40 million barrels is a lot of money!
As you know the Blog has posted on Max before and predicted the recent spikes.
But for the life of me I can’t understand why investors have not jumped all over this company. The mind of investors is some times befuddled by day-trading highs and lows. Or maybe investors are reading the 24bopd while not realising that this test rate was conducted during the clean up period and is limited by STRICT Government Regulation. They can’t conduct a production test until they get the necessary approval! Invest for the right reasons. Take no notice of intraday trading once the oil has been found stick with the known facts!
Todays RNS confirms that the UYTAS discovery contains between 85/135 million barrels of oil with a known regional recovery rate ranging 20%/30%. This is a significant oil discovery there is a potential 40 million plus barrels of oil about to be given the green light for production. Max petroleum’s sp will double and probably treble during 2011. The penny begins to drop! They will rise!
“Additional intervals in the Triassic and Jurassic are currently being tested. A full update will be made as soon as the testing is complete, which is expected in the next several weeks.”
Max Petroleum are testing further intervals. Why? Once oil is discovered it significantly de-risks the asset as oil is known to migrate to other levels! They are looking to* re-drill/enter the Triassic/Jurassic. The COS risk has all but evaporated.
Watchlist this stock now!
A golden opportunity is staring you all in the face!
Hola!
Daniel
NB Missed the *RE out apologies. Typo etc
DAN the Main MAN!!!
Thanks again for this.
I am happy to see your opinion here. Your opinion makes us confident. So guys keep faith in MAX and enjoy the success there too.
Regards,
ABZ
Happy new year Dan
Been on my hols have a question on mxp.
Although my view is the same as yours on potential, the issue could be the finace ie dilution coming in exchange for debt i believe in March 2011.
whats your view on this ?
I think that the potential size of the net oip will certainly have a beneficial effect on institutional confidence. The debt as you say does play a negative part re’ company value,debt acts like an anchor on an sp. However this discovery can only help MXP re’ any dilution. Only an opinion and I am no fan of dilution but any debt for equity swap has just been made more attractive for the recipients.
Dan
Oilbug is correct, the financial state of Max is extremely unstable. It takes a big leap from having oil in the ground to getting it out…until the market knows how max intends to do this, the share price will peg to its range. Having said that – the recent news is comforting and gives a degree of stability to the sp.
Adverse reaction to a badly written rns fill your boots