While no one generally likes a CR it is a standard part of the...

While no one generally likes a CR it is a standard part of the junior oiler tool box. I prefer to focus on what may happen from here, the use of the funds and the general restructuring of the company. Hence the title of this thread, taken from the most recent MAD presentation.

We have been fortunate to get some detailed information in the last week from Yeager directly and the latest presentation.

In no particular order here are some of the highlights:

1/ Transition from a drilling team to an E&P team. Essential if we want MAD to maximise its existing portfolio and those of the future. It will be tough on existing displaced staff but it is a necessity and more importantly its happening.
MAD has 35 years as a drilling company and it still tries to operate this way as an E & P company....its changing quickly under Yeager.

2/ Deep drilling into the Vicksburg zone. Seismic suggests larger targets at greater depth than currently being drilled. the first of these wells is under way and is likely to comprise 10% of drilling from here on if results warrant it. Success here would mean additional reserves for the company.

3/ Reserves Certainty. This issue is to be clarified by late June. I expect commentary on this in July. Seismic is being reprocessed and a recognised reserves assessor will be putting their name to the 1P/2P/3P reserves.

4/ Multi Asset Company.

While there is no timeframe for a new asset this process is underway and will become advanced when additional staff are in place. Assets are already being made known to the company.

5/ Halving lifting costs. Blue Ridge is to become cash flow positive as a result of staff and machinery restructuring. Middle management and completion rigs are being targetted . We should here more on this in the coming months.

6/ Deal Funding. Deal finance is already the subject of negotiation.

People will no doubt have their own points of view as to MADs likely success but we should not let the past get in the way of what is becoming a totally new company with a new approach and new directions.

Personally I am looking forward to the next 12 months.