NWE 0.00% 5.6¢ norwest energy nl

4.1, page-57

  1. 935 Posts.
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    Cash on hand last quarter: 4,276
    Expected cash expenditure this quarter: 1,829

    Cash left on hand right now is therefore 2,447.

    Would that not mean NWE will run out of money in just over 3 months (1 more quarter)?

    I put the remaining C layer testing @ 4-6weeks (lets say 5weeks). Thinking rationally here, I do no believe the 2nd flow rate obtained from the C layer will be any higher than the original. They may be hoping for a higher average, but I do not believe the peak will change a lot (gut feel). The SP will not move on the back of this ann. It may even dwindle lower in mid to high 3's as many will question why the company had just wasted a month collecting further data.

    Irwin is up next, allow 4-6 weeks. This will be completed 2-3months from now. This gives management a window of under a month to release the Irwin results, release the preliminary reserves report, pray that the investors roll in and then and raise funds to keep the lights on at headquarters.

    If they manage to get time, High Cliff Sandstone should not take long to clean up ~2-3weeks but this has already been 85% cleaned up (ie I am not expecting any drastic improvement on 777,000 scf/d which has already been factored into the current NWE SP).

    In my opinion, management will need to raise the funds now or they will be on a knife edge further down the track. That's assuming everything sticks to the current programme. The market will not rally for an explorer that is one breath away from administration.

    Raise now, provide some stability to complete their programme, then raise again when you complete the 'research' and intend on moving into production.

    I'm now tipping 3mill to be raised @3-3.5cents in the next 2 weeks to get them through exploration.

    I'll buy back in once this has been completed and out of the way.

    Apologies if I got any of the numbers at the top incorrect, I pulled them from the last quarterly quickly.

    *insert flames and thumbs down here*
 
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