Ann: Preliminary Well Results From 54-1H , page-28

What I want to know is how the hell we went from this on November 29 to this on December 21..

Exhibit One:
Production in October 2012 totaled 932 boe/d, with 83% coming from Texas (775 boe/d), and 17% coming from Saskatchewan (157 bbl/d). The breakdown in October by product was 52% light, sweet crude oil; 19% natural gas liquids; and 29% natural gas.
• Despite the significant growth in our production over the past month, Molopo’s October production was curtailed by approximately 100 boe/d due to downtime and associated flaring. The majority of this was caused by operational problems experienced on third parties’ externally operated gas systems.
• Molopo expects to exit calendar year 2012 producing in a range of 1,500 to 2,100 boe/d, depending on production timing and results from the Baggett 54-1H well and the 24-2H well in Barnhart, which was drilled later in the year than originally planned.

Exhibit 2:
Early in 2012, Molopo set a projected exit production rate which was based on production contributions from all 6 wells to be drilled in the latter half of 2012, and also assumed well performance consistent with type curves originally seen in the area. Due to timing delays, as well as variability in well performance, Molopo now expects to exit the year with a production level of approximately 1,000 boe/d.


Some 30 days is all it took to lose that 500 boe/d and they give this update today and basically don't elaborate on performance on the other wells. Very poor communication and why reiterate that on the 29th November. I feel for those who bought in on that projection only to learn they were thrown the mother of all hospital passes.

Still as I said before I ain't selling while we have 100% cash backing and if they do announce more spending in Fiesta then we should all be calling an (another) EGM.