MHR

[patrick]

In addition to the common being down, both the C and D preferreds are down significantly.

[dan_s]

Hershal "Kip" Ferguson, EVP of Exploration is going to be the speaker at our luncheon on May 24.

Don't be too hard on MHR. Let's hear what is going on first.

[dan_s]

They have already paid for the luncheon, so unless they back out, their EVP of Exploration, Kip Ferguson will be presenting to us on May 24.

MHR fired PWC and hired BDO. BDO is a good accounting firm. In fact, I know their top oil & gas partner and he is first class.

A lot is going to happen between now and May 24, including the sale of their Eagle Ford assets to PVA which is going to significantly shore up the MHR balance sheet.

I'm not recommending anyone buy MHR but let's wait to see how this plays out. PWC does not walk on water. The Big Four often assign the "B Team" to their smaller clients and that may be the case here. I worked for a Big Eight accounting firm and I know there are good and bad audit teams.

[mrbill]

Dan, I think an Energy Prospectus Hess Club lunch would be the perfect live forum for the opportunity
to ask MHR management unfiltered about the recent events. No young super smart MBA types directing the
questions their way. Wish I could be there.

MHR fall is frustrating, but bought more yesterday. Buy when there's blood in the street. In the end let's see how it plays out.

Fancy accountants: Big name, big staff, big overhead, obsessed with engagement letters, contracts.
Give me someone like Dan with decades of experience in the business doing the evaluating.

[mrbill]

Just read the transcript of the MHR conference call on Seeking Alpha. 5 pages.
Would post the link but not computer savvy.
Gary Evans himself addresses all questions causing the downfall.
Sounds positive to me, I guess we will see.