MHL - Monitor Energy

[stinger_au]

Well the company does not seem to be dead - which is what everyone that was selling seems to think. I hope it can make it back up to the 5c mark some time in the next few months.

 

[rapture2002ca]

Well the company does not seem to be dead - which is what everyone that was selling seems to think. I hope it can make it back up to the 5c mark some time in the next few months.

I don't think the company is anywhere near dead. I mustered up a measly $1000.00 today and got 35,000 more units at 2.9c. I reckon they are a steal at the moment.

I think in the next few months it will pick up again as MHL are also on the uranium bandwagon and that in itself is looking promising.

Cheer up, I've lost $19k in 3 days on both MHL and RAU but I'm looking at these for the long term.

 

[mobcat]

Gday RT you missed the boat on the AGM it was yesterday mate LOL

Hey i will post some words from HC Re The meeting take it as you please as it did come from HC

From Simonmc


Overall imrpession - the directors seemed to be genuinely thrilled at the outcome of the JV. Jon reckons he has been fielding congratulatory calls from peers all week. basically if they did not get a free carried deal they would be nothing.

random snaps..

-Gravity survey complete and being interpretted. Anno in the next few months. Lots of interesting looking target zones for optimising seismic surveys.

-MG sold cos he needed the money. He has been on a part time salary and working full time and also paid for quite a few of his own expenses. Pointedf out that he does not need to disclose any further

-Possibiltiy of using CIG's rig

- sp overbought on trader activity and similary oversold atm

- Broker spec reccomendation reports in the pipeline

- U drilling being held up by Leopard. MHL not happy and pushing hard to move on this

- Exploation manager speaks Russian and can 'walk on water' according to Jon

- Medina stuff posted by someone (Brantly?) legit. They are really keen about the MHL story and are Medinas largest JV. Also bring knowledge and experience to the table

 

[stinger_au]

I don't think the company is anywhere near dead. I mustered up a measly $1000.00 today and got 35,000 more units at 2.9c. I reckon they are a steal at the moment.

I think in the next few months it will pick up again as MHL are also on the uranium bandwagon and that in itself is looking promising.

Cheer up, I've lost $19k in 3 days on both MHL and RAU but I'm looking at these for the long term.

Yeah the price is very nice atm - though i have no money to put on it :*(. If i had put my original 9k at the current price i could of gotten 300k worth of shares but i only have 250k. I guess timing is everything on the stock market.

 

[catmando]

Re: MHL - Missunderstood


This is great info - MD letter copied from another forum in response to a shareholder's email -

Seems there is a lack of understanding in the market about the value of the deal on the remote Kyrgyzstan acreage. Please read the attached explanatory note which will clear up these issues. A run today was preceded by an unsubstantiated rise during the last tow weeks on NO news - I guess there is some larger investor that wanted to see the rise (to 6 cents) only to take it down.
We still have the assets, the announcement has been endorsed by many oil & gas experienced brokers....

Dear Shareholder
Thank you for your email.
While the company is concerned with the market reaction to the
announcement, the facts appear to be misunderstood.
Given the fact that the projects in the Kyrgyz Republic are frontier in nature,
exploration and possible development is high risk and also carry potentially
high development costs. While the company is enthusiastic about the potential
for the acreage, there remains a high risk profile. By bringing in funding, it
allows the company to continue to aggressively explore the projects without the
impediment of limited capital.
What the HoA means is that the projects will be explored aggressively without
contribution of funding by the company. This is carried through to production
of oil. You will note that the HoA isolates the on ground component of
exploration. This means that there is a minimum commitment to exploration via
seismic and drilling, without being diluted by other costs, some of which can be
extremely high. Given the fact that there is unprecedented demand for seismic
survey teams and drill rigs globally, there may be a need to mobilize this
equipment from countries remote to the Kyrgyz Republic. If this is the case, it
could potentially cost millions of dollars, dramatically reducing the amount of
work in the field, which is the whole point of exploration By cocooning the on
ground component and with the JV partner responsible for costs associated
with mobilization, demobilization, as well as operating and administration costs
(plus a sliding operator抯 fee), maximum benefit is delivered to the projects
themselves, not eroded in incidental costs.
While some investors feel that 15% free carried interest in the projects is not
significant, may I give you a couple of examples.
If there is a significant oil discovery made, development costs could be extreme,
with construction of pipelines, possibly as far away as China, adding massive
capital costs. MHL is protected from these costs via its free carry.
An example of a 85/15 regime is he oil and gas industry in Indonesia which is
amongst the largest in South East Asia. Under government regulations, foreign
companies are only entitled to own 15% of oil production, with the remainder
owned by the Indonesian government. Costs and taxes are in the 15%. Despite
this, many of the largest oil companies in the world successfully and very
profitably produce oil in Indonesia, despite having to carry all exploration and
development costs through to production.
Monitor Energy Ltd, has a very experienced technical and management team
that is focussed on doing smart business, not business as usual and as such will
conserve its capital for new projects, in line with our capabilities and capacity,
with near(er) term production, some of which are under review at present.
Sincerely yours,
Jon W Roestenburg B.Sc., GBQ, MLM

 

[Risky Trader]

Now that is what I call a decent explaination...

WHY don't they just come out with that at the 1st place instead of pissing off all the investor and create confusion.

HOWEVER that also mean, it will be long long time before anything comes out of the project. IF any at all.

I guess what he meant also is SIT TIDE and WAIT.. it's VERY LONG TERM

 

[nioka]

The explaination on the 15% retained equity is probably a good one. However the explaination of the Directors reason for selling is not and still needs further investigation. I have submitted a complaint to the ASX and will wait for their reply. I will not hold my breath while waiting. I'm still happy to hold but it may take time for there to be a good gain. At least the sell off seems to have slowed a little with sellers at 32 at the moment.

 

[billgeld]

All I can say is if he buys back in now then his one dodgy bastard.

If he really did need the money then fair enough.

I am still holding and will not selling cause of this.

Good luck all.

 

[Gspot]

To see Mhl turn from darling to disaster has made me lose sleep for the first time. Hearing what the MD had to say, I've decided to put this one away for a while. Hopefully we'll see 6c again in 2008.
Must learn from this, don't get too greedy. However the way it fell was crazy, considering they got a JV partner. If only you had a crystal ball for the day ahead.

 

[Dukey]

Seems to be much better support from buyers coming thru today and up .5c so far - A nice change! Maybe the message that the JV announcement is actually quite good is getting thru to the market!

 

[KIWIKARLOS]

hahahahaha yeah either that or Forum members have read the "letter" and decided that things aren't so bad I think we would be surprised to know the impact that this and other forums have on market moves. It gives a good idea on sentiment and most other forums are hosted by trading firms which do monitor posts.

 

[stinger_au]

hahahahaha yeah either that or Forum members have read the "letter" and decided that things aren't so bad I think we would be surprised to know the impact that this and other forums have on market moves. It gives a good idea on sentiment and most other forums are hosted by trading firms which do monitor posts.

Yeah, if you noticed on the day that the announcement came out the price jumped up for a bit, then it dived down. So maybe everyones first thoughts were "hey this is good!" then they got brain washed or something lol.

 

[adobee]

hahahahaha yeah either that or Forum members have read the "letter" and decided that things aren't so bad I think we would be surprised to know the impact that this and other forums have on market moves. It gives a good idea on sentiment and most other forums are hosted by trading firms which do monitor posts.

I think watching AAR will give you good feedback on this thought.. having had two of the highly regarded posters on this site hitting up alot of infomation and potential targets over the weekend.. AAR has hung round 9c for a while.. If all of a sudden there is frenzied buying and it goes back up to 10c no annoucement I would consider the forums to be a large factor in the new interest... Well we will wait and see..

 

[Bowey]

I would agree with adobee, with these small caps having under 50-100 trades a day, you'd almost be certain that forum readers have some kind of impact. Case in point for some of the darling stocks here which were unknown to the broader market until they were mentioned in these forums, shot up and crashed back down to earth - someone made a nice profit out of this!

Although the information here is great and valuations are useful to study, you have to be careful to make sure you don't buy during the hype and get stuck in a holding pattern.

 

[stinger_au]

I would agree with adobee, with these small caps having under 50-100 trades a day, you'd almost be certain that forum readers have some kind of impact. Case in point for some of the darling stocks here which were unknown to the broader market until they were mentioned in these forums, shot up and crashed back down to earth - someone made a nice profit out of this!

Although the information here is great and valuations are useful to study, you have to be careful to make sure you don't buy during the hype and get stuck in a holding pattern.

Yeah good advice mate - now go back in time and give it to me when MHL was at 6 cents . Though i would of probable said - just a little more.

 

[Bowey]

Yep, I wish I could go back in time and sell my JMS and RAU - painful to watch!

However lucky I got out of MHL around at 4.9c, triggered my stop loss and I bit the bullet and got out.

I'm not too knowledgeable about the mining industry, but it seems you can choose almost any stock and make a good case for it's future, based on what you think they will find. With so many mining stocks I would hazard to guess the only difference between them in the short term is the publicity they receive and broker analysis published.

This is a great forum and I do like the opinions and thorough analysis that goes into them, I am trying to learn to make sense of mining announcements, seems a bit wishy washy when you read some statements from Directors, but hopefully I can get up to speed and contribute a bit to this forum in future.

cheers

 

[adobee]

Re: MHL - Missunderstood

This is great info - MD letter copied from another forum in response to a shareholder's email -

Seems there is a lack of understanding in the market about the value of the deal on the remote Kyrgyzstan acreage. Please read the attached explanatory note which will clear up these issues. A run today was preceded by an unsubstantiated rise during the last tow weeks on NO news - I guess there is some larger investor that wanted to see the rise (to 6 cents) only to take it down.
We still have the assets, the announcement has been endorsed by many oil & gas experienced brokers....

Dear Shareholder
Thank you for your email.
While the company is concerned with the market reaction to the
announcement, the facts appear to be misunderstood.
Given the fact that the projects in the Kyrgyz Republic are frontier in nature,
exploration and possible development is high risk and also carry potentially
high development costs. While the company is enthusiastic about the potential
for the acreage, there remains a high risk profile. By bringing in funding, it
allows the company to continue to aggressively explore the projects without the
impediment of limited capital.
What the HoA means is that the projects will be explored aggressively without
contribution of funding by the company. This is carried through to production
of oil. You will note that the HoA isolates the on ground component of
exploration. This means that there is a minimum commitment to exploration via
seismic and drilling, without being diluted by other costs, some of which can be
extremely high. Given the fact that there is unprecedented demand for seismic
survey teams and drill rigs globally, there may be a need to mobilize this
equipment from countries remote to the Kyrgyz Republic. If this is the case, it
could potentially cost millions of dollars, dramatically reducing the amount of
work in the field, which is the whole point of exploration By cocooning the on
ground component and with the JV partner responsible for costs associated
with mobilization, demobilization, as well as operating and administration costs
(plus a sliding operator抯 fee), maximum benefit is delivered to the projects
themselves, not eroded in incidental costs.
While some investors feel that 15% free carried interest in the projects is not
significant, may I give you a couple of examples.
If there is a significant oil discovery made, development costs could be extreme,
with construction of pipelines, possibly as far away as China, adding massive
capital costs. MHL is protected from these costs via its free carry.
An example of a 85/15 regime is he oil and gas industry in Indonesia which is
amongst the largest in South East Asia. Under government regulations, foreign
companies are only entitled to own 15% of oil production, with the remainder
owned by the Indonesian government. Costs and taxes are in the 15%. Despite
this, many of the largest oil companies in the world successfully and very
profitably produce oil in Indonesia, despite having to carry all exploration and
development costs through to production.
Monitor Energy Ltd, has a very experienced technical and management team
that is focussed on doing smart business, not business as usual and as such will
conserve its capital for new projects, in line with our capabilities and capacity,
with near(er) term production, some of which are under review at present.
Sincerely yours,
Jon W Roestenburg B.Sc., GBQ, MLM

I think this sound okay .. I originally bought at 3c so I am not to concerned about it coming back down.. (I would be happier if it had stayed up) however I think that MHL is in a better position than it was so I have picked up a few more around the same price..
We'll see what happens over the next few months ..

 

[YOUNG_TRADER]

Re: MHL - Missunderstood

I've been sitting back observing the posts now and must say the following,

When I tried to bring this stock to everyones attention it was around the 3c level, which after a brief rally to 4c it spent plenty of time trading in ie 3c-3.5c

So people had plenty of time to buy, for whatever reason it seems a few waited and jumped in once it broke out and was at the 5c level

I have always seen significant upside in MHL as its oil and gas projects ar ein serious elephant grount frontier country, A discovery of even 100Mbls of oil would still be worth 50c to MHL

Calcs 100Mbls @ $20 bl EV (Mkt Avg used) = $2Billion, 15% (MHL's Interest) = $300m
And thats just for 100Mbls, we could be talking 1Billion Barrel + Elephant targets which would be worth $5 to MHL


So the point is MHL offers huge upside, but it will take time

They have already completed the surveys and have now done what I believe to be the smarth thing, which is bring in a DEEP POCKETED Partner,

For me its a no brainer bottom draw to see what happens

The interpretation of the surveys will provide targets which the company can then announce to the market,

Just think what a 1Billion Barrel Oil target would do to the SP,


So bottom line, patience is a virtue and the patient will be IMO rewarded

This is great info - MD letter copied from another forum in response to a shareholder's email -

Seems there is a lack of understanding in the market about the value of the deal on the remote Kyrgyzstan acreage. Please read the attached explanatory note which will clear up these issues. A run today was preceded by an unsubstantiated rise during the last tow weeks on NO news - I guess there is some larger investor that wanted to see the rise (to 6 cents) only to take it down.
We still have the assets, the announcement has been endorsed by many oil & gas experienced brokers....

Dear Shareholder
Thank you for your email.
While the company is concerned with the market reaction to the
announcement, the facts appear to be misunderstood.
Given the fact that the projects in the Kyrgyz Republic are frontier in nature,
exploration and possible development is high risk and also carry potentially
high development costs. While the company is enthusiastic about the potential
for the acreage, there remains a high risk profile. By bringing in funding, it
allows the company to continue to aggressively explore the projects without the
impediment of limited capital.
What the HoA means is that the projects will be explored aggressively without
contribution of funding by the company. This is carried through to production
of oil. You will note that the HoA isolates the on ground component of
exploration. This means that there is a minimum commitment to exploration via
seismic and drilling, without being diluted by other costs, some of which can be
extremely high. Given the fact that there is unprecedented demand for seismic
survey teams and drill rigs globally, there may be a need to mobilize this
equipment from countries remote to the Kyrgyz Republic. If this is the case, it
could potentially cost millions of dollars, dramatically reducing the amount of
work in the field, which is the whole point of exploration By cocooning the on
ground component and with the JV partner responsible for costs associated
with mobilization, demobilization, as well as operating and administration costs
(plus a sliding operator抯 fee), maximum benefit is delivered to the projects
themselves, not eroded in incidental costs.
While some investors feel that 15% free carried interest in the projects is not
significant, may I give you a couple of examples.
If there is a significant oil discovery made, development costs could be extreme,
with construction of pipelines, possibly as far away as China, adding massive
capital costs. MHL is protected from these costs via its free carry.
An example of a 85/15 regime is he oil and gas industry in Indonesia which is
amongst the largest in South East Asia. Under government regulations, foreign
companies are only entitled to own 15% of oil production, with the remainder
owned by the Indonesian government. Costs and taxes are in the 15%. Despite
this, many of the largest oil companies in the world successfully and very
profitably produce oil in Indonesia, despite having to carry all exploration and
development costs through to production.
Monitor Energy Ltd, has a very experienced technical and management team
that is focussed on doing smart business, not business as usual and as such will
conserve its capital for new projects, in line with our capabilities and capacity,
with near(er) term production, some of which are under review at present.
Sincerely yours,
Jon W Roestenburg B.Sc., GBQ, MLM

 

[stinger_au]

Re: MHL - Missunderstood

I've been sitting back observing the posts now and must say the following,

When I tried to bring this stock to everyones attention it was around the 3c level, which after a brief rally to 4c it spent plenty of time trading in ie 3c-3.5c

So people had plenty of time to buy, for whatever reason it seems a few waited and jumped in once it broke out and was at the 5c level

I have always seen significant upside in MHL as its oil and gas projects ar ein serious elephant grount frontier country, A discovery of even 100Mbls of oil would still be worth 50c to MHL

Calcs 100Mbls @ $20 bl EV (Mkt Avg used) = $2Billion, 15% (MHL's Interest) = $300m
And thats just for 100Mbls, we could be talking 1Billion Barrel + Elephant targets which would be worth $5 to MHL


So the point is MHL offers huge upside, but it will take time

They have already completed the surveys and have now done what I believe to be the smarth thing, which is bring in a DEEP POCKETED Partner,

For me its a no brainer bottom draw to see what happens

The interpretation of the surveys will provide targets which the company can then announce to the market,

Just think what a 1Billion Barrel Oil target would do to the SP,


So bottom line, patience is a virtue and the patient will be IMO rewarded

Very true mate - wise words, i guess this is why they say for "inverters" to not look at there stock daily because after you have done all the math and you know that you are in for long term that don't worry about ups and downs from month to month.

 

[billgeld]

Could someone tell me how much after the JV is signed will the start drilling to search for oil?

Also hoping to get some sort of news on the U front soon.

I toppped up the past couple days, hopefully the right move