Q: Today Mart resources announced a 10 cent dividend to holders on July 23rd and the intent to pay a 5 cent quarterly dividend. Share price at the start of the day was $1.05.
The dividend is on top of their proven reserve increase of approx 40% (16% in dec 11 then just recently another 24%) with no decline in production. This gave them a 10% discount before taxes value of almost 1 billion dollars.
Current shipping of approx 12000bpd. Wells that flow in excess of 50000bpd.
The announcement of a crude purchase agreement with Shell so they can get the pipeline in and expand capacity in order to take advantage of their massive flow rates.
Fantastic tax breaks until they're into 2014, then still excellent taxes to encourage greater field development.
Very low cost production which is producing an oil that sells at a marked premium.
And ANOTHER well that is supposed to soon be announced which is drilling to test brand NEW oil bearing sands which were found under a gas layer which is itself below the currently producing oil bearing sands. Never mind if they can get the gas condensate to market.
Do you think MMT's dividend announcement is the right direction? I like it because they have oil, it's the expanded capacity they need which is coming. So it's a bit of a waiting game. As long as the cash flow remains enormous why not pay a dividend from 12000bpd until they reach 40000, 50000, 60000bpd in a new pipeline. It sure takes some of the edge off for me as an investor from Mart operating in Nigeria.
The dividend is on top of their proven reserve increase of approx 40% (16% in dec 11 then just recently another 24%) with no decline in production. This gave them a 10% discount before taxes value of almost 1 billion dollars.
Current shipping of approx 12000bpd. Wells that flow in excess of 50000bpd.
The announcement of a crude purchase agreement with Shell so they can get the pipeline in and expand capacity in order to take advantage of their massive flow rates.
Fantastic tax breaks until they're into 2014, then still excellent taxes to encourage greater field development.
Very low cost production which is producing an oil that sells at a marked premium.
And ANOTHER well that is supposed to soon be announced which is drilling to test brand NEW oil bearing sands which were found under a gas layer which is itself below the currently producing oil bearing sands. Never mind if they can get the gas condensate to market.
Do you think MMT's dividend announcement is the right direction? I like it because they have oil, it's the expanded capacity they need which is coming. So it's a bit of a waiting game. As long as the cash flow remains enormous why not pay a dividend from 12000bpd until they reach 40000, 50000, 60000bpd in a new pipeline. It sure takes some of the edge off for me as an investor from Mart operating in Nigeria.
