from ssn reports

more info...Quote..
Liquidity, Capital Resources and Capital Expenditures

Our primary use of capital has been acquiring, developing and exploring oil and natural gas properties and we anticipate this will be our primary use of capital during the fiscal year ending June 30, 2014 as well.

Our current budget for exploration, exploitation and development capital expenditures in fiscal year ending June 30, 2014 is $20.0 million, of which we incurred approximately $12.6 million during the first three months of the fiscal year. We were able to make these expenditures in order to participate in the drilling and completion of the first five wells in our North Stockyard infill development program due to our recent registered direct offering and the sale of development acreage to Slawson. The remaining $7.4 million in planned capital expenditures, some of which depends upon obtaining additional financing relates to the drilling and completion of three additional wells in our North Stockyard infill project. We expect to fund our remaining fiscal year ending June 30, 2014 capital expenditures with cash on hand and cash flow from operations, and possibly equity finance raisings, a debt financing or other capital raising program or asset sales.
We are continually monitoring the capital resources available to us to meet our future financial obligations, planned capital expenditure activities and liquidity. Our future success in growing our proved reserves and production will be highly dependent on capital resources available to us and our success in finding or acquiring such additional productive reserves.

Currently our two main sources of liquidity during the fiscal year ending June 30, 2014 have been cash on hand, which was $8.5 million, excluding restricted cash, at September 30, 2013, cash flows from operations, our recent registered direct offering, and the sale of development acreage to Slawson. We continue to explore various methods of obtaining equity capital or debt financing during the remainder of the fiscal year.

During the past three fiscal years, our three main sources of liquidity were (i) approximately $73.2 million cash received from the sale of 24,166 acres in Goshen County, Wyoming to Chesapeake Energy Corporation, (ii) $6.3 million received from the sale of our interests in the Jonah and Lookout Wash fields and
(iii) our tax refund of $5.6 million from the Internal Revenue Service, received in February 2013. Both sales occurred during the fiscal year ended June 30, 2011. During the recent years prior to the fiscal year ended June 30, 2011, our primary sources of liquidity were (i) equity raises and (ii) a loan facility with Macquarie Bank Limited, which we repaid in full on May 30, 2011.

Our cash on hand position as of September 30, 2013 increased slightly from the same period in the previous year largely due to equity raising completed and the sale of development acreage in August 2013.

If future drilling success rates or production are less than anticipated, the value of our position in affected areas will decline, our results of operations, financial condition and liquidity will be adversely impacted and we could incur material write-downs of unevaluated properties. See the risk factors in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013 including "Drilling results in emerging plays, such as our Hawk Springs and Roosevelt Projects, are subject to heightened risks." and "Inadequate liquidity could materially and adversely affect our business operations." See also Part II, Item 1A /ends/

Probably needs to be read a couple of times 7o get a balanced and objective view of this report....Glta