MMEX Resources Corp (MMEX)

[jmjjw]

MMEX has no reason to build the 10K bpd rudimentary topping unit.

No entity, syndicate, JV, or otherwise has the lack of insight to finance $47-million (really more) to build it, and another $45-million to operate it through its first full-loss year, at which point it would be shut down at a loss.

The refining sector knows that it is not possible to operate a small-scale, rudimentary crude topping unit at a profit, or in isolation. That is established industry fact and knowledge.

MMEX’s proposed unit lacks even the most basic capability, and could not produce any directly marketable product.

There really is no purpose in MMEX building a project that can’t produce marketable product, would be guaranteed to operate at a loss, along with a host of other problems MMEX created for itself through lack of sector knowledge and competence. The $3/bbl hit on feedstock, and the $3/bbl hit on intermediate stream product alone (and $3/bbl is generous - for a small deal on spot transport, it is more likely $6/bbl) kills it.

Water is the least of MMEX’s problem.

I'm wondering, if mmex can at least try to start out with the 10000 Barrel a day unit? You know the one that they were not going to build. I wonder if they could at least have enough water to run it. Beginning to sound like the tide is turning and the 10,000 Barrel a day unit will be running. I'm sure that Jack has contingencies for the hundred thousand Barrel a day unit and it's water needs. It's just a though