I think the CAPEX required per well has been missed in all of...

I think the CAPEX required per well has been missed in all of this.

MAD operate a low CAPEX model per well. Very very low compared to every other type of well.

The perception is that because they need to drill lots of wells to get the oil out that they are not going to make good margin. That perception is flawed because of the minimal CAPEX required per well so the ROI per well is what we should be focussed on.

Off the top of my head the production costs for Q1 2012 were roughly 10% of oil revenue. This is a pretty good indicator of the margin possibilities and ROI per well.