Agree ciggys in relation to MC of IOG - $39M compared with MAD -...

Agree ciggys in relation to MC of IOG - $39M compared with MAD - $538M.

Production about the same at 750 BOED. However, MAD declares 1 Million barrels oil 1P reserves - up from 28 million at the beginning of the year with an unstated reserves figure for IOG.

However, MAD has a small fleet of drilling machines relegated to drilling their own acreage. This can lead to huge 1P reserves in the USA due to Wall Street idiosyncrasy outlined below.

I quote from a weekend New York Times article relating to the drilling for gas:

"The industry was also driven to keep drilling because of the perverse way that Wall Street values oil and gas companies. Analysts rate drillers on their so-called proven reserves, an estimate of how much oil and gas they have in the ground. Simply by drilling a single well, they could then count as part of their reserves nearby future well sites. In this case, higher reserves generally led to a higher stock price".

So! merely drilling a successful well can lead to a huge gain in 'independently assessed' reserves. A pity the MAD annual income of about $6M does not reflect their reserves; whereas this quarters income from IOG should show an impressive increase with the Florence field contributing for the first time.

MAD holders may be better off taking some of their profits and investing in Incremental.