MDM Permian Inc. (OTC:MDMP) Stock in Focus After Latest News
The energy sector has almost always been a major wealth creator for investors for many decades, and it continues to be so in the modern era. There are a number of energy companies that you could look into at this point, and one of those is MDM Permian Inc. (OTC:MDMP), in light of recent events.
On Wednesday, the company entered the news cycle after it announced its strategic plans related to the reworking of three Cotton Valley gas wells located in one of the East Texas acquisitions that it had made recently. The company announced that it had managed to identify considerable reserves at the wells. It revealed that the estimated reserves ranged from 750 million to 1 million cubic feet of gas in each well. MDM Permian also noted in its news release that the production rates at the initial stage from the Cotton Valley wells had been promising.
The average production from the wells had been 1.5 million cubic feet per day. Following the initial phase of production, the numbers would eventually stabilize at around 30% to 40% of the initial production rates in the first year, the company noted in its news release. The company stated that it was fully committed to boosting the potential and performance of the Cotton Valley gas wells.
It revealed that it would deploy state-of-the art reworking technologies for the purpose of boosting production and cashing in on the considerable natural gas reserves in the East Texas area. MDM Permian also announced that it was committed to the responsible development of resources. Hence, it would look to make sure that the reworking of the gas wells adheres to all environmental and regulatory standards. The company went on to add that it was enthusiastic about the project and would look to provide more updates with regards to its progress as the reworking work went on.
On September 13, MDM Permian hit the news cycle after it announced that it had launched a Regulation D offering worth $10 million and that it would be made available exclusively to accredited investors. The company revealed at the time that the move would help accomplish two purposes. It would not only protect the interests of the company’s shareholders but also allow MDM Permian to cash in on its recent acquisitions and work on its growth prospects.
The company revealed that by structuring the offering in the form of a Regulation D offering, it would make sure that the issuance of new shares would not dilute the shareholding of the current shareholders in the company. Hence, the interests of the shareholders would be protected. Additionally, it was further noted that the capital raised through the offering would be used by the company to rework the 15 existing wells and also drill two new ones. Such a move would help in the generation of considerable cash flow from the existing reserves. The company managed to identify as many as 14 existing wells in its holdings in East Texas.
