It's obviously not a great price environment at the moment but I see a slow increase in the POO to around 55 or 60 by mid-year. I'm hopeful we break even or are slightly profitable at this price (on a cash cost basis - ignoring sunk drilling costs).
I think we've been trading below cash backing because we are yet to prove that we can successfully drill and produce oil. If our first three wells are successful (say 100BOPD each) and the oil price strengthens, I can see us around 1c by mid year.
We have sufficient cash to drill another 5 or 6 wells.
A potential wildcard is using our cash to purchase existing production assets, which would derisk our cash flow.
PYM Price at posting:
0.7¢ Sentiment: None Disclosure: Held
