I am thinking this is a precursor to a capital raising. Get the share price up and then go back to the market for more cash.
7 mmcf a day from the first Ridge Runner well is impressive but as Davo notes gas prices in the Rockies are lower than Henry Hub and you need to factor in natural decline. Have asked the company to let me know what the likely p'dn rates will be when all three wells are in p'dn.
The oil show is interesting but as the company itself acknowledges will need further testing and drilling to determine its ultimate value. It is not a 100 foot oil column but oil shows in the drilling mud over a 100 feet interval. Very different animals. Company want's you to think it has "discovered 100 foot of oil'.
It is this capacity to announce disinformation or misleading information,whether intentional or not, that worries me about Marion.
Still think Marion is way over valued compared to other Aussie juniors in the US. The Paterson's Report is no guide to the company's true value as all it does is repeat Company info. No forensic work on that paper unfortunately.
Patersons is predicting $100 million in revenues for Marion in 2008. That's big call based on past experience of MArion's promises.
MAE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
