things go good.
They need to get off their A$$es and prove some of this potential up and hurry up about it already.
Ian Gorman's statements were the most positive things we have heard for awhile...but I don't want to wait three months to hear plans that are going to take a year to deliver upon. Some patience is required but they need to get their act together in a hurry. 2 years of stagnation has not helped with shareholder confidence.
Gazman
MPO Price at posting:
$1.02 Sentiment: Buy Disclosure: Held
