Very detailed quarterly released. All the dirty laundry and a...

Very detailed quarterly released. All the dirty laundry and a concise history of the region all in one. It appears unless Goldman Sachs decide otherwise (ie talk the board out of a sale due to the Global Financial Crisis or a need to show say 12 months of 20mmmcf) we have five months till sale

Reasons for this are as follows:

1) The Loan maturity date remains unchanged
2) The bank (being in part the Dutch government) now has skin in the game via the 7 million options
3) The excess funds borrowed clearly are designed to run the company till June and no further (given the rate cash is being spent)
4) Notice thE first paragraph under "Clear Creek Field Well Development". They mention it will take at least hundred wells to drain the field. Clearly this requires resources beyond the reach of MAE
5) The whole report repeatedly states 20mmcf is within reach. You can almost see Goldman Sachs tell MAE "you guys reach 20mmcf then the Reserves Report can be finished and we can sell the baby
6) Directors options all expiring 30 June
7) I think MAE has limited financing and capital raising options for the long term (12-24 months) and I cant see profits and cashflow suddenly coming out of nowhere in order to sustain the company without such capital raising options
8) Its unlikely the Dutch government would throw more money at MAE in such an environment if MAE was to continue to struggle long term

It appears this extra $10M is designed to cover running expenses to generate the 20mmcf, which so much depends on.

One has to see this out till June. After that by all means cut and run but all the factors point to a sale in 5 months. We will see if management mucking around over the last few years will cost the shareholder much in a final sale price