If you like to speculate, Mart Resources (MMT.T) is a junior oil producer that should be on your radar screen. The company is out with a brief corporate update this morning on UMU-13 well results and an announcement they will be cancelling the dividend for the fourth quarter.
Mart is currently (at press time) down 10 cents trading at 58 cents on volume of 1.18 million shares.
Date | Open | High | Low | Close | Chg | Total Vol |
08/01/2015 | 0.58 | 0.68 | 0.57 | 0.68 | 0.11 | 3,307,603 |
07/01/2015 | 0.52 | 0.59 | 0.52 | 0.57 | 0.05 | 1,380,305 |
06/01/2015 | 0.55 | 0.56 | 0.46 | 0.52 | -0.06 | 3,421,390 |
05/01/2015 | 0.6 | 0.64 | 0.56 | 0.58 | -0.1 | 1,627,731 |
02/01/2015 | 0.7 | 0.71 | 0.67 | 0.68 | -0.02 | 530,056 |
The UMU 13 initial flow results are excellent with the 3 sands testing over 13,000 barrels of oil per day. Try finding a well in North America with this kind of production. In addition, the well is important as it is a step out well testing a separate seismically defined structure located east of the existing and producing Umusadege field.
The dividend cut comes as no surprise; Mart is preserving cash flow at these oil prices, as are many other oil companies.
Wade Cherwayko, chairman and chief executive officer of Mart, commented: "We are extremely pleased with the initial flow test results of the UMU-13 well, and the combined initial flow test rate of 13,309 bopd indicates that Mart and its co-venturers have a very successful well in the area located east of the existing Umusadege field, which is a separate seismically defined structure."
Mart stock has been halved since October as a result of the oil decline and operational delays, and remains a high risk high reward stock for speculators who can stomach extreme volatility (as evidenced by trading so far in 2015).
I am clearly 'rolling the dice' with my personal investment in Mart stock, but I believe at these levels the reward outweighs the risk.
Symbol: MMT.T
Share price: $0.58
Shares outstanding: 356.94 M
Market cap: $207 M
Read: UMU-13 Initial Flow Test Results, Drilling Update, and Dividend Update
Related: Significant news from this Nigerian Oil Junior or Nigerian Oil Junior frustrates investors
The author of this article owns shares in Mart Resources and is therefore biased. This is not investment advice.All facts are to be checked and verified by reader. As always please do your own due diligence.
Could be good for a double.
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