Lets not get too dramatic just yet. The directors believe there...

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199 Posts.

17/03/16

19:16

Post #: 17303945
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Originally posted by dougfr ↑

The following note appeared at the end of the auditors report for the latest financial report:

"Without qualifying our conclusion, we draw attention to Note 2 to the financial statements, which indicates that the consolidated entity incurred a net loss of $15,882,507 for the half-year ended 31 December 2015. As at that date, the consolidated entity had net current liabilities of $15,292,793 and net liabilities of $79,435. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business."

While this could be construed as a normal caveat expressed by an auditor, when coupled with the recent NYSE notification that the Company is not in compliance with its listing rules indicates that there may be some serious doubt about the company's ongoing financial viability.

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Lets not get too dramatic just yet.

The directors believe there are reasonable grounds to believe that the Consolidated Entity will be able to continue as a going concern, after consideration of the following factors:
- As disclosed at Note 14 the Consolidated Entity has received a commitment letter from Mutual of Omaha Bank to fund the acquisition of producing assets in Montana and North Dakota (Williston Basin Properties), from Oasis Petroleum North America LLC. Management estimates that the acquisition of these assets will effectively double current production levels and add significant upside to the Consolidated Entity;

SSN Price at posting: 0.7¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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