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You sure do need that POE dividend. We are getting closer to you and may pass you just at the finish line. SSK get the camera ready for the photo finish.
GLTY but I would be nervous if I were you.
Cheers
MAUXF Trades. If you buy on TDAmeritrade they do not show up on the total shares traded for the day. It means that if the ask is higher than the last trade and you buy at the ask, the last trade price does not move up.
If you buy on Etrade then every trade shows up.
No idea why the difference.
MMT, MAUXF.PK $2:00 contest on SH
The $2:00 contest is being run on SH
$300 has been pledged for the winner's charity.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=MMT&t=LIST&m=31262057&l=0&pd=0&r=0
List of entries as of today:
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31274818&l=0&r=0&s=MMT&t=LIST
Good luck
If you do not have a handle on SH send me a PM with your entry.
I get the first post.
Let's get us a new Mart.
MJX.V is my candidate.
Cheers
Mart MMT.V pre-AGM posters lunch
Here are the details for the lunch.
Thursday's forecast is 73 and sunny so I picked the terrace of the Marriot just like last year.
Meeting point is the lobby of the Marriot at 12 noon
I am staying at the Marriot so I will book some tables on the terrace. they can put the tables together.
It is behind the Marriot and above the Millestone grill and bar at Centre st. SW and Stephen av. se. in case you are late for the lunch go up to the terrace. The location is 750m (10mn) from the Petroleum club where the AGM is.
This is a "no host" lunch
As of now the head count is 11
Please contact me by PM if you did not yet.
See you Thursday.
Cheers
NKL halted.
NR will be out after market closes today. Should start trading again in the morning.
Cheers
We should be able to do a bit better than that due to taxes and the fact that some of the lost oil came out of local inventory.
Cheers
JFF,
The market right now does not spend a lot of time thinking about Mart. Commodities are in a down draft causing margin calls and the sell of many good stocks. If you need the money then you get it somewhere even if you know you should not sell.
Even an annoucement of the pipeline and spectacular Q1 results will not do that much to the SP.
What will do it is dividend. You get to a whole new class of investors. 20% dividend return per year (5c a quarter) will move the SP.
Cheers
Mart.MMT.V MAUXF.PK Wade on youtube at Hialpha in NYC.
MMT, I think you will have to wait another 30 days to find out the exact number. It will be in the Q1 results.
However, A public statement was made that the company has $65M at the end of April.
So, $4m in cash in December, add about $50M CF generated in the last 4 months.(December was bad and lost oil) Add 60% of the restricted account or $35M. Add $1M for Qua Ibo
Paid out $20M for expenses ($5M per month) plus $5M for other taxes
Et voila! $65M in the bank
Not bad for a back of the envelope calculation
PS did anybody noticed that the company received about $6M in insurance payment for the burned up rig.
Just go to www.stockwatch.com and enter MMT.v
Cheers
MMT 2011 results
The 2011 year end results are out . Just 21.4c a share. No big deal (LOL) Q1 should be better. (repeat LOL)
http://www.stockwatch.com/nocomp/newsit/newsit_sedardoc.aspx?docid=2645639
Hint. Read carefully about taxes.
"In October 2011 Mart's co-venturers received confirmation of approval of Pioneer Status Incentive which entitles the co-venturers to a waiver of Petroleum Profit Tax from 2009 until 2014. Mart's income tax provision for 2011 has been prospectively adjusted for its share of the Pioneer Incentive"
Anybody wants to guess Q1 earnings ?
Time for the $2.00 contest on SH.
Cheers
Once a month
Sorry I did not give the timing.
Cheers
Recap of the presentation(s) in NYC
This was really a 2 days affair. It started on Tuesday with a lunch discussion with several new funds. This was no different than the presentation given on Wednesday at Hialpha just a smaller group.
Hialpha day was quite good with some very interesting speakers. Including economists from Exxon and Citi. The Citi guy had some stunning slides showing the US as a petroleum product exporter by 2020!!! The surplus in 2020 could be as high as 3MB per day.
The panel discussion with Wade participation was quite interesting. It covered risks associated with different regions. One point was clear, better put your money in Nigeria verse in any place where the Russians are in charge. It's simple, the Russian don't drill holes in a pipeline, they just steal the company period. I'll take leaky pipeline any day.
Even places like the UK are not that safe. Remember when the UK jacked up the taxes without warning. That was just last year.
Now to the Mart presentation.
It was very well presented. The flow was very good and everybody left with a clear message "this company is real, producing more and more oil, generating cash at an incredible rate and way way undervalued"
People not familiar with Mart could not believe their ears.
Here are the highlights of the presentation
Mart is now producing at a record rate. The last few days they started to pump 15K BOPD. Things are much calmer in Nigeria so it should translate in less disruptions. March was only one day.
The company cash balance at the end of April is about $65M with no debt.
The company is generating cash at the rate of $15M after tax!!!! Just in case you do not have a calculator that's 50c a share earnings.
The pipeline deal with Shell has been signed. Everybody should understand that it is a crude purchase agreement with space reserved on the main Shell pipeline. Connecting agreements still need to be done but that should not be a problem not a problem. The crude purchase agreement is the key to the pipeline financing. Preparation work on the pipeline is already underway.
The PR announcement wording needs to approved by Shell since their name is mentioned in the release. This is very customary. No idea when that will be done but it should not take that long.
The pipeline will take about 1 year to build with a big part of the time being spent on land purchase. Translation in Nigerian time is: sometime in Q4 2013. It will be a 60K BOPD pipeline with the possibility of higher flow rate by adding pumps and increasing the pressure. It will be an underground pipeline with an 18 inches slab of concrete on top so good luck if they want to drill a hole in it.
The cost of the pipeline will be about $35M and Mart will have a 15% stake and operate the pipeline. The balance will be owned by the partner and local government.
UMU10. The rig is being moved to the next slot on the pad and we should spud within 2 weeks. UMU10 will target the lower zones below 8000'
2011 financial results will be published before month end.
The quarterly results will be published on May 30th and will include some marked improvement on the tax rate. We should get a very nice number on the earnings for the quarter.
The 2011 year end results will be published shortly. The company could not comment on the exact number but indicated that reserves will be up even so, close to 2M barrels of oil were pumped in 2011. This number will not include UMU9.
An update to the reserves will be published with the Q1 numbers. It will include umu9 but only the upper zones. Reserves cannot be assigned if you do not bring the oil to the surface. It means that we will have to wait until UMU10 to get another bump in reserves.
New marginal fields:
The company indicated that the Nigerian government may publish the long awaited new marginal field in the next 60 days. About 120 will be available. Mart and it's partners are well positioned to get some of them. Discussions have already taken place with present and other potential partners.
Dividend and share buyback.
The company will have a Board meeting early May and will review the best way to return value to the shareholders. Both the share buyback and the dividend are on the table. It could be a combination of the 2. The company is determined to come up with a solution that will be best for shareholders shortly.
Overall a great presentation that was well delivered and very well received.
In addition to the public presentation, Hialpha prepared a large number of one on one meetings with potential investors. Wade was booked most of the day.
A good week for Mart and you can see it on the share price today. I normally think that there is a one to two weeks digestion time after a presentation but it looks that the cycle is going to be shorter this time.
Next stop presentation in Houston then Paris in May and another one in NYC also in May. The road show has started.
Cheers.
Chen and eggs in the news at Barron
This is the article from Barron about the egg crisis in Europe. They of course talked to the world famous senior egg analyst Mr Chen.
As if the European Union weren't already in enough hot water, it has inadvertently cooked up another crisis, just in time for the Easter holiday.The compact's Jan. 1 directive on hen happiness, mandating that egg producers increase the size of hens' cages, has laid an enormous egg, reducing EU production by an estimated 10% to 15%. Indeed, the wholesale price of eggs there has more than doubled."The French have no croissants, the Italians have no pasta," says Chen Lin, an independent investor who pens a newsletter called What Is Chen Buying? What Is Chen Selling? "Instead of breaking the law, they are just slaughtering the chickens," he says.Enlarge ImageWilliam Waitzman for Barron'sJust Ducky: It's not clear how a recent directive in the EU on hen happiness will affect U.S. producers of shell eggs.Chen has been buying Avangard(ticker: AVGR.Ukraine), the world's second-largest egg producer, but he cautions that it is thinly traded. The EU isn't big on egg decorating, but Avangard, which complies with the new law, is selling to the Eastern Orthodox, who are.Because egg production is largely a domestic endeavor, it's unclear how the EU crisis will affect U.S. producers. Still, Chen is buying Cal-Maine Foods(CALM), the biggest producer in the U.S., where prices recently jumped more than 10 cents a dozen.
Mira resources MRP.v unsolicited offer to be purchased
http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aMRP-1928749&symbol=MRP®ion=C
Mart looked at it a couple of years ago and passed.
I have a small position. We will see if it jumps.
Cheers
That's the data I was looking at when I found out that France was exporting other liquids outside of wine.
The other surprise to me was the increase of import from Russia. From an average of about 2 MB per month in 2000 to 21 MB per month in 2011. I don't recall seing that interesting fact in the news.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIM_NUS-NRS_1&f=M
Cheers
Yep, France. I had no idea.
A big part of it is gasoline blending components
UK and Norway are the obvious one but there is a 3rd one
I changed to EU country.
Hint, they are also a major exporter of another liquid
OT trivia question
From which EU country the US imported more oil last November than Qatar, Libya and UAE combined?
MMT pipeline
4 to 5 months to build but total time including permits and land access 14 months.
Pipeline 65,000 BOPD
Total Cost $50M to $75M
Mart ownership 15% to 25% (just like AGIP)
Mart would be the operator
MMT top 50 on Venture top 10 O&G
TSX Venture Exchange Announces its 2012 TSX Venture 50®
February 15, 2012 ( TORONTO) – TSX Venture Exchange today announced its 2012 TSX Venture 50.
The 2012 TSX Venture 50 is a ranking of strong performers on TSX Venture Exchange. It is comprised of ten companies from each of the following five sectors: Mining, Oil & Gas, Diversified Industries, Clean Technology and Technology & Life Sciences.
“The 2012 TSX Venture 50 is made up of listed companies that have stood out and excelled,” said John McCoach, President, TSX Venture Exchange. “We are pleased to recognize these companies and wish each of them continued growth and success.”
The companies were ranked based on the following criteria, with equal weighting assigned to each: market capitalization growth, share price appreciation, trading volume and analyst coverage.
The top ranked company across all sectors is Roxgold Inc. (ROG), a British Columbia-based mining company.
The top ranked companies from the five industry sectors are:
Clean Technology:
Canadian Oil Recovery & Remediation Enterprises Ltd. (CVR)
Diversified Industries:
IROC Energy Services Corp. (ISC)
Mining:
Roxgold Inc. (ROG)
Oil & Gas:
Petrolia Inc. (PEA)
Technology & Life Sciences:
Verisante Technology, Inc. (VRS)
The 2012 TSX Venture 50 are:
Clean Technology:
Diversified Industries:
Canadian Oil Recovery & Remediation Enterprises Ltd. (CVR)
IROC Energy Services Corp. (ISC)
OPEL Technologies Inc. (OPL)
BTB Real Estate Investment Trust (BTB.UN)
Western Wind Energy Corp. (WND)
Leader Energy Services Ltd. (LEA)
Naturally Advanced Technologies Inc. (NAT)
Kelso Technologies Inc. (KLS)
Seair Inc. (SDS)
CWC Well Services Corp. (CWC)
Innovative Composites International Inc. (IC)
Titan Logix Corp. (TLA)
EnWave Corporation (ENW)
Temple Real Estate Investment Trust (TR.UN)
Titanium Corporation Inc. (TIC)
Energold Drilling Corp. (EGD)
Wavefront Technology Solutions Inc. (WEE)
Lonestar West Inc. (LSI)
H2O Innovation Inc. (HEO)
Pure Industrial Real Estate Trust (AAR.UN)
Mining:
Oil & Gas:
Roxgold Inc. (ROG)
Petrolia Inc. (PEA)
Prodigy Gold Inc. (PDG)
Azabache Energy Inc. (AZA)
Cap-Ex Ventures Ltd. (CEV)
WesternZagros Resources Ltd. (WZR)
d'Arianne Resources Inc. (DAN)
Americas Petrogas Inc. (BOE)
Newstrike Capital Inc. (NES)
Aroway Energy Inc. (ARW)
Rye Patch Gold Corp. (RPM)
Petro One Energy Corp. (POP)
Galway Resources Ltd. (GWY)
Compass Petroleum Ltd. (CPO)
Iberian Minerals Corp. (IZN)
Painted Pony Petroleum Ltd. (PPY.A)
Pershimco Resources Inc. (PRO)
Mart Resources Inc. (MMT)
DNI Metals Inc. (DNI)
CGX Energy Inc. (OYL)
Technology & Life Sciences
Verisante Technology, Inc. (VRS)
IntelGenx Technologies Corp. (IGX)
RMS Systems Inc. (RMS)
DiaMedica Inc. (DMA)
BioSyent Inc. (RX)
Titan Medical Inc. (TMD )
Amaya Gaming Group Inc. (AYA)
BluePoint Data Inc. (BLP)
C-Com Satellite Systems Inc. (CMI)
biOasis Technologies Inc. (BTI)
Methadology:
The 2,250 companies listed on TSX Venture Exchange as of December 31, 2011, were screened through the following filters to determine the 2012 TSX Venture 50: listed on TSX Venture Exchange on December 31, 2011; market capitalization greater than C$5 million on December 31, 2011; closing share price greater than C$0.25 on December 31, 2011; share price of at least C$0.10 on December 31, 2010 and listed on TSX Venture Exchange more than one year as of December 31, 2011.
As of December 31, 2011, there were 2,250 issuers listed on TSX Venture Exchange. Almost $10.1 billion of equity capital was raised on the Exchange in 2011.
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Montreal Exchange, Canadian Derivatives Clearing Corporation, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London and Beijing. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
For more information please contact:
Aimee Paget
Communications Specialist
TMX Group
416-947-4685
aimee.paget@tmx.com
MMT MAUXF Shut-in days
We all hyperventilated when we looked at the number of down days or so called shut-in days for December.
I did a bit of research (now that's a surprise) on the past shut-in days.
Total shut-in days for 2010: 92 days
Total shut-in days for 2011: 50.22 days
Total forecasted by the company per year: 60 days
The 2011 numbers include the 11.5 days for December.
Granted we are not starting 2012 very well but it helps put things in perspective.
"In God we trust, others bring facts"
Cheers
MMT MAUXF Comments on the latest PR
Now that everybody has calmed down about the PR let's do a bit of a postmortem about it.
First of all we can all agree that it was a really bad PR, maybe one of the worst one in a long list. Over the last year we had seen a marked improvement in the communication then came this one.
I believe we are suffering from an over cautious Board run by lawyers. Of course a Board should be careful about not publishing misleading or over optimistic information and the Board has to published material events immediately. However the Board has to realize that publishing news that will obviously be interpreted as very negative, when in fact it is not, is as bad if not even worse.
Think about it this way: 11M shares were sold that day. What it means is that 11M shares were bought at a bargain price. One could think that a lawyer would be concerned that the TSX may read into it something that may or may not be there. Just imagine if some very good news is going to be reported soon ( dividend, Shell deal, others) Then what?.
In any case why not just report the facts on both sides of the good news / bad news and highlight the positive. I think the Board got the message from many stockholders and will take corrective action.
Now for some of the items on the PR
210,000 barrels. (130K for Mart's share) It was unexpected and came without warning. Well almost no warning. Remember that ENI wanted 11% for lost oil. The 210K is "only" 7%. Should we feel good about that?
Why not report in the PR that it is only a demand form ENI and that they have to justify the numbers with an audit. The Nigerian government will be asking ENI a lot of hard questions. Also the previous assumption was 3% so what is the real impact?
Note this interesting fact:
We do not even know if Mart's JV was paid for the missing 210K of oil since it never got to where it is supposed to go.
Mart pays royalties at the well on the basis of each production day. Mart gets paid by ENI at the lifting on the other side of the pipeline. Could it be that the liability of Mart is just the transportation cost of $3 per barrel? I have no idea and since this is the first of its kind by ENI I do not know if the company does.
Also did ENI charge Mart for loss on the "deficit oil" repaid in the 1st quarter? It is worth checking.
UMU 9 lower zones
Talk about burying good news. The company discovered 170 ft of pay sands in addition to the 260 ft in the upper zones. In any other well just the discovery of 170ft of pay sands would be a big deal. The 6 new zones are "NEW" The word NEW means that it is not accounted for in any reserves.
About a title like:
"Mart Resources is delighted to announce that they discovered an additional 170ft of oil barring sands bringing the total for UMU9 to 430ft in 19 sands"
"Wade Cherwayko noted: Once again we proved how prolific the Umusadege field is and it represents a tremendous asset for our investors""
Instead we got " The well has now been cemented off as this hole section was never intended to be completed in the UMU9 well"
Translation for many people " the new zones are not commercially viable" We know that's not the case but it sure reads that way.
What should have been said is "UMU10 is getting ready for a Spuding in the next 2 to 4 weeks so we can exploit the new discovery"
In all of that the big news about the plan for RPS publishing reserves and an update at the same time got lost.
Production update.
Talk about not having a clue. Publishing 2 bad months of down time back to back was not a good idea. It is true but packaging is important. I mean context
About saying
" December down time was 11.5 days due to XXXX despite this our total down time for the quarter was only 2.22 days above our forecasted 15 days per quarter down time. Total field production for the quarter was 649,220 barrels bringing the total year for the field to a record 2.656,102 barrels vs 1,176,420 barrels in 2010.
Doesn't that look a bit better!!
Note that the 649K may even be higher since we may get "deficit oil" for the down days.
Save January for next week Shell PR and highlight the production days average of 11,754 BOPD
In conclusion:
Mart is a tremendous asset and will keep improving. Even with the turmoil in Nigeria we have some very good days ahead.
The Board needs to do a better job communicating to the stockholders. Isn't it part of their fiduciary duties to protect our asset or are they just protecting something that starts the same?
MJX. Next is a drill program on the very large formation. That will start in 2 weeks. results in April.
This is a good one!!
MJX. The stock will resume trading at 11:45 in Canada
Cheers
Cleverox, They wil need 2 more pads (yes 2) around umu9.
UMU9 is planned for March production.
UMU9 was a "reserve" well. UMU10 will be more of a production well but at the end of the day it is a bit early for the production guys to plan ahead.
Next will be umu12 again a rserve well.
Cheers
MMT, putting things in perspective
Granted this was a very bad way to present it in a PR and the fact that we have 430' of sands and 11,700 BOPD production got lost in the noise level.
I am not too happy about the communication but let's try to put things in perspective:
Mart estimated production for 2011 is around 1.8M barrels
Field production for 2011 is around 3M barrels
AGIP said they were loosing 11% on the pipeline. At least 3% is due to temperature change of the oil.
The actual loss is is 210,000 or 7% of total production. Not the 11%
60% of that is Mart's. 130,000 barrels
Expect some better news to come soon.
Even after the write down I expect Mart's revenue in Q1 2012 to be a bit better than Q4.
Cheers
Mart's Qua ibo field
I mentionned the Qua Ibo fiels in my status post and someone asked me a question about it on Stockhouse. Just in case somebody is interested here is the answer
Qua ibo status.
Qua Ibo is one of 3 marginal fields Mart contracted with indigenous companies back in 2004.
The other 2 fields were Ke Field and Umusadege.
Qua Ibo has 9.745 Mbbl of probable and 19.951 mbbl of Possible.
Qua Ibo was drilled in 1960 and Shell found oil in 2 zones. In September 2008 Mart drilled a hole and they hit some oil but a lot of water. The well was abandoned in January 2009.
http://www.martresources.com/wp-content/uploads/2010/06/25/20080910QuaIbo.pdf
In August 2009 Mart received default notices of insufficient funding for the Qua ibo field and the Ke field.
The issue was cured for Qua Ibo but Ke field rights were abandoned by Mart in November 2009.
Qua Ibo is very difficult to exploit. They have a river and a marsh right where they would like to drill. Much better to spend money on Umusadege.
This is what you can find about Qua Ibo on the last 51-101:
Qua Ibo Farm Out Area and Field
The Qua Ibo field is an existing multiple-horizon onshore hydrocarbon reservoir situated within the Qua Ibo farmout area. The Qua Ibo farmout area is situated in the Niger Delta within the boundaries of Oil Mining Lease No. OML 13 ("OML 13") and covers an area of approximately 1,921 gross acres. The area is characterized as having moderate oil and gas activities and a reasonable infrastructure of pipeline and related facilities. The Nigerian National Petroleum Company ("NNPC") and Shell Nigeria Petroleum Corporation ("SNPC") are the holders of OML 13.
The Qua Ibo field was declared a marginal field pursuant to the Nigerian Petroleum Amendment Act (No. 23) of 1996. The Qua Ibo farmout area containing the Qua Ibo field (the "Qua Ibo Farmout Area") has been allocated as to a 100% participating interest to Network Exploration and Production Company Limited ("Network") by the government of Nigeria in the 2003 marginal field allocation round. Network entered into a farmout agreement with NNPC and SNPC on April 27, 2004 (the "Qua Ibo Farmout Agreement"), which agreement sets out the terms and conditions, including financial terms and conditions of the farmout of the Qua Ibo farmout area to Network. Network is the operator and is the owner of all the rights and interests in the Qua Ibo farmout area by virtue of the Qua Ibo Farmout Agreement.
Mart entered into a finance and technical services agreement with Network on March 29, 2005 (the "Qua Ibo F&S Agreement"). Pursuant to the Qua Ibo F&S Agreement, Network and Mart agreed that Mart would provide technical services and financial resources to Network. Mart is entitled to receive, in consideration therefor, a share of future petroleum production from the Qua Ibo field, both before and after payout. C:\Documents and Settings\Mr X\Desktop\Mart Resources\Final_NI_51-101F1_Reserve Report_Mart_-_December_31__2010.DOC 12
As at December 31, 2010, Mart continued to hold a participating interest in the Qua Ibo field. Mart and Network are currently discussing a mutually acceptable arrangement for future operations on the Qua Ibo field. Possible arrangements include a continuation of operations under the terms of existing agreements, a new arrangement to farm-out part or all of Mart’s participating interest in the Qua Ibo field, or an agreement to transfer Mart’s participating interest in the Qua Ibo field to a third party or Network on terms to be negotiated.
The Qua Ibo field contains two known hydrocarbon reservoirs. Mart and Network completed drilling of the Qua Ibo 3 appraisal well in January 2009. While the well encountered a number of hydrocarbon zones, it was determined to be non-economic and was subsequently plugged and abandoned. Mart and Network have evaluated the results of the Qua Ibo 3 well, however no further drilling is currently scheduled on the Qua Ibo field.
Calgary Stampede Last year the AGM was the week before.
I'll stay in town this time. I think I will be able to afford the overpriced hotel.
Cheers
MMT. What can we expect next from Mart
First at bat is UMU9.
Looks like the company did a very good job on UMU9. This well is so important that the company should have and did take their time to drill it. The first part was drilled at 8,000 and the casing was done before they continued. My understanding is that they just did not do a normal casing but a very strong one. As they go deeper there is a lot of risks of high pressure and the last thing we want is for them to blow up the well. TD should be announced imminently. Monday sounds good to me, please.
It will, I hope, include some production numbers. My guess is around 12K BOPD. It takes time to move up to 15K. Pipelines are a bit tricky in load balancing since it is like a spider web down stream.
I stated before what it could mean if they found news zones with 9. It could be as many as 6 of them if you prorate it to the depth. The new zones may go back to where 6 is just like the upper zones and maybe as far as where 12 is planned. That's about 3 km away. I need to stop drooling on the reserves numbers.
We may be seating on a very very large deposit.
We should get a spud of UMU10 in about 2 weeks.
Next is the Shell deal. (2 weeks time frame IMO)
Now, one more time to set the pipeline expectations. My understanding is that the Shell deal is not a pipeline deal. It is a crude purchase agreement. I hope everybody got that one straight. The agreement is the first step to getting a pipeline.
To make it simple in order to be able to finance a pipeline you need production "check" and somebody to buy the crude on the other side "Shell deal, almost check" You also need a deal to connect to a larger pipeline (pumps, equipment etc.)
The 40 or so km pipeline would cost about $60 to $70M and be financed at 80% with 51% going to a partner and the local government (IMO) just like the AGIP pipeline. My understanding from a long time ago is that the cost would be eligible under the JV as a reimbursement with oil. What a deal!!
Time of construction would be short but with all the land and permit deals we are talking 14 months total time frame.
Next is the restricted cash reversal.
It's very large and complicated. It is taking a lot longer than I anticipated but it's coming. It's a big number. At least $20M in my forecast. No time estimate but soon.
Next during Q1 is Reserves
Q1 will be the time to work on the reserves assessment due first week of April. The 51-101 report will be for reserves as of December 31st 2011. It means that UMU9 will not be included but 7 and 8 will be included. However, if you read the rules you can do an update any time as long as it follows the same format. I would anticipate a release of the 51-101 in early April that would include a February or March update at the same time.
How big will the increase be? Beats me but expect a very big jump of the 3 digits percentage kind.
Next, Year end results.
We will get that at the end of Q1 and it will show a very large increase year over year. We all know that of course but the new to Mart investors do not.
One more item for Q1 will be the $6M payment from the insurance company. Nice chunk of change.
Of course the other one is the special dividend.
A quick calculation will tell you that a 10c divy is affordable at the end of Q1. It is a hot subject and I feel the company will deliver.
Forecasting Mart.
If the expectations of UMU9 prove to be true it is obvious that the company will need a much accelerated drilling program. New rigs should be in the forecast for mor drills around the UMU9 area, re drill around UMU6 and go for the formation where UMU12 is planned. One pre requisite is that Shell deal. The rigs are $3M or so a month to operate and you have to book them for a long period of time. You want to make sure that you have a good plan in place before you do that.
If all goes well this field could produce 30K to 35K by year end.
Anybody wants to put a valuation on that?
A wild card is the sell of Qua Ibo field with 29.6 Mb of probable and possible. Not sure what it is worth since it is hard to get to.
I also think that other corporate actions will be necessary but that's another discussion.
The company is moving to being a dividend paying company. They could afford 20c a year or more by the end of the year!!!!
GLTA it is going to be fun.
Oullins/Digi
MMT. Get ready to rock and roll in the next 2 weeks. It is better then you think. I will try to post a recap of expectations today.
Vancouver was great (except for the usual rain that is) So many targets.
Cheers
Mart update.
The company is running more logs in the 8,000 to 11,000 ft level of UMU9. It is going to take a few more days before we get the PR due to gov. approval. As you all know the Gov. has been a bit busy recently. This is a transformative well.
Board meeting at the end of January. Wonder if special divy is on the agenda.
Cormark keeps on adding new investors in Mart. 2M shares yesterday.
SSK,
Is that 10% dividend from the contest starting price of the share?
Case in point: our favorite, MMT may announce a 10C special dividend in February. At this time (.90c a share) it is more than 10%. You can bet that the stock will be above $1.00 when it is announced.
Also, is the dividend at time of announcement or at the time the company pays it?
Cheeers
MMT. I meant more news. Nothing for sure of course as approval cycle is rather long but very possible.
Hints:
Shell
Balance sheet
Cheers.
"without further news in the next few days"
Not so sure about that.
Cheers
Mart MMT.V Here it is:
December 22, 2011 Mart Resources, Inc.: Increase to Export Production Capacity for Umusadege Field CALGARY, ALBERTA--(Marketwire - Dec. 22, 2011) - Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart" or the "Company") and its co-venturers, Midwestern Oil and Gas Company Plc. (Operator of the Umusadege field) and SunTrust Oil Company Limited, are pleased to announce an increase to export pipeline capacity and a production update for the Umusadege field.
Export Capacity Agreement Update
An agreement has been reached with Nigerian Agip Oil Company ("NAOC"), the Nigerian operator of the export pipeline, to increase the combined export capacity for the Umusadege field and other fields in the area (collectively, the "Cluster") by 10,000 barrels of oil per day ("bopd"), bringing the total export capacity for the Cluster from its current level of 11,000 bopd to 21,000 bopd. The additional export capacity, which is expected to be implemented in several phases over the next four months, will be allocated among the Cluster members on a pro-rata basis based upon the production capacity of the fields in the Cluster and other factors.
The first phase of the export capacity increase, which was implemented this week, has resulted in Cluster export capacity increasing by approximately 4,000 bopd to 15,000 bopd. Since the implementation of the export capacity increase, a majority of increased Cluster export capacity has been allocated to the Umusadege field. Once the additional export capacity is fully implemented, Mart and its co-venturers anticipate that the Umusadege field will continue to be allocated a majority of the total export capacity available to the Cluster.
November Production Update
Crude oil deliveries into the export pipeline from the Umusadege field for the month of November 2011 averaged 7,994 bopd. The Umusadege field experienced production downtime of 1.62 days over this period due mainly to operational shutdowns and export facility capacity curtailments.
Additional information regarding Mart is available on the Company's website at www.martresources.com and under the Company's profile on SEDAR at www.sedar.com
JFF you are so good at math.
Now let's try 5% divi. and the share price would be?
GTLA
MMT dividend
Could be .10 as a special then move to quarterly of .05 at the end of 2012. They can afford it not breathing hard.