Replies to post #4161 on MediaTechnics Corp (MEDT)

[Bramabill]

IMHO if state of Montana claims are true, which at this point seems obvious, statements made by MEDT management appear mis leading. Could be interpreted as fraud. Esp since probably nothing has happened to the wells since George Bush senior was president, and the top hit was "Every rose has its thorn" from Poison. lol

[sensible]

Well, if you read your friend wantsum2's post, you will note "George Hudak reports that they have 2 oil wells that are shut in (not producing) and 1 gas well which is also shut in (not producing)."

Shut in means not producing.

The PR says "proved undeveloped reserves"

SEC Regulation S-X, Rule 4-10 says in relevant part.....

Proved undeveloped reserves. Proved undeveloped oil and gas reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. ... Under no circumstances should estimates for proved undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir.

If they have spent money to recomplete the wells and have concluded that work, and they produced 2 whole truckloads of oil, then these wells may be, in point of fact, proved reserves, but they have obviously taken the conservative approach. They said something about advanced pumping equipment in their first PR, maybe they consider this to be a, "relatively major expenditure?"

So much for fraud.

Also, as for the other claim you made, no where in any PR is anything said about changing the ownership or operational status of the wells. It says that MEDT is buying the shares of Forward and that current management will stay in place. I called Montana too and they only care if the ownership of the WELLS changes hands.