1) Excise the least developed 40-60% of lease holdings and put it up for sale. Worst case scenario they expire unsold. Even then, value destruction for share holders will be less than the (threat of) serial dilution. Acres are no longer worth much, and company valuation would be more on production and reserves at this stage.
2) Reduce rig count to 1. With 15 days spud to spud, a single rig should be able to drill 5 wells per quarter. This should be adequate to HBP the remaining acres since they have already been significantly developed.
3) Cut other costs where possible (Cough...admin...cough).
4) The above should reduce quarterly expenditure to $20M and preserve income at $10M. Income would rise, and the gap close, as production increases.
5) Company should need minimal further capital injections over the next 12 months and be sustainably funded there after.
There is no joy for share holders under the current stategy.
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