Nobody seems to want to comment on my view of the significance of Maes statement( which I say amounts virtually to an unequivocal view )that "Mae" expects to be able to sell gas before long at a profit if gas prices similar to those achieved recently are achieved i.e. no assumption of higher prices than about $3.60 in the next month or 3. Hey,this is a major statement about Mae and will sure as hell be picked up by interested parties(buyers of the company) if market watchers dont pick up on it,IMO.Ive waited for over 2 years for something more than the "$2.50 "cash cost in the Brokers report (by Tricom,I think, about 4/07) wondering how much work went into the calculation of such a figure in the halcyon days when many were full of the joys of springtime in regard to Maes potential and when that report (or the other one by Pattos)stated that Clear Creek was a jewel (possibly or even probably beacause of its expected cash cast of producing gas). In my book Mae has stated that it can make money at present at$3.60 and,inferentially, confirmed that a cash cost of the order of $2.50 was,and is, in the ball park. Hopefully ,before making this current statement, Mae has had a look at what really is the current cash cost of producing gas at CC allowing for all the expenses that werent allowed for in 2007 and which have resulted in share issues and extended borrowings. At the risk of repeating myself-this is a major statement for those interested in just how good a field CC is and just how saleable it really is. They havent said that CCs cash cost is $5,or $4,or $3,50 (this cost would make the suggestion of profitable production at a gas price of $3.60 a very dodgy claim and at the 2 higher prices I would be using different language). $2.50,or even $3 , makes CC a relatively low cost producer and with a potentially superb marketing position through the Rex pipeline and the certain-to-be -built-by-3/011 and certain- to- be-successful Ruby pipeline(certain because of Pacific Gas and Electrics guarantees in place) Mae should be a very saleable with a few problems we all know about. A quick rejoinder on gas prices. Please be careful on quoting prices in the high 4s currently. If you quote a futures price youve got to quote which month you are quoting. The current price for delivery in October is about $3.70, and for Nov,Dec and Jan delivery about $4.80,$5.60 and $5.80 respectively. The futures prices continue to tell you that we are looking at prices $2 above present prices when the cold sets in in Dec. Cheers
MAE Price at posting:
20.0¢ Sentiment: None Disclosure: Held
