No one is being aggressive Anatol - we are all sharing - your...

No one is being aggressive Anatol - we are all sharing - your exact words were

"...Therefore it needs to be further investigated by the shareholders before saying it's crap and downramping posts are not needed here for discussion..." My bold.

Again you don't decide what is needed here for discussion was my point.



So lets get back to discussion then and say Peeler Ranch as the example. MHR paid $1,246/acre for this piece in Aug 2012 and the acquired acreage gives the Company approximately 10 additional net drilling locations in the Pearsall Shale and 10 - 13 additional net drilling locations in the EFS.

In MHR Q4/2012 report:

"Peeler Ranch 3H - This well is located in Atascosa County, Texas. MHR drilled and cased this well to a measured depth of 14,966 feet (horizontal lateral length of 5,740 feet), fraced with 20 stages and placed on production December 12, 2012. The 24 hour flowing initial production rate was 616 Boepd on a 18/64" choke with 900 psi FCP. Magnum Hunter operates this well and owns a 50% working interest."

{and I hate the 24IP but its all they gave - again contrast that to the 30D IP given earlier. This is and not on someone elses acres! Anyway its the EUR and the type curve for decline that matters coupled with pricing to construct the IRR - more on that later. }

THOSE ARE FACTS.

http://www.magnumhunterresources.com/pressreleases.html



Your citation of your post 27/07/2011 is nice history but completely OUT OF CONTEXT. Firstly it was long ago, Secondly most (all?) of those acres are in different shales and for the EFS in the true sweet spot. Not a useful comparison (unless you're trying to upramp - that is a cheap shot to your cheap shot a me re downramp. NEVER HAVE I BEEN SHORT ANY STOCK AT ANY TIME.)


What is happening now though is....

"...it does appear there is a wide big-ask spread given the dearth of Eagle Ford deals since mid-2012..." CSFB Feb'13

The EFS is covered pages 32-36 (plus a whole lot of other locations. MHR is absent - look at Penn Virgina (PVA) who acquired most of the MHR acreage).

https://doc.research-and-analytics.csfb.com/docView?language=ENG&source=emfromsendlink&format=PDF&document_id=1008975251&extdocid=1008975251_1_eng_pdf&serialid=Sx9ODyo7QouR1MK5Y0eGR7bNzwN%2b9iQhOkdYIf6BKIk%3d


So lets take a closer look at PVA - what they bought from MHR and what they have done since....

MHR sold production from 49 wells on 19,000 net acres to PVA for $401M ($361M cash and $40MPVA stock) which equates to an overall multiple of approx $21K/acre.

Current production was approx 3,200 BOEPD (so a multiple of $125K per flowing BOEPD).

At first look some might think NSE got a steal at the $5,300/acre headline number (BTW I get closer to $6,561 when all performance payments included) or the equivalent production multiple of $85,000 per flowing BOE


PVA has since added over 16,000 net acres contiguous to its acquired position via low-cost bolt-on leasing, JVs and asset swaps with significant acreage at a cost of about $1,600/acre.!


Like saying goes "Oil's aint Oils" and likewise for acres.


Now this is the important part - lifted straight from PVA and to which we really need to see what NSE are putting up as the "Performance Success Shares" that are tied to EUR and IRR.

So when you talk to "Phil (MD)" ask him some hard questions:

1. What is the EUR for the wells
2. What is the IRR and what basis - NyMEX Futures Strip?
3. What % is OIL only not including NGLs
4. How will glut of NGLs affect the return - any possibility of Ethane rejection?
5. What premium/discount to WTI (will we get LLS pricing?)
6. Why do this now - and diversification and risk mitigation are not really answers as the requirement to take on significant debt to comply with the CDP puts the company at risk to Oil/NGL/Gas pricing and well performance to generate the cash flow required (plus all the other loan covenants).


Not short, not even contemplating being short. Just holding (in somewhat of disbelief) and discussing.