re: Ann: MOLOPO ANNOUNCES 2013 CAPITAL BUDGET... this is what I...

re: Ann: MOLOPO ANNOUNCES 2013 CAPITAL BUDGET... this is what I wrote on 24 Feb last.
it's turning out to be correct.

they really do seem to telegraph their intentions.

this is pretty much a voluntary liquidation, which should be good for s/h, because it seems like the assets are worth much more than the SP, so a capital return may well be the answer for s/h.

it's just a numbers game

cheers
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whilst I am longer a s/h in MPO, I have been a s/h for many, many years, and will be looking to re-enter when I get some money -so I still take a great deal of interest in MPO.

I have mentioned on several occasions here that I believe that it is now not an issue so much of mgt, domicile, cash etc - the big issue for s/h now is the quality and viability of the shale gas assets in NA.

S/h need to know IF those fields will be commercial. Are the flows of the current wells commercial, and are the shale gas fields going to produce what we want?
It really needs some expert, independent advice to assess the potential of the fields.
Because why throw more money at those fields if MPO has bought a dog?
And frankly s/h simply do not have that info.

And guess what the Board is doing now? Just that!
They have said in so many words that they are "reviewing a strategy of maximizing the return to shareholders.." and basically putting the wells on a care and maintenance basis.

IMHO, thats corporate-speak for reviewing the viability of the assets, perhaps selling them, preserving what cash remains, and flogging-off the assets.

"With the view to delivering a strategy of maximizing the return to shareholders from the Company’s current assets, the Board of Directors appointed Mr. Steven Cloutier as Chief Executive Officer and Managing Director of Molopo subsequent to the end of the Quarter, succeeding Mr. Tim Granger. In concert with a special Board committee, Mr. Cloutier is working to develop and implement a renewed approach to executing on the organization’s North American strategy, including a capital budget for 2013.

JANUARY OPERATIONAL UPDATE
No new drilling activity was undertaken through the month. Until Molopo has confirmed and communicated its 2013 budget, operational activities will be limited to maintaining existing wells with a view to optimizing production...."

BUDDY - you may get your wish - don't be surprised to see a cashing-out of assets, and then a capital return to shareholders.
Remember, as you correctly pointed out, the MD was executing the strategy approved by the Board. And that Board are the very people who won control in the coup - and they were able to do that because they were major shareholders - ergo they have a lot of skin in the game.
So when they see their shares trading at 32c, when on a asset market value those shares should be worth say 70c, then that will have focussed their minds on just how to recoup their paper losses.

Anyway, just my opinion, and its all speculation - but MPo seem to be telegraphing their strategy.

cheers