The Mungi sales are resricted by current production not contract restriction . The current development wells at Mungi are 100% sole risk/reward wells . Anglo Coal will buy the gas, unless another buyer emerges .....
An October report I hold states that MPO is currently negotiating with a number of parties regarding long term sales and significant volume supply . Time will tell .
If SHG can increase reserves, sign deals, and trade on a market cap/2P ratio of 1.15, then I suggest no one should discount MPO increasing reserves significantly, signing additional sales contracts to the existing Anglo Coal deal, and trading significantly above its current market cap/2P ratio of 0.75 (using current 2P levels .
There is a major value anomoly at MPO . Because of irrational consolidation concerns and placement overhang, MPO is travelling undervalued .
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
