On 31 December 2018, the Board of MEC Resources Limited (ASX: MMR) published the results of a 2D HR seismic survey in PEP11. The data analysis and interpretation of 2D seismic survey in PEP11 (undertaken in 2018) results have come to an end. The results of the survey highlight the presence of shallow gas within the region of a provisional exploration well in the Baleen prospect. The legacy seismic data highlights that the survey data could image intra-Permian seismic reflectors.
The Baleen 2D HR Seismic survey covers 206 km of the region in the Baleen Prospect. It also includes Newcastle Syncline which joins the New Seaclem-1 exploration well (2010). The data from the survey obtained got integrated with other legacy seismic data in order have a clear picture of the shallow Tertiary sequence and the Permo-Triassic sequence lying below the main unconformity. For this purpose, the Baleen 2D seismic survey was designed in such a way to identify the number of technical objectives of the survey. These objectives include the acquisition of high-quality multi-fold 2D seismic data through controlled acoustic energy source. It was then compared with the previous survey designs so that a new modern seismic tie is obtained from the New Seaclem-1 exploration well (2010). The objective of the survey also includes receiving a detailed grid of seismic in the exploration well in the Baleen Prospect and to obtain multi-fold seismic data in the shallow Tertiary section.
The official listing date of MMR is 29 May 2006. Since then, the company has given a consistent negative performance. In ten years, the performance of the company is -77.45%. The last one-year performance of MMR is -47.83%. However, the previous five days performance remains positive which is 20%.
For the FY2018, ending on 30 June 2018, the company incurred a net loss of $19,914,101. Here, the company has made a huge expenditure on exploration. There were other sources of expenses as well but not as large as the exploration expenditure. The balance sheet highlights that it would be able to manage its long-term debt as it has a net asset base of $10,554,799. However, it will face the challenges in meeting the working capital requirements and in clearing the short-term debt. It is because the total current asset of $1,764,434 which the company owns is much below the total current liabilities of $2,235,669. Further, there is an increase in the accumulated losses in FY2018, which could influence the investors and the shareholders negatively.
At the end of the financial year 2018, the net cash and cash equivalent available with the company was $978,497.
By the end of the trading on 31 December 2018, the closing price of the share was A$0.012 which remain constant as compared to its previous trading day’s closing price with the stock having a market capitalization of A$4.1 million.
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