It might pay folks to review what happened in 2012 when MAD's SP...

It might pay folks to review what happened in 2012 when MAD's SP skyrocketed:

Jan 2012, Blue Ridge 1P reserves were upgraded from 12mmbo to 28mmbo. Prior to ann the SP was 22c.

The company reports successful wells at Nash and Boling domes within weeks and a month later the SP was at 80c, and $1.50 by April when Nash dome and Boling dome reserve upgrades were released. Quarterly average production was 742 bopd.

Out of the 102mmbl reserves half was attributed to Boling, and a quarter each to Blue Ridge and Nash.

Look at the situation today:

1. The SP is back where it was prior to the Blue Ridge reserves upgrade and Nash and Boling drilling results.

2. Production is double what it was at the beginning of 2012, most of it coming from Blue Ridge where most of the development continues to be concentrated.

The market has basically - imo - written off all the value it got excited about in early 2012, which revolves mainly around Nash and Boling dome results and reserves - despite production being double what it was back then.

Assuming a reserves downgrade comes out, it wont be too much of a surprise to many so not too much more damage to the SP to be had - imo.

Cheers, Sharks.