A few very quick notes from last week's AGM (generated by questions from the audience):
- CEO estimated they were pumping between 2800 and 3000 boepd at the time.
- They are paying down the WF loan by $0.5M a month (down to $18.5M).
- They are considering how best to pay for completion of the final three wells (i.e. debt or cashflow).
- They are conducting a review on well performance and there are indications that the performance issue with the most recent wells wasn't just about spacing. These North facing wells hit a fault that impacted/redirected frac fluid and reduced well flows (despite the company having seismic data for the field). This cost the geologist his job (and shareholders money) and I expect a reoccurrence is highly unlikely.
- All south facing wells (includes the three to be completed) have good geology and are/will be very economic (generating good cash flow). I take from this that good returns can continue to be delivered from the field and that issues with geology are much less likely in future.
- They have identified another acquisition that they believe is a better cash producing prospect then the current acreage and are considering how they may acquire and develop this acreage.
These are my recollections from a week ago so take the above as my interpretation only.
