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29/04/16
20:34
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Originally posted by rosencrantz
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BGG:
""they seem to be leaking more money then they can afford"" .
well, yes cash on hand is down over the quarter from USD3.5million to USD2.4million but current liabilities have been reduced by USD7.8million . We dont have a balance sheet to study but I'm willing to say that they generated net positive cash ...and that this will continue thru Q2 of 2016
Why ? the maintenance and evident confidence in their original 2016 guidance on 29 January.
Consider::
the cash cost of 12.26/boe for the quarter is within their indicated guidance USD10.50 to USD12.50 for FY 2016
they remain committed to maintaining 6800 boe/d production for FY 2016 ..arising from well completions ( 3?) and " various operational optimisation projects "[ new pumps?] which will be funded from operating cashflow
and
most interestingly
no evident increase in hedging ..despite the fact that in recent days they could have locked in sales at a premium over the USD42.68 achieved thru Q1
Directors must be confident that their "top tier cost structure" will see the company through to the next borrowing base redetermination ..in May 2016?
Beyond that I'm confident that if slimming down is required [because of weak(er) oil prices ] then this bunch of directors are well placed to deal with it .
For this quarter I give them 8 out of 10.
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My apologies... You are correct with the 7 million debt off which is great. I can't believe they can extract at such low prices.... When will those 15 odd wells be fracked???