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0.4¢ mec resources limited

Playing dead, tossing out the toys or hiding from the wind?, page-8

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RichMan73

543 Posts.

98

31/12/18

09:31

Post #: 36987761
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Originally posted by azbo: ↑

Hi AndyIgo, that's a good question. Maybe have a read of my earlier post for an analysis of the mysterious characteristics of PEP11:
https://hotcopper.com.au/threads/pep11-is-a-lot-like-an-electron.4565078/
Technically, RL/SGC will earn 60% of PEP11 after paying a pittance for a postage stamp-sized area of 3D seismic. So at the moment, it seems like SGC will have the greatest exposure to PEP11, if the deal goes through and the seismic gets done.
Assuming that occurs, then MMR should be left with an indirect exposure to PEP11 of about 30% via its ownership of Advent, Asset, etc.
However, neither of these companies seem large enough to raise the funds required to drill a well, so it is likely that further dilution will occur.
Hope that helps!

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The issue of further dilution has been fully tabled, starting with the fact that the Market Cap of MEC is about $4.5m and the 3D seismic is expected to cost about $4m so a 50% dilution would have to occur if MEC was to fund the 3D seismic. This has been discussed a number of times.
Personally I think $4m is not a pittance, as per above, it represents 100% of the Market Cap of MEC Resources.

MMR Price at posting: 1.2¢ Sentiment: None Disclosure: Held
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0 Great analysis

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