Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 31, 2011 at 4:24

I have to wonder whether the situation MNLU finds themselves in is due to lenders attempting to take advantage of the fact the company is in debt and has few funding options available, or that lenders performing due diligence regarding the potential value of the asset find that the company has exaggerated the well results to date.  IMO, if the preliminary test results are half what MNLU claims, they should not be experiencing this much difficulty in acquiring working capital.  Something is amiss.

Permalink Reply by Joe Mag on August 31, 2011 at 4:41

Hey Skip,

 

Why would you exaggerate to throw away another 10 million if you have nothing to gain?  Something is not out in the public eye yet but in time it all will come out and we shall see that shortly by the look of things.

J

Permalink Reply by Bob Nies on August 31, 2011 at 6:42

I just reviewed the offering for the shares and warrants, including a Mainland Overview that was very positive about what they have to offer to investors.... along with Skip, its hard to understand if what they feel they have is realistic, why they cannot find a joint venture partner for $10 million, which is a drop in the bucket for the right folks looking for long term reserves... just doesn't feel right to me....something here is not being told/explained.

 

I'm a believer, bought some AEXP today at .05 to average down.... we'll know in the due course of time.....

Attachments:

• MainlandOverviewQ3-2011.pdf, 6.5 MB

Oil & Gas ProPermalink Reply by jeff boler on August 31, 2011 at 6:53

Attached, you will find MNLU's proposal for obtaining capital

Attachments:

• MNLU 15 Unit 2 Warrant PP Subscription Agreement Aug 2011.pdf, 363 KB

Permalink Reply by CRAIG TAYLOR on August 31, 2011 at 10:51

True, Mainland needs an equity partner and about 15 mil to finish, however i heard that the holding pond could also be stoked with catfish as well per wet conditions. It's no secret the stock is overbought! The market rarely get's it wrong and Mr. market needs positive news on mainland soon.

Permalink Reply by Carmen Simeone on August 31, 2011 at 13:34

Jeff and Bob, very interesting posts. Where did you get them ???

Oil & Gas ProPermalink Reply by jeff boler on September 1, 2011 at 7:16

MNLU's Investor Relations: Mike Parker,  +1 (608) 721-0331

Permalink Reply by Joe Mag on September 22, 2011 at 2:51

I did get the news you posted this morning. As for the weather part I do not believe as that has long passed at this time of the year. I spoke to investor relations a few days ago and they were considering selling off a few of their properties to try and complete the well. They need 10 Million to complete it and the best offers they had for funding were nothing short of rapists as far as I could tell from the conversation. Hopefully someone will step in and can make some money out of this situation.

 

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 22, 2011 at 3:54

Maybe for a 50% return.

Mezzanine financing:

A hybrid of debt and equity financing that is is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.

Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range. 

Oil & Gas ProPermalink Reply by The_Baron on September 22, 2011 at 3:52

Idiots.

 

Only a fool would drill a well they could not afford to complete.

landownerPermalink Reply by Joe Aldridge on September 22, 2011 at 4:24

I agree with you Baron. 

 

Does anyone know what the actual status of the hole is? Is it cased or are they sitting there with a drilled uncased hole waiting for money to case and complete it?

Oil & Gas ProPermalink Reply by dbob on September 22, 2011 at 6:28

Joe,

Good point - whats the end game if they go belly up? does someone else come in and complete the hole or does MS have a new tourist attraction?

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