Been six months since MMR captured serious market attention. The SP has held up well given the recent conditions and compared to pre Aug 09 levels and believe we're on the verge of another surge in activity and SP response.
Some folk made light of the 1st February ann though I suggest slow reading of the two page update. The various slow seismic work up announcements have grabbed little excitement, however is critical in determining the rig required, consequent environment considerations and hopefully provide enough evidence for a big player to farm in.
So back to the 1st Feb ann - apart from the reprocessing and drill target selection on the 1st page, draw your attention to some other stuff:
o Drill rig - yeah we know it's at advanced stage
o Environment approval - "approvals process is rig specific. Advent environment consultants RPS and other consultants are currently completing a further standard work program for this process".
o Well planning - "Du-el contract staff are currently engaging in the completion of planning, sourcing and contracting ancillliary services and equipment for the well"
o JOINT VENTURE - love this "Plans for the process were matured during meetings with Pareto staff in Perth in Januray" and this..
"THIS PROCESS IS DUE TO COMMENCE WHEN THE DRILLING CONTRACT HAS BEEN CONCLUDED AND DURING THE PERIOD IN WHICH APPROVAL PROCESSES ARE BEING COMPLETED" (my caps).
o Site survey - "planning is at advanced stage with the preferred tenderer advised. The precise site selection is being refined through the current seismic reprocessing process".
Last Thursday we got a fairly lame ann regarding operational progress with some ancilliary services including helicopter services.
So why did I buy more on Friday?
Look at the chart above, the elapsed time and recent announcements. Also remember they have set themselves ambitious target with BPHO which expire end May. Du-el are beavering away with planning for the well. So we're just waiting for the rig finalisation which will trigger environment approval process and they are doing everything to ensure this goes smoothly. Then there is the joint venture scenario.
Whether its March or April, we can expect the result of all this seismic reprocessing, well and environment planning and rig negotiations will eventuate and there could be a series of announcements before the end of April.
MMR - emerging offshore superstar!!
MMR Price at posting:
32.3¢ Sentiment: Hold Disclosure: Held
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