Just changing the discussion from merely stating what the current price is:
My final last minute estimate of the quarterly is that it will state (hidden behind rhetoric) that:
Reserve Report is nearing completion Flow rates are no longer being sought after.
After all my research above I found out that a reserve report for 1P can be Developed or non-developed. Non-developed is whether additional capital expense is required to extract the gas. So therefore, I admit, I was wrong. Flow rates are not necessary for the Reserve Report
BUT!!!!! This means:
a) a Reserve report for 1P Non-developed will result in a lower price then a producing. That is why so much time and money was spent trying to get those 20mmcf. If we had got it, we would have 1P Developed and therefore a higher price. (This is already in a lower price range because it is not free flowing gas but rather needs to be pumped)
b) Secondly, capital expenditure on getting flow rates has either stopped completely or will soon stop completely and we wont see any significant flows whilst MAE owns this field. This means no income. Once again, i think you are playing a risky game.
Not too long to go - I think, for the first time, i've got it figured though.
Comments?
MAE Price at posting:
52.5¢ Sentiment: None Disclosure: Not Held
