'How is something "very revealing, but contingent of...

'How is something "very revealing, but contingent of viewpoint"'

I don't know, you tell me, you collated the phrase and i don't understand it any more than you do - nor do i understand how it is relevent therefore.

You clearly don't understand or don't like the fact that i have pointed out how at this stage only a valuation (for JV purpoises if it becomes relevent) excercise is being done which could realistically base its valuation/findings on Fire-sale style figures.
I don;t really think it is a very good thing to be doing.
I think they should have either found a JV opportunity THEN announced it, or else shut up for fear of appearing as 'Boy who Cried Wolf a thousand times' just in case the findings are not favourable.
Last time findings weren't favourable, MAE apparently sacked the valuer (Independant Reserfve Report), but it can't be done the same way this time can it?
So MAE have put themselves into a corner with a poor strategy IMO which could bight them on the bum - something they would like to slip out of as with last time.

I say so with good reason, as any current said 'worth' could be derived purely from the companies Contingent Reserves as that may be all they are bringing to the table (for you CG, that means 'in-ground and thus far not recovered') other than equipment.... considering its mammoth debt and negligable production figures to date.

For illustration purposes,
do you give the operator 90% of its value if it makes 20mmcfpd (due to the fact that without them MAE can only produce .500thousand feet per day)?
IE - the value of the play in the future may only ever be realised based on the Operators skill, rather than the contingent reserves...somewhere in between will be how value is derived. There is a price for everything and MAE's Operational skills thus far have been de-valuing.

So who needs who the most?

Try analysing this from the outside and it's a different picture to the positive side of the fence - it is a negative outlook and the company is currently being valued by the market after accounting for Clear Creeks Production figures.
See HCRABOC's posts if you would like to see the factual production data that would be on show, straight from the horses mouth and i think you will understand how important a role the "contingent Reserves" will be in placing value on the companies play in question.

If you want to discuss this, please do CG as i am interested in how you might see it differently.

Cheers

L


PS: By the way, i think this is a typically juicy distraction from the fact that MAE have missed another deadline for gas flows...5,6,7 yrs on.
And when they were at their best last tiome in 2007/08, the company shut them in and set up a data room for sales purposes and the flows never recovered. Today, i see HCRABOCs post on the March Production Figures for Clear Creek and it is again as though Production is dropping in line with this new JV style announcement...its all very interesting for someone who has been here before.