Nearly 12 months ago, the company announced the appointment of a new ceo who would oversee a "Value Maximisation Process" Their announcement at the time included this:
"The last twelve months has seen our understanding of the Company’s upstream assets significantly improved through drilling and technical evaluation, and the Board believes strongly in the value of these assets, particularly the Wolfcamp in Texas.
The Molopo share price is, however, not reflective of that value. (40 cents at the time) The Board has engaged Steven Cloutier, to deliver a strategy of maximising the return to shareholders from the Company’s current assets which 31 December 2012 included approximately US$70 million cash and 950 boep/d production ; 26,000 acres in West Texas in the prospective Wolfcamp formation ; 47,000 acres in Saskatchewan ; 900,000 acres in South African onshore gas projects with a production right and 1.4 million acres in Quebec prospective for shale gas . "
End of Quote What do we have 12 months later?
$60 million cash 250 boepd production, 24000 acres in West Texas, no acres in Saskatchewan and no acres in South Africa. So in 12 months we have lost $7 million in cash, 700 boepd, 47000 acres in Canada and 900,000 acres with a production license in South Africa.
We have also lost 23 cents per share.
Nice work.
Now watch the board give Steve a whole lot of Performance Shares Right!
MPO Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
