Good work MM. But this was always going to be the standard answer given previous advice by the company. I am hoping (and no reason to believe otherwise) that this is the actual case. I am not sure what to make of this article. A quick back of envelope calculation:
Firstly they generated $13.6m operating cashflow according to last quarterly for 2012 financial year.
Secondly the last 2 quarters they have generated over $10m operating cahflow with $6.5m last quarter. Using June 12 as a base $6.5m x 4 quarters would give $26m in operating cashflow.
They have $25m in finance facility not yet used (drawn down $15m last quarter but sitting in bank) so this would bring us to around $50m available for development. This facility goes up to $100m and a new reserves report should give them additional funds. Page 11 of last presentation indicates another $15m anticipated to be available on the new reserves report.
They are aiming to sell off Hess JV property which they have stated could bring in another $15m to $30m in previous presentations.
So current cashflow, fiannce and land sale should bring in at least $65m to $80m, with potential for increased production (subject to oil price and results and so on) and finance facilities.
But hey anything could happen and we are just small shareholders away from the main game.
Add to My Watchlist
What is My Watchlist?