This is a long running debate and at the end of the day some of us will walk away with our tails between our legs. I have worked with so many companies as a consultant, I know the warning signs and what people do to hide a mess. As an outsider its even more difficult to see what is happenning on the inside of a company if they try to obfuscate information.
This company has some massive warning signals. Directors bailing out on mass, and not being replaced the biggest giveaway. The financials are nothing short of terrifying, and the asset value is clearly overstated.
After 5 years this project is nowhere. They could have pumped out these wells 5 years ago. In fact they already did, and trucked the water. There was little production back then, and there will be little production now. Nothing has really changed, its just cheaper to dispose of the water.
I have difficulty seeing how they will get to 3 mmcf/day with the current wells and after that they have no room to move except to drill more wells with money they don't have.
The debt remains crippling, and is still ticking over even if they do not have to pay it right now. They will have to pay it in the future.
MAE Price at posting:
1.7¢ Sentiment: Sell Disclosure: Not Held
