Fair to say the market has baked in a lot of this news previously - the company really will need the next wells to flow like E#2 not like G#1 or G#2 to fund drilling from cashflow going forward i think the market remains sceptical until they see stabilised flow rates from the wells - remember G#1 & G#2 were going to fund all future drills going forward back in 2019/2020 and we know how that panned out ......
One glaring omission from the announcement this morning G#1 current production looks to be down to about 4mmcf/d and 30 BOPD. They really must be confident in these next wells to be taking further prepayments (before existing prerepayments have been fully repaid and they still have residual unpaid E#2 well costs of ~$6M) to be confident enough to drill their way out of a cashflow crunch ......
BYE Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
