Hi Ptolemic, thats the best explanation I've seen to date as to why the reserves figures should be questioned. If you can send that info that would be appreciated.
Excluding point 3 for the moment, what you say makes sense. The comparison to OSH is interesting in that it also has a high R/P ratio and their situation is similar in respect of the historical data surrounding their fields. This makes me ask myself (to go and check) what other companies drilling in the well developed fields in Texas have been able to prove reserves in a similar way to MAD due to the historical data.
Re point 3, that calculation is just another way of stating that MAD is not cash flow positive, and a early stage producer is typically going to look like that _ I dont think MAD is at all unusual in that sense.
Re the final spacing calculation, I'll come back to you on my thoughts on that - I have a question mark I want to check before responding.
Cheers, Sharks.
FDM Price at posting:
60.5¢ Sentiment: Buy Disclosure: Held
