positivity, page-9

Great post L2, I think you answered many questions.

What worries me though, is this coming Quarterly. I know in the big picture it doesn't really matter what the production is, but management will lose even more credibility if it is bad.

The Patterson report states MAE indicated the expected production for the March Quarter "conservatively 12-14mmcf/d gross average". This report was dated March 18, ie 12 days before the end of the quarter, so you'd assume they'd have a fair idea by then. With 5 wells producing for 2 months at that average rate you'd expect around $5m ish in revenue. With managements record, a lot of investors will be looking to this report for guidance. Admittedly some of this production may be booked to the next quarter - not sure how their sales are handled accounting wise.

Unfortunately if MAE loses more credibility through this coming Quarterly, no one will believe them if they report good flows for their wells in the future. The next chance we'll get to see what is really happening will be the following Quarterly in 3 months time.