Solid report.Always good to see them paying down debt, not only...

Solid report.
Always good to see them paying down debt, not only for the long-term, but also as a signal that they have cash to spare.

We finally have a good breakdown of costs and revenues:

Also, it seems increasing Walyering to (or above) nameplate is achievable. This will increase daily averages from 24tj/d to around ~35TJ/day. ie. around 40-45%, which commensurate increases in revenues.

Unfortunately, Q1 was a very expensive quarter with SE2/3 testing results (including workovers and associated costs). Fortunately, it seems the Q1 expenditure includes a lot of pre-paid exploration items for 3D seismic, and the three exploration wells. Also, Walyering 7 and Booth shouldn't be anywhere near as expensive as the Errugulla wells (and STX only has to pay 25% of Booth).

So, this explains the net decrease in cash of around $22 million despite the strong revenues from Walyering. The upside, of course, is that forward expenditures will be lower.

Having said all that, thank God for Walyering. The cashflows will help STX avoid having to rely on equity finance to fund its forward plans (as in the past).
It is also good to see they are cutting costs (final paragraph). Too often, once companies start earning solid revenues, they let their financial discipline slip. It's good to see SN and the board still have the 'run a tight ship' mindset that helped the company survive the early WE days.

Overall, I see report as a 'solid reset' for moving forward (after the disappointment of SE2/3). We can also rule out the need to raise equity for any of the near-term drilling activities, all of which have strong upside potential. And once we get one or two drilling successes under our belt, STX will hopefully get its mojo back.