I give Mr. Maxwell credit not to pay high pocket money for himself as member of the MPO board and as a top 20 shareholder.
I still think to try to produce oil favoured to gas is a good strategy because today you earn faster and better money with oil in comparison with gas.
In the meantime I think it was a good move to say bye-bye to NSW CBM because NSW politicians destroy this industry there. (I suffer from MEL losses)
I think Wolfcamp was a good idea. There is oil and politician, farmers (landowners) etc. support unconventional oil and gas production,oilfield service and contractors are much cheaper than anywhere else, the Mecca of oilfield know how is Houston etc.
Not the optimum is the not so high as expected oil production rate from our texas oil wells. I still do not know: problems with the completion? problems with the hydraulic fracturing recipe? we didn`t get the sweet spots from the geologist? At least I am already happy we produce some oil there and I still think there is a good chance to earn some money from these wells one day.
Mr. Max Beck is not an oil and gas person but as a real estate guy he understands the advantage of location. Location, location and you end up in Texas trying to produce oil with MPO and that is good strategy. So thumb up for this point (Although I bet that it is a good idea to invest in to Australian oil and gas companies too)
Catastrophic: the drop of the MPO share price
Still I am in the plus because I bought in the very early days but it hurts I didn`t sell when we have seen 2 $. The 0,2x $ are not ok but I hope MPO has got the potential to go up again
As an O&G company MPO is doomed to drill, drill, drill till we can produce enough oil and gas to earn money.
MPO Price at posting:
28.5¢ Sentiment: None Disclosure: Not Held
