Mdm Permian Inc - MDMP stock
OTC Market: MDMP • Industry: Oil
About MDM Permian
MDM Permian Inc. (OTC: MDMP) is an independent oil and gas company that focuses on the exploration, development, and production of oil and natural gas reserves in the Permian Basin of West Texas and southeastern New Mexico. The company's primary goal is to acquire and develop low-risk, high-value oil and gas properties and to maximize their potential through a combination of new technology, expertise, and financial resources. The company is based in Carrollton, TX and was founded in 1981 by Michael L. Rafael. MDM Permian became a publicly traded company via a reverse merger with BestNPet in 2019.
FireDream Resources Controlling Interest
In July, 2023, FireDream Resources, LLC acquired a controlling interest in the company and its wholly-owned subsidiary, MDM Energy, Inc., a development that has been a long-term goal for both parties. FireDream Resources, headquartered in Frisco, TX, initially formed a strategic alliance with MDM Permian in 2019. Mark T. Warner, CEO of FireDream Resources, expressed excitement about the change, highlighting their track record of bringing additional assets to the company and their plans to expand revenue sources. Warner mentioned that, except for the Ogelsby Well, all current oil and gas interests held by MDM Permian and/or operated by MDM Energy were introduced through FireDream Resources, including the Brown lease, Lindley lease, and Kew-Peacock oil and gas project.
In March, 2022, the company provided details about drilling plans for the Lindley #4-A well in Irion County, Tx. The planned well is permitted up to 2000 ft. and targets the San Angelo Sands. The drilling rig will be provided by Tinsley Drilling Company and the rig was expected to arrive in late April. According to an update in September, 2022, the Lindley 6103 well was producing 1 BOPD and the company expected to sell sell oil by the end of the month.
The Brown #1 well located in Nolan County, Texas has been connected to the main battery. To accommodate the increased production, a new 300 bbls stock tank was added to the site, in addition to the existing 210 bbl stock tank. The tanks were surrounded by a good berm. The separator was also refurbished and is now functioning perfectly with new seals. As of the end of August, the 210 bbl tank was full, and the 300 bbl tank was 1/3rd full. There were approximately 290 bbls in the frac tank. Transoil has been contracted to transport the oil, but the road was washed out due to rains. The plan is to repair the road when the ground dries out and then sell all the oil and remove the frac tank. The production rate of the well has settled to around 5-6 BOPD.
The Oglesby 1-A well located in Irion County was shut down for three months while waiting for a rig to become available. The well had ceased production and upon being pulled, it was discovered that the tubing was completely blocked by paraffin. To address the issue, the well was circulated with diesel and hot oil, and the downhole pump was replaced after testing the tubing. Following these measures, the well was flushed and production has settled at 1 ½ BOPD. A chemical program is being implemented for the well, and the company expects to sell oil this month. Additionally, the company is collaborating with NuTech Energy to evaluate and design completions for the behind pipe zones.
A field of wells in Illinois is producing revenue based on a 2% royalty.
The Kew Peacock well located in Wise County, Texas is currently producing gas and around 8 blbs of oil per month. Plans are in place to sell the oil from this lease in the near future, and a monthly chemical program has been initiated for the well. We are also assessing other wells in the area for possible acquisition.
The most recent year for which financial information is available on OTC markets is 2020.
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President and CEO Michael Refael resigned from his positions in March, 2023. He indicated that his decision was based on his belief that new management would be better to lead the company, as he has been unable to achieve the success they had hoped for. In particular, raising funds and field operations were areas that did not work out as expected.
On February 18, 2022, the company, MDM Permian announced the appointment of Mr. Michael Cohen as the vice president of finance, stating "Mr. Cohen has been a consultant for MDM Permian, Inc. for the last few years, bringing his knowledge and expertise to bear regarding FINRA and SEC regulatory issues and researching various financing scenarios." Mr. Cohen has 30 years of experience in investment banking and has been involved in numerous IPOs and Secondary Offerings with institutional, corporate, and individual accounts.
- NASDAQ. MDM Permian. Retrieved on 4/29/2023.
- MarketWatch. MDMP Stock. Retrieved on 4/29/2023.
- Bloomberg. BestNPet Completes Reverse Merger With Texas Based MDM Permian LLC and MDM Energy Inc. February 21, 2019.
- Accesswire. MDM Permian, Inc. (Symbol: MDMP) Acquires a 90% working interest in a 640-Acre Lease in the East Texas Basin. June 29, 2023.
- GlobeNewswire. MDM Permian, Inc. Lindley #4-A Drilling Schedule. March 8, 2022.
- OTC Markets. MDM Field Updates . August 31, 2023.
- OTC Markets. MDMP Financials. Retrieved on 4/29/2023.
- OTC Markets. Michael L. Rafael Resignation and Separation Letter. March 15, 2023.
- Yahoo Finance. MDM Permian Inc. (MDMP) Is Pleased to Announce the Appointment of VP of Finance. February 18, 2023.