So after two deals are made to cede control (now non-op) and considerable interest on the duvernay rights + a SPP, mke goes from a .42c to .32c 12 mth target according to Carmichael. Step backwards to some degree obviously. not to confident this will be above 11c for the majority of 2013. Positive report overall but looks like Mako could have done a little better on the interest portion in the deals they made. Be nice if they could express the same urgency towards producing from Rock Creek but seems like all focus is on Duvernay entirely now with the restructure upcoming. Lets just go conservative with 10 wells finally producing and payed out by end of 2014 at 10 - 15% interest on 900 bbls per well... We are only really looking at 900 to 1350 boepd by that point ... On an undetermined product mix because we don't know how many of these wells will be in the oil window. I'd average that in at about $80 bbl by then. That is not even marginally close to what they envisioned in their 5 year plan.
Gave too much up in my opinion. This one is about patience. Still holding.
Glta
MKE Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
