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5.4¢ byron energy limited

Ann: Byron Corporate Update, page-200

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54 Posts.

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25/09/21

18:47

Post #: 56348905
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Originally posted by stumpytrunks: ↑

I've got them at $6.5-7m at end of Q, noting that they receive a month's revenue just after the end of month...so will have a cash balance of circa $10m mid-October.

Drill cost was $5.6m dry hole, plus $2-2.5m extra for the logging tools. Call it $8m. They'll pay extra to complete the well, plus a bit more for standby rates due to the weather. I can't see it being much more than $10m total.

In effect they should have a cash balance to pay the lot in mid-October.

Factor in at least 90 day payment terms (that's a whole quarter) as a buffer and I'm not seeing the issue here.

As you've noted - if they can get a 1,000 bopd flow then they can draw circa $6m extra debt...which would be roughly a quarter of revenue at that production rate. They'd be mad not to do that if they can prove a stable flow.

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Just as well the Oil price is now over $70 a barrel compared with $40 and Natural Gas at $5 compared to $3 a year ago then! Boy girl please join the French Foreign Legion!

BYE Price at posting: 13.0¢ Sentiment: Hold Disclosure: Held
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