what swith clear creek, page-11

Here is a simple summary of my take:
1. Management were over confident and underestimated the challenges associated with the terrain.
2. Management have not been honest. They have announced wells as being in production, but clearly from lack of revenue and official reporting of well status this was not that case. Perhaps they had every intention of producing from these wells at the time of announcements, but last minute difficulties prevecnted this.
3. Management have refused to clarify the situation, as this would have been admitting they previously were not honest and it seems they are digging themselves a bigger hole - the only way out is to announce actual sable production (when it does actually happen). I think management had good intentions but just failed to report objectively and factually.
4. The asset is proven to have significant reserves and commercial flow rates from historical wells.
5. Cash flow has become a problem and if CC does not produce subtantial flows NOW then we are in for some short term trouble until financing is sorted - i.e. Ok sale.
6. I continue to hold but have my finger on the sell button ready just in case.

Someone suggested that management were either dodgy or incompetent. I believe they had good intentions and were overly optimistic with earlier reporting. I know for a fact that commonly companies will report facts that are not necessary true - a slight exaggeration of the truth so to speak. They will then rely on catching up before the next report. I think this is what MAE management have attempted to do but got caught out by weather and technical difficulties. Hence, they have now dug themselves a hole and can only get out of it with one announcement.

History aside, if production is proved in the next couple of weeks to be around 20mmcfpd, we can all breathe a sigh of relief.