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MXO 0.0¢

Positive Signs

  1. This posting may stop some of the phone calls and e-mails I am getting directly. The following is supposition on my part developed from my own investigations and does not reflect any privileged information.

    On the face of it, the appointment of Frank Silc as the Director in charge of Operations is no big deal as he has effectively had that role for some time. However, it is a sign that the situation at MXO is closer to resolution. Firstly, Frank Silc is a privvy as anyone can be to the current situation at MXO, and how close they are to being resolved. Specifically I refer to the financing of debt and the fixing of Langsa to bring it to full production, and the further development and proving of other wells. If MXO are unsuccessful in negotiating a favourable arrangement, the only alternative is to place the company into administration to allow administrators to sort it out. If you thought that was the likely outcome, would you accept a position as Director at this point in time? I wouldn't! So we can assume that Frank Silc is optimistic about MXO's future. (No doubt there will be the usual granting of options in due course as was the case with the other directors. The other good point we can draw from this appointment is that it will provide the MD Brian Hockney, more opportunity to focus on the financial structure and administration of the company, where his expertise is, rather than on running an oil production facility, in which Hockney has little background and experience versus Silc's extensive experience.

    Like others I have seen the opportunity to continuously trade MXO between its troughs and peaks, but it may be at last there is the light at the end of the tunnel for longer term holders as well.

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