I think that is right but will have another look at your link (thks) as I have been more focused on the production/declines etc. Agree June looks worse because a good prior year drops off but I think that is why the 6 were held back to help flatten the production profile and compensate for decline over the year to maintain the result. Also June enables some cost saving measures to flow through and if there is a new drill in play then some of the G&A costs could be legitimately capitalised. I think the volume in Sept and Dec qtrs. with some cost savings (ie Corporate and Production efficiencies due to higher volume) make it manageable.
I didn't really understand at the time why the producing wells were shut in but in hindsight now I think was a good strategy due to drop in OP and also the chance of lost production due to winter anyway, now they are all done it gives more scope to plan and manage the result and expect that has been the plan. The low OP and covenant has also focussed attention on costs which long term should benefit the bottom line.
I haven't looked at reserves and generally speaking I personally think current times is about cash and margin and survival for many of the small coy's, imo it is cheaper to buy into distressed assets than explore and more than ever the only thing that matters is understanding the quarterly cash flow and having confidence that mgt are following a plan and protecting the assets. Imo the good companies will survive and prosper but story time is over for many Junior Oilers, but that is all only my opinion. Fwiw I think this team have done okay but sentiment is low and I can sit on the fence and amuse myself until there is an improvement in the overall sector.
cheers
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