jv executed, page-53

Im not bitter at mad. I firmly believe it is over priced. I am however perplexed, how mad would change its plan so drastically. That to me means managment have something to hide. Lucky for us, wilson has explained it all to us.

I will quote

"MAD’s production has declined in the past two quarters, due to drilling rig capacity being allocated to completing contract drilling obligations, natural field decline, slower than expected tie-in of completed wells to production, and constraints on salt water disposal capacity."

Why cant the company come out and say this, not just release the news to institutions who use this and dump the shares.

The problem mad has is the water cut with the wells. As the wells get older the greater the water cut compared to oil therefore the greater the need for salt water disposal wells. Maybe the water cut is as high as 85 - 95 water, and only 15 to 5 per cent oil. They may well drill 2000 wells over the life of the project, but definately they will not be all on line, as the water cut is too high, and the authorities wont be able to authorise enough salt disposal wells quick enough. The plugged wells will help speed up the process of gaining more disposal wells. But definately production wont be increasing much at all in the near future.

Production forcast for the december quarter has already dropped again. I will quote

"We expect the production rate to increase in the December 2012 quarter, and average in excess of 600 bopd based on recent drilling and increased management focus."

Its clear that wilson's are even annolyed with mads managements focus on contract drilling and the flop of deeep impact drilling. Pretty daming statement, and i hope now management turn around there performance and get production up, becuase if they dont meanfully get production up in 6 months time, then 35 cents prediction might come true. For you guys and girls i hope that doesnt happen, the possibility is defeinately there, after the wilson report comfirmed my fears