Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: ItsAllCyclical who wrote (53203)	10/19/1999 11:25:00 AM
From: SliderOnTheBlack	Read Replies (1) of 95453

JimL; MLRCs' equity offering is great news; per Barrons - about a year ago in Barron's; MLRC along with MARY was listed as two of the best small cap plays on Nat Gas. The downside to MLRC was they were sitting on a huge potential gas field - which we now know they are. But, they were illiquid to institutions because of just 7 million shares outstanding... this equity offering increases liquidity; but also allows MLRC to eliminate virtually their only remaining roadblock; now that they have the cash to drill from this new financing. They are going to build their own pipelines. This is fantastic news; as the ususal roadblock to these gas field developments is the time delay in hooking up & transmitting production. MLRC has simultaneously solved both problems; they are doubling their drilling / Cap Ex spending next year; they paid off their old credit line in full; and now they are building their own pipelines. All great news... the shares will add to liquidity; read the old numbers on their production growth from prior 10 Q's; the stumbling block was the cash to ramp up drilling and also the lack of pipelines to bring this production to market. Both solved. The dilution is so minimal to the upside of their reserves multiplying that it is a total non-issue. I have been following MLRC for over 1 1/2 years, the Barrons article last year highlighted the company and its prospects. Major players have given strong endorsements to this company. It will still be a small cap; but the possiblity for exponential growth is here. Keep "some" of these shares in the "forget about it" drawer for a couple of years - and you'll thank me... bank on it. $20 in 18-24 mos is very, very realistic imho.

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