But it would appear they are not consistently trying to reduce these unnecessary variable costs.
I think a lot of us are fearing another capital raising. We were told in the Annual Report that there would be a further review in September of the borrowing base of $15.5mil(total facility $25mil) but we haven't been told it has been successfully increased so must assume it is still $15.5mil so this further increases my fears of a CR.
I also note from the Annual Report that they paid $2.1mil for their 23%WI in drilling Gladys in the Rainbow project - given the decline rate after just one month to probably around 350boe/d now, I estimate it will take some two years to recover our investment in this well after production costs, so there must be some grave doubts now about further wells being drilled here.
SSN Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
