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Real-Time news about Mmt Comp. (London Stock Exchange): 0 recent articles
|dukedosh: * Interesting news release from MW yesterday attempting to paper over the cracks! It'll be interesting to see what happens next with these two outfits. Might be worth a small punt at these levels as the share price held up well after the "merger" officially failed.
LAGOS, Nigeria, Aug. 27, 2015 /PRNewswire/ - Further to ongoing discussions between Midwestern Oil and Gas Company Limited ("Midwestern") and Mart Resources, Inc. ("Mart"), Midwestern has advised Mart that it is unable to conclude the financing required to consummate the contemplated transaction at the price agreed pursuant to the arrangement agreement, as amended, between Midwestern and Mart (the "Arrangement Agreement"). As a result, Mart has elected to terminate the Arrangement Agreement in accordance with its terms.
Midwestern believes that Mart has historically been a strong strategic partner in the development of the Umusadege field. Midwestern anticipates continuing to work with Mart under the defined terms of the existing risk services agreement between the parties (the "RSA"). Midwestern also believes that a potential alternative transaction, which brings together both companies, could provide the shareholders of both companies with additional value in the future.
Against the broader macro-environment for emerging market exploration and production companies, falling oil prices, the volatile Mart share price and the unique nature of Mart's interest in the Umusadege field by virtue of the RSA, it has not been possible for Midwestern to raise the financing in a manner that preserves value for its shareholders.
Midwestern will continue to explore strategic alternatives with Mart in addition to alternative funding sources. Midwestern, as the operator of the Umusadege field and Umugini Asset Management Company Limited (pipeline operator), will continue to remain focused on operating and further developing the Umusadege field and supporting the management team of Eroton Exploration and Production Company Limited in operating the recent OML 18 acquisition.|
|dukedosh: Mart Resources tipped to soar by broker
Mart Resources tipped to soar by broker
4:10 pm by Jamie NimmoBeacon Securities kicks off coverage on the stock with a 'buy' recommendation and target price of C$2.50
Nigerian oil and gas company Mart Resources (CVE:MMT) has all the pieces in place to see its share price soar, according to broker Beacon Securities.
It kicks off coverage of the stock with a 'buy' recommendation and target price of C$2.50 against the current market price of C$1.74.
"Trading at 3.4x 2014E CFPS and 0.7x our NAVPS with a 12% yield and multiple development, exploration and infrastructure catalysts in 2013, we believe there is significant upside from the current share price," said analyst Paul Nielsen.
The company's current growth plan is based on the development and exploration of its core asset, the Umusadege oil field in Nigeria.
Since 2007, Mart and its partners have drilled seven new wells, of which six are producing a combined total of 12,000-13,000 per day (gross).
"In our view, Mart's established base production makes it an attractive investment candidate since it is already generating strong cash flow to fund its Umusadege exploration and development program," Nielsen added.|
|riggerbeautz: Chen Lin uber bullish as ever.
"TER: In June you mentioned that your biggest holding, at that point was Mart Resources Inc. (MMT:TSX.V). Is that still the case? What's been going on with the company since then?
CL: That's still the case. I'm holding a lot of Mart Resources. During the summer when the market turned south, I was still holding the stock because I really believe in this project. I heard the company was making presentations at conferences where it was talking about the potential for very large dividend payouts, starting next year. Right now it's trading about one times after-tax cash flow, according to the management. So, it can basically pay out any dividend it wants. It will probably start low-maybe $0.05 or $0.10. A $0.10 dividend is almost a 20% yield at the current share price. Then it will start going higher because it is going to accumulate so much cash from its oil drilling program. Every well in this year's drilling program is a successful well-every well! I think two are around 10,000 bpd. One is 6,0007,000 bpd. In North America, if you have 600 or 700 barrels, it's a very good well. These are much bigger. So, Mart is just waiting to reach a deal with the pipeline company so it can start pumping more oil out. It's supposed to be very soon. Once it reaches that stage, it will be cash-flowing at one times market cap. That will be a huge catalyst. Plus, the dividend payout will be another big catalyst. I'm looking for a much higher stock price.
TER: This is Umusadege Field in Nigeria you're talking about, is that right?
CL: Right. Mart just found an amazing amount of oil. Its well production in the past 22 ½ years has shown no decline. In North America, after a month or two it could drop in half, like in the Bakken. The steady production means the company is sitting on a much larger pool than people can imagine. The next catalyst will be its reserve calculation. With all the production it's had and all the successful drilling, this year's reserve will be much higher than last year's. With last year's reserve, if I remember correctly, the 3P net asset value (NAV) of 2010 is way over $1.00 per share. This year it could easily double that, maybe even more. Meanwhile the stock is still at $0.64. That tells you how much upside it has just from the NAV. Then you can look at it from cash-flow side and the dividend side and you can see that the stock is very, very undervalued.
TER: So, what's the market cap for the company at this point?
CL: I think it's about $200 million (M) and they will probably cash-flow more than $200M.
TER: Boy, that is a real bargain, isn't it?
CL: I've been holding this as my largest position because I feel so compelled. It's been undervalued for a long time. Partly it's because the market was very bad this year. Nobody really paid attention. In the meantime, the company has had one drilling success after another. Not just successful but very successful. The market has shown no response to that. But the company can immediately sell the oil and get into cash-flow. So, if the market doesn't respond now, it will respond later. That's why I was holding it as my largest position throughout the turmoil this year.
TER: Do you think is the project's location in Nigeria might make some investors wary?
CL: That could be the case. The Nigeria situation is a little bit volatile. But, again, this is an OPEC nation and Mart exports through its standard pipeline. It has some interruptions from time to time, but management has already factored that into its cash-flow calculations.
TER: What do you think the chances are that the company will get bought out by a major with this kind of production?
CL: It could be. There was another Nigerian company that was bought out by a Chinese company for $7 billion (B) last year. Mart will likely be producing at that level in a year or so. Right now it only has a $200M market cap. So, you can see the upside is huge. Furthermore, the company does not need to come to the market to raise money. That's why it's in an ideal situation and why I like it."
|scrambled eggmann: At this rate we will have to wait for a dividend or share buy back to get any movement in the share price.|
|scrambled eggmann: I think we are due a decent leg up to the $1 range soon enough.
If they increase their net production to 7500 BOPD with this new well (as expected) - then that is pre-tax cashflow of $273m for the year (at $100 a barrel) (and our MCap is only $231m). Mart is finally capitalizing on the high oil prices but many explorers with no oil production have larger MCaps. The workovers on UMU 1 and 5 should then take it upto around 9000/10000 BOPD net.
Hopefully we get a decent reserves boost too, some SH rampers have hinted that it could be somwhere between double or triple the existing figures.
So the share price is already at a very low multiple and should be three times higher at least (based on cashflow), and we can expect at least 12,000 - 15,000 BOPD with the additional wells UMU 8, 10 and 11 if Wade gets his finger out (and it would help to get another rig and new drill pad constructed).
Let's hope it all goes to plan.|
|scrambled eggmann: Back to the pre 14K BOPD news release price. Share price had hope value built in but that hope is close to be realized. I think potential investors are put off by Nigeria, but the oil is what counts and when it is sold at a premium (and after the partner taking 50%) Mart is still worth double of 70c once the next two wells get drilled.
Another 12 months wait then, and hopefully Wade gets some acceleration on his business plan. 2010 has been a transforming year, but they only drilled one well (a good one at that).|
|polyps: If UMU6 is has oil shows what net pay are you expecting from the zone ?30ft or more?
If the well proves up to 4000bopd where do you think the share price will be with future drilling and debt removed by Q12011|
|scrambled eggmann: I rechecked the presentation and if Stockhouse are right we could be hitting Zone III, IV and V right now as they are shallower. They also state that they are hitting the zones as per their geo model, which again is good, and TD by Sunday. yes Sunday! Not so sure myself but that is what they say and they have a better line with the company.
Zone VI is the first of the real interesting ones as that is marked as a future producer for the UMU 1 recompletion. So possibly have come to it now. The Rig is pretty powerful and 800-1000 Ft a day is the supposed rate.
I am just keeping my hopes down and hope the drill bit does the work rather than the share price getting way ahead of itself with the $3 tomorrow rampers!
I don't dare to dream yet.|
|scrambled eggmann: Nigerian time not helping the share price. I think if Joelou's post about zero payables is true then nothing to do except wait.
Zero net debt and 2K net production is fine and once they get this drilling/completion program finished they should at least triple their net production as well as significantly increasing their reserves.
Get those rigs set up and started Wade! Then we look forward to some regular newsflow.|
|scrambled eggmann: Rigger - I have seen the theories, but not sure if I agree.
They have till this month to exercise the options and even if the share price was 60 cents, I don't think they would exercise as they need to pay the cash to buy the warrants. Do they want more Mart at 55 cents?|
Mmt Comp. share price data is direct from the London Stock Exchange