** whilst some s/h are angry at the situation, take note of the HC statements about not defaming anyone. Just be careful. Words like "con" and "Ponzi" don't sit well imho. ***********************************************
there seem to be two new issues re new regulations: - proposed new regs by Fed Govt which make water environment issues part of the Fed Govt review process. These new regs do not apply to existing approvals - new regs proposed by NSW govt which include amongst other things, a 2klm buffer etc. These new regs do not apply to existing approvals.
The questions I wanted to ask posters are:
1.MEL has conventional oil & gas wells with an oil discovery in NR. so do these new regs apply to MEL's Conventional O&G wells???? (I think they probably would?)
2. if they did not, then could MEL continue proving up conv reserves for production?
3. what are the attitudes of the 2 biggest s/h - LNG and ERM? How much will they be hurting? What will they do with their s/h now that the gas in NR permits will not be available in the foreseeable future? They cannot unload their shares in the marketplace thats for sure. So I suspect some corporate action to come!
As a non-s/h, I believe that MEL is still alive and kicking. All that has happened is that a change in Govt regulation has caused a massive loss of value, and made the existing business of MEL (ie its operations in NR) unviable at the current time. How many other coys have suffered the same fate? Plenty. Just look at that Aust drug coy the other day that had its new drug knocked back in USA. Its shares dropped like a stone. Same principle.
MEL has done the right thing in circumstances. It is preserving cash. It seems it is retaining its core technical people. It MUST ensure that it is SOLVENT !!!!!
IMHO, MEL's current position is not unlike a new listing coming to market. It's now similar to a "cash-box" company - albeit with a history.
It still will have valuable capital in the form of the remaining people, and it is ready-to-go if it can find appropriate assets to acquire and operate.
cheers
MEL Price at posting:
7.3¢ Sentiment: None Disclosure: Not Held
