I think we will hear something relatively soon, maybe after initial flow rates are confirmed. It would be very tight but based on the info in the Quarterly and well costing's I think FDM have the cash to do another two wells, back of the envelope stuff here and could probably have assumed some of the existing wells drilling costs wouldn't be sitting in creditors but paid.
Column 1
Column 2
0
11,700,000.00
Opening Balance Jun-17
1
- 4,500,000.00
Drilling costs exisitng wells
2
5,000,000.00
Bridgeing finance
3
- 6,000,000.00
Fracking two existing wells
4
10,000,000.00
Cash flow oil sales
5
- 5,000,000.00
admin costs six months
6
- 10,000,000.00
Drill and Frac two new wells
7
1,200,000.00
Net Cash
I think in reality though before any more wells are drilled funding or a partner would need to be sorted. It would be too risky to run cash that close, and it would rely on existing wells producing 125-175k barrels each as well as the cash flow timings needing to work.
Based on that I think they will wait till both wells and producing and then make a decision on further funding. So could be a few months yet.
Of course the above is just my calcs based on info from announcements, so I could be way off the mark...
FDM Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
