MHL - Monitor Energy

[YOUNG_TRADER]

Well here it is,

The long awaited JV, finally the deal is formalised, there remains but one box to be ticked and that is Sentry's funding arrangements,

All in all though I think its very positive that in such a difficualt mkt MHL don't have to come up with $10m-$15m in funding capital, at 2c thats more than MHL's current Mkt Cap

Bad day to release the ann though, mkts taking a belting

 

[STRAT]

Bad day to release the ann though, mkts taking a belting

Hi YT,
Surprising that MHL seems to be taking more of a hammering and with increased volume since the ann came out

 

[nioka]

I like the announcement. I did not like the medina bit.
Sentry petroleum (From a google search);
Based in Reno, Nevada.
Market cap $62.5M SP $1.35 (prev close)
From recent company announcement: Dr. Raj Rajeswarin has become a member of the company board. His remarkable career spans 25 yrs in the oil and gas industry including senior positions in such firms as Arco and Mobil. He is presently special oil and gas adviser to the Bank of Scotland, International Corpoprate Banking Division for South East Asia and has provided independent oil and gas advisory services to Rothschild and Sons, one of the worlds leading independent investment banking organisations.
If they have a satisfactory result from their "due diligence" look at the prospects then there is a good chance that MHL will move forward. If they back out MHL probably is not a proposition that is worth holding on to, as I see it.

 

[fundman]

I like the announcement. I did not like the medina bit.

Nioka I don't understand why you don't like the Medina bit, as it was the plan all the way along for Sentry to be the J.V partner and Medina to withdraw.
As it also did with Sentry's FNQ tenements where Medina signed them up,
then withdrew leaving Sentry as operator. As Medina is a a Hong investment
group specializing in Oil and Gas investment, not an oil gas operating company.

Sentry is vehicle set up Medina Investment Group to drill and for Medina to not just be a financier of projects they have funded 25 projects in 2007 one of their biggest funding projects is W.A. 11 billion dollar pluto gas field. I think Medina sees these profits from the projects the high price of Oil and gas and is direct a small amount of capital, miniscule compared to there investments to there own vehicle Sentry in Oil and gas.

I know for a fact that Mr A Hart(CEO of Sentry) was a consultant for Medina before Sentry and when you start to look who Sentry has on Board the management with Raj Rajeswaran who is a well respected Oil and gas expert throughout the world.

Speaking on the potential of Kyrgyzstan, Sentry Petroleum President Raj Rajeswaran commented, "The country of Kyrgyzstan is still largely unexplored for petroleum and sits surrounded by a vast oil and gas region. If the agreement is consummated it will provide Sentry with significant exploration potential. We expect to affirm our obligations within the 90 day provision period."

The last paragraph was taken from part of Media news release on the J>V released by Sentry, While things aren't moving as quick as what a lot would like I think Market conditions have a lot to do with it and I think by signing the J.V.O.A it would give Sentry full access to all of Monitors research to its fields including Gravity Survey and the Russian surveys. Which I am sure Monitor would not have given Sentry full access unless the signed on the dotted line. Also worth reading is Bio on Dr Raj Rajeswaran he has a pedigree
second to none and has done a lot and huge experience to offer. For him to join Sentry and move away from the big Oil companies Sentry's game plan would have to be pretty impressive to lure him.

For me MHL at the moment is undervalued and has been a victim of the market downturn fair value for MHL once the conditional period is over would be 3 + cents. Also it would advantageous for MHL to release more information on directional issues eg with U308 licences and J.V with Leopard.
The upside for MHL with what Young trader has focused on is the reserves
of OIL and Gas in the region, with fields surrounding MHL producing 200,000 bopd and not fully developed. While 15% does not sound much MHL's cut would be 30000 or 3.6 mil a day, 25.2 mil a day or 1.314 billion a year.
The potential for a 2 cent stock to be free carried in this project is huge.
And the reward even for Sentry is massive to be involved in this project,
while these figures show the risk reward senario investing in a company like MHL.

Based on those figures MHL would be EPS about $2 and a $8 share price but
when you focus on potential and best case senario you also have to look at down side and that is back down to the lows of 1.4 cents if it doesn't
eventuate. But like most spec investor who all know the risk we focus on the risk and the rewards and to me MHL rewards far out way the risks.

 

[YOUNG_TRADER]

I think it may have just been the fact that the JV took so long to get signed off on, ie alot of people "bought the rumuor" and may have yesterday "sold the fact"

As I keep saying, so long as MHL is all but free carried through the Elephant exploration its a good outcome as it keeps the free to focus on acquiring more projects ie South East Asian Oil and Gas leases

 

[TCB]

29-Jan-09 Quarterly Report
30-Oct-08 Quarterly Report
29-Oct-08 Annual Report
29-Sep-08 Annual Report
29-Jul-08 Quarterly Report

Well at least we know they have to release these upcoming anns if little else

 

[BenH]

So best case scenario and worst case scenario what do you guys see MHL to be worth in the short term and the long term?

 

[nioka]

So best case scenario and worst case scenario what do you guys see MHL to be worth in the short term and the long term?

If anyone answers your question they would be accused of ramping or downramping. Just let's say the answer is $0 for worst and 'lord knows" for best. This is a spec and should be treated as such. I hold a few as it has possibilities in my mind. DYOR. You should be prepared to lose any investment in a spec.

 

[rapture2002ca]

Has anyone else noticed the massive cash burn rate in the Quarterley Activites Statement?

There is only $357k left in the kitty from $1mill the previous quarter.

Does this mean us suffering shareholders are going to be up for a cap raising soon?

I tell ya what, this JV with Sentry better go through and in a hurry otherwise we are going to be in for some more pain.

 

[mickqld]

Has anyone else noticed the massive cash burn rate in the Quarterley Activites Statement?

There is only $357k left in the kitty from $1mill the previous quarter.

Does this mean us suffering shareholders are going to be up for a cap raising soon?

I tell ya what, this JV with Sentry better go through and in a hurry otherwise we are going to be in for some more pain.

Looks very much to me that they have thrown everything at this JV. Its basically an all or nothing play here. If Sentry comes through and signs the deal then MHL will be flush with cash. If it falls through then MHL is up the creek. My money is on this JV being signed,sealed and delivered very soon.

 

[habs]

well sentry has the 90 days to make a decision to go forward or not, fingers crossed...i think sentry will go forward with it, its too big an unexplored area for a large company to not get its hands on!

 

[nyo]

Looks very much to me that they have thrown everything at this JV. Its basically an all or nothing play here. If Sentry comes through and signs the deal then MHL will be flush with cash. If it falls through then MHL is up the creek. My money is on this JV being signed,sealed and delivered very soon.

Has anyone seen Sentry's announcement on

DENVER, CO, Apr 30, 2008 (MARKET WIRE via COMTEX) -- Oil and gas exploration company Sentry Petroleum Ltd. (OTCBB: SPLM)

# announced today that it has acquired all exploration rights and obligations to ATP 865, a 1.68 million acre permit, 620 miles west of Brisbane in Queensland, Australia.

Sentry CEO Alan Hart commented, "We have completed our due diligence on ATP 865 and are delighted to conclude the acquisition of such prospective acreage.

http://www2.marketwire.com/mw/emailprcntct?id=0551C9C5A5A26257

http://www.sentrypetroleum.com

Copyright 2008 Market Wire, All rights reserved.

What are the thoughts that with this out of the way that the MHL J/V may be next and the MHL cash position mentioned may be ok if the deal is completed?

 

[BenH]

Well no news is good news i guess, at least its not going backwards at this point. Im holding, hey its the only one i own not doing anything positive, but i live in hope. Im thinking when it goes bang, it will be a big bang

 

[urgalzmine]

Well no news is good news i guess, at least its not going backwards at this point. Im holding, hey its the only one i own not doing anything positive, but i live in hope. Im thinking when it goes bang, it will be a big bang

You really need to patient dude.


Author: Lawrence Williams
Posted: Wednesday , 07 May 2008


MINING FINANCE AND INVESTMENT
LOW TAX REGIME
Kyrgyz government looking to lower tax rates to stimulate foreign mining investment
At a briefing to investors and press in London, the Kyrgyz government has put its case as an exciting region in which to invest in mining in an attempt to put some previously adverse publicity behind it.


Mr Kurmanaliev also pointed out that the country has a foreign investment code which does not discriminate against foreign companies and one of the lowest tax and royalty rates suffered by the mining industry anywhere in the world. The country is working on implementing a new mining code, based on accepted western practice which is due to come into force within the next two to three months, and which may promise even lower tax and royalty rates than at present.

With mining accounting for about 11 percent of the country's GDP, and with the current high metals prices being seen, the Kyrgyz Republic sees this as an opportunity to further develop its mining sector and with that huge consumer of metals and minerals, China, on its southern border is ideally located geographically close to the world's biggest market. Currently the country is entering into infrastructure improvement, with new road and rail connections into China.





Also u will need to wait for about 3 months to confirm the JV

ahh sorry the link is here if u want to read the whole article, takes abit to load so again BE PATIENT!!!!

http://www.mineweb.net/mineweb/view/mineweb/en/page67?oid=52528&sn=Detail

 

[BenH]

Thank you for that, very positive information indeed. I got stung a little by another company when the gov decided to raise taxes, there goes a few $ of the share price. So low tax rates is definitely an upside in my eyes

 

[habs]

interesting times at the moment at mhl

volume has increased daily for the past few days and is higher that any time in the past 2 months and come off a bottom of .015 on may 5 to currently .024 as i type.

i wonder if some poeple are buying ahead of the jv 90 day cooling off period

 

[YOUNG_TRADER]

I took a few off the table as the delays in getting this JV signed off on as well as the fact that it looks like they will need to raise funds have cloudied the picture

Knowing my luck Santos will probably farm it and it will go nuts lol

 

[YOUNG_TRADER]

Oh wow,

Things are really going from bad to worse for old MHL,

I saw the speeding ticket, or so I thought, it was actually an ASX query as to how MHL expects to stay solvent

And then wham looks like all the traders exited

Well I saw this coming from the last qtrly cash flow (as stated in my 11.30am post) so glad I did bite the bullet and take some off the table

Its very upsetting to see this, MHL has so much potential and could so easily follwo in CIG's footsteps but management have no clue really, just like CTS the old adage, "its better to have Great Management on an Avg Project then Avg Management on a Great Project"

For me a very important factor going forward with investing/research and stock picking is how much managemetns interests are aligned with mine, ie how many shares do the directors own

 

[Synergy]

Wow is right.

And that is the end of my very brief day trading career. It's probably for the best.

Now where's that good news we were all waiting for??


Tomorrow... there's always tomorrow.

 

[chrissyoscar]

I had a bid of .019 all day and the stock was trading around .024 so I decided I better up the bid or get left behind if the shares keep moving forward tomorrow.
I upped it to .024 and got 55000 shares, only a small outlay but 1hr later the shares dropped 25%.
Things aren't over yet so it'll be interesting to see what happens tomorrow.
I suppose it's all part of the experience, win some lose some.
Good thing is it's not over yet.