What I am saying is that you are suggesting price signals which have only recently become present are the reason for MADs field development. That is not true as the price signals have been there before - remember WTI getting to 125$+ in 2008? Plus the Iran-Iraq and Yom Kippur wars. If the oil exists this field represents basically the cheapest kind of development (onshore, relatively shallow, in Texas near sales point) and cannot reasonably be compared with a stranded mining asset. If there were a number of clear opportunities to develop (i.e. 1P reserves) these would have been developed before now and would have been economic since the field was discovered. Bear in mind during this time companies were sinking billions of $s in today's money into the North Sea - yet a depletion drive onshore field in Texas wouldn't give you a positive margin? Does this tells you something.
There are thousands of fields like this all across the USA which should be subject to the same price signals - why are they not undergoing the same renaissance as MAD's fields? Is it because the collective wisdom of Exxon Mobil, Shell, Chevron, Conocco, BP, Anadarko, Marathon, Occidental, etc etc etc have missed something which MAD have discovered? The answer is no.
FDM Price at posting:
60.0¢ Sentiment: Sell Disclosure: Held
