My reasoning is in the next few months, mad is going to be flat out drilling and working over there wells, so slowly slowly production will come up. At the moment the shares are massivaly overpriced compared to production. So what will have, is the shares will continue to track lower, and production will continue to track higher. By sept/oct, mad might be in the position of having production close to 1200bod, and a share price of 30 cents, then i believe mad would be fairly priced, and the down trend would swing into an upswing heading back towards 50 cents, when, only when production keeps going up. If mad stuff around again, forget about all i have said, thats the problem, they need to focus now. No more games to try and get the share price to rise.
Ex factors are gulf, if they succeed or pull out, will have effects on the share price.
The High impact well strategy most probably will be wound down, and the company will look at aquiring more expensive acerage, that potentially has more higher flowing wells in texas. Good stategy if they do.
Basically mad have wasted alot of time the last 12 months, the next 12 months they cant do that. This is why the market has punished mad, and will continue to punish mad in the new yr
FDM Price at posting:
71.5¢ Sentiment: Sell Disclosure: Not Held
