Shares in Max Petroleum

cloud_dog

thewinkshow wrote: »

Hi cloud, thanks for the link, I have read through the report, and most of it is japanese to me, but from a basic point of view it would seem there is quite a lot going on at mxp from now until June 2011

has anyone gone a breakdown of what they will be doing between now and June? looks like testing the well, some work over rig, getting more funding, what is a farm in partner? then they want to drill to deeper depths , i assume there is more oil at the deeper depths.

if there is oil in the well they are testing are renasise capital saying it will go to 35p?

You really need to investigate to find out stuff otherwise you will find yourself being finacially thrashed one day.

The farm in partner deal and the deep drilling is linked. The shallow drilling they are doing atm will (hopefully) provide better reserve numbers which will benefit the balance sheet and cash flow. Again, positives when talking farm in deal. They are approx half way through the shallow drills (6 ish to go) and these take us to June 2011.

By then / before then we would really like MXP to have made decisions about the deeps, i.e. farm in deal or go it alone; if go it alone how will they fund it, i.e. more shares to Mac Bank or larger debt facility etc, etc.

I think their risked 35p is based on the results of the shallows.

GoMad on iii did a pretty thorough breakdown recently.

thewinkshow

hello, thanks for the link to GOMADS breakdown, I have decided I am going to put all 3k into Max tomorrow, I think there is good potential if some of the news is true.

googler

thewinkshow wrote: »

hello, thanks for the link to GOMADS breakdown, I have decided I am going to put all 3k into Max tomorrow, I think there is good potential if some of the news is true.

'Tomorrow' is now today, and at 09.30 it's down almost 2% on this morning's starting price....

Are you clear on what your strategy is? Buy and sell quickly for short-term gains, or buy and hold for long-term growth?

Sounds like your friend is in the first category; do you want to do the same? If so, you need to plug into news feeds and share price info that will give you info quicker than your friend and this forum...

cloud_dog

googler wrote: »

'Tomorrow' is now today, and at 09.30 it's down almost 2% on this morning's starting price....

A few percent change on MXP + and - in one day is not abnormal for MXP. Its an AIM traded stock with all the joys that go with it.

I would reiterate if you are not comfortable with seeing a drop of 20%+ then dont do it.

CashStrappedTeen89

cloud_dog wrote: »

The OP was just looking at the SP and not looking in to the detail.

I don't follow XEL but from what I have read they have signed a letter of intent so not quite set in stone yet. Erveryone's waiting on the flow rates.

XEL is where MXP want to be by the end of next year, i.e. drilling a successful deep well.

Iirc they have booked the production rig, they've definately entered into some form of agreement as they have to pay for the rig regardless of if they use it.
I could be wrong, im watching a few at the moment, MXP being one of them but these are all potential targets for the profit from XEL.

cloud_dog

CashStrappedTeen89 wrote: »

Iirc they have booked the production rig, they've definately entered into some form of agreement as they have to pay for the rig regardless of if they use it.
I could be wrong, im watching a few at the moment, MXP being one of them but these are all potential targets for the profit from XEL.

They've entered in to a binding LoI, which has a $2.5m termination clause. They expect to enter in to an agreement by 15th December.

Again, everyone waiting on flow rates, although they obviously expect it to be commercial.

sabretoothtigger

MiM wrote: »

It's tempting to look for "groundfloor" possibilities like MAX and RRL but ideally you really need to combine these with safer bets, unless you're happy to just gamble the lot.

True but RRL is a company with current oil and gas production. I think they would need more money to explore much further but they are not a one shot deal hence I think they are less risky.

I cant really go for a company with no history or current business, its no wonder they from zero to hero when they find oil. How does one judge the worth of that, Im not a geologist

uptomyeyeballs

cloud_dog wrote: »

They've entered in to a binding LoI, which has a $2.5m termination clause. They expect to enter in to an agreement by 15th December.

Again, everyone waiting on flow rates, although they obviously expect it to be commercial.

The deposit that Xcite are testing is high purity and is very large. There's also a strong rumour that an offer may be made for the company if those tests are successful. So, shares in Xcite could be worth a lot more if that happens.

cloud_dog

uptomyeyeballs wrote: »

The deposit that Xcite are testing is high purity and is very large. There's also a strong rumour that an offer may be made for the company if those tests are successful. So, shares in Xcite could be worth a lot more if that happens.

As I've mentioned before I'm not in XEL but, you are correct on the possibilities. Although there were a lot of 'ifs' in your statement.

uptomyeyeballs

cloud_dog wrote: »

As I've mentioned before I'm not in XEL but, you are correct on the possibilities. Although there were a lot of 'ifs' in your statement.

That's because nothing is certain in AIM oil company investing.