what price for sale ?, page-12

KiwiK, Bill Barrett, Canada gas, Devon, Chevron and obviously Questar are a few with Devon, BB and Chevron being the big ones. No I didn't visit CC because of time constraints though the Devon boys have. They expressed some interesting views. CC is geographically challenging which is not new news as we already know that. They felt that MAE is an asset that best belongs to a bigger player and indicated that the operational problems MAE has encountered are common for greenfield operations though they hinted that MAE management was largely at fault for not being able to stabilise production - questioned their drilling methods but not a major problem. Being a small player, they also suggested MAE had problems securing equipment and labour during the heady days of high gas demand and prices - slowed them down incredibly. They honestly felt MAE will find a home. I asked them if Devon was that home. They just smiled but gave nothing away. Another interesting conversation point was the IRR. Negative points for MAE management. The reserve downgrade had to do with lower gas prices, something they claim MAE should have managed. But with predictions by Boone Pickens and other gas people of Henry Hub back to $US6-7 within twelve months, they felt 1P reserves could easily increase to 350bcf. KK can't add any more as this was pretty the conversation. If people are seriously thinking about buying MAE shares, I would suggest anything up to 35-36c is a buy and then a hold thereafter. Just my thoughts. Over and out.