What a terrible report, IMO MAE have little hope from here and for shareholders the upside potential is slipping away.
1. JS Gone. Come on he was meant to be the saving grace, remember his momentus speach high risk high reward. Well he's off and common sense would say his risk reward rations just didn't pay off for him anymore. BAD OMEN no matter how some may want to view it.
2. Gas
Firstly Helper and Oklahoma had 30bcf of their total reserves Im just going to work on the basis that the whole lease at those two sites are gone becuase if they aren;t already they will be soon.
So you lost 30bcf or 12.5% of your reserves BUT
Go back and look at the scott ryder report, you know the one that staes 4tcf of gas resource it states the following
Emery coals at CC 814BCF with revoerability assumption of 70%. So 500CBCF of resource in this reservoir at CC. (RESOURCE NOT RESERVE)
Mancos Shale CC 5.5 TCF with revoerability of 4-10% So 220- 550BCF of potential gas.
MANCOS SHALE HELPER: 26.2 TCF recoverability of 4-10% So 1.05TCF - 2.6TCF of potential gas.
HELPER is the field where most of their potential resource is and they are giving up acreage and will most likely loss a huge portion of this RESOURCE in place if not all of it.
So do your back of the envelope calcs on that guys and JUST use CC potential and see how your ten bagger looks now.
IMO more like 1/10th bagger and their latest stratgegy won't even have results till March quarter at earliest. Another 6 months at least of value destruction coming your way. (if it survives that long)
well at least JC is still at the helm getting paid 500K a year plus (sic)
MAE Price at posting:
3.5¢ Sentiment: Sell Disclosure: Not Held
