Okay, question time on something which has been bugging me for...

Okay, question time on something which has been bugging me for some time; ie the great announcement re: the first Duvernay Shale farm in, and the subsequent spinning of wheels of the share price( and for the person who asked was this the best piece of land and will MKE now be getting less for the rest of the sections, listen to the CEO's last radio announcement in which he gives a great insight into their strategy. This is a launch pad to securing much bigger payouts and working deals on the 80% of land that is left; there are several HUGE companies that will have to release their drilling results shortly. Admittedly, if the results are crap, then that will dent things a bit, but these guys are not covering the whole area in rigs on the off chance that they may hit something worthwhile. Still the possibility is there. By securing 10 million dollars of working capital, MKE secures itself in these troubled times, and from a POSITION OF STRENGTH can negotiate harder for subsequent sections of its land. If ANY of the big guys hit worthwhile flows, then MKE gets to write its own ticket on price , and get a better percentage of future earnings etc on each of its parcels.

Okay, back to spinning of wheels on share price.

The announcement on the 29th December of release from escrowed securities of 12,500,000 shares. MKE acquired Ventoux Resources' 80 sections of Toronto land back in December 2010, for a total of 12, 500, 000 shares, if this is the parcel of shares that was released from escrow( a yank term meaning: SECURITIES DEPOSITED WITH A NEUTRAL THIRD PARTY TO BE DELIVERED UPON FULFILLMENT OF CERTAIN CONDITIONS, AS ESTABLISHED IN A WRITTEN AGREEMENT ), then does that necessarily equate to 12. 5 million shares suddenly coming available to guys who don't necessarily care what price they get for their shares( ie they will settle for the crap market price at the moment ). Since the 29th December, just over 3 million shares have traded, at a narrow range of 14c to 15c. I have accumulated on these shares( like my other big holding AXZ ) because which ever angle i approached it( even less than flattering drill results from the big companies on our borders ), the share price seems to be way way way undervalued. If my hypothesis is right( and i hope it is ), then the reasons the share price continues to be subdued, are:

: Stockholders hold stock purely to sell it at the earliest opportunity, due to their selling of Ventoux Resources( remember MKE is a new incarnation as an oil exploration company )

: At the moment MKE is solely listed on the ASX; let's for one minute accept that in the scheme of things, we are still a small fry stock exchange , and once MKE lists on one of the North American exchanges, this will open us up to the scrutiny of guys who are closer physically to the excitement of the Duvernay.

My tip is that the stock price will turn its wheels and then suddenly double, once the deadwood is traded out, within the calendar year. The upside is results from our wealthy neighbours, and the scent of a small fry willing to do business. Downside is of course that there is feck all in the drill results from those around us. Time will tell.