Leasing (3.5M in a year), Exploration (drilling, testing etc) – lets assume 2M year, operating, development, administration, director wages. Now PYM has 8M in Bank. If you extract all expenses and add cash flow (2M in a year) then cash at the end of this year will be 4M AUD. So share price should be correlated to that. Now current cash backing is priced in. So if there is no new break out then share price will be half of that what is now. If oil price will go to 80 USD/barrel then we havea better picture. Anyway we are not making any profit because PYM needs to produce at last 800 barrels per day to stay in profit. For now PYM produces 110 barrel per day. As Sprout says could be 250 barrels when 5 wells are working. Still need more to cover all expenses.
PYM Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held