stock analysis report

latest release from Peter Strachan;
issue 7 vol 9 - another glowing confirmation of MAD

"Maverick Drilling & Exploration (ASX: MAD) is being kept very busy on its three
salt dome hosted oil projects, south of Houston, Texas. Drilling of a second well on
the Nash Dome has shown exceptionally strong results that have caused the
company to go back to the drawing board to recalculate its reserves. Not only are
reserves likely to be enhanced by this discovery, but oil production from these high
quality reservoirs could jump sharply. Reservoir porosities of over 30%, equivalent
to porosity seen in unconsolidated beach sands, along with very high permeability
measurements (over 1 Darcy) hold promise for exceptional flow rates from the
4 separate zones of oil and two individual gas zones intersected. No doubt, the
company will be conservative in its engineering of initial test production so as to
conserve the reservoir quality, but depending on reservoir thickness, StockAnalysis
thinks that initial oil production of over 200 BOPD could be on the agenda if the
lowest zone has reasonable permeability and that could be squeezed up to over
500 BOPD, depending on early pressure measurements.
By early May, Maverick should be in a position
to disclose updates of its 2P oil reserve
estimate and in the next week or two we
should also know how the bottom most oil zone
at the Nash Dome discovery is going to flow.

Recommendation: At around $1.30 per
share, Maverick remains a buy for a move
towards $1.50 per share.


OEL – Valuation Matrix
Asset Value $ per
$m Share
Galoc PI 86 $ 0.072
Galoc PII 27 $ 0.023
Unissued equity 5 $ 0.004
Net Cash + (est) 38 $ 0.032
Corporate (14) -$ 0.012
Sub total 1 42 $ 0.119
Risked Exploration upside 4 05 $ 0.342
Total value 5 47 $ 0.46
Source: Strachan Corporate Pty Ltd
MAD - Valuation $m $/Shr
Fixed Assets 13 $ 0.03
Net Cash (est) 14 $ 0.03
1P Reserves 358 $ 0.89
2P Reserves 134 $ 0.33
Total 519 $ 1.29
Risked Exploration 81 $ 0.20
Risked Value 600 $ 1.49