The positive cashflow from operations is even more encouraging considering that it was achieved in spite of significant downtime (Odin offline for 26 days, and Vali offline for 21 days) during the period (and due mainly to downstream maintenance outages). Unfortunately, we are getting more of the same in the current quarter (30 days expected), but surely this should resolve soon.
This, together with improvement in Vali 2 flows expected to occur as the well gradually dewaters, should give us substantial further improvement in revenues in Q4, from the 3 currently producing wells. Even better if they can get Vali 3 flowing.
Cashflow positive operations was a major KPI the company needed to demonstrate. We appear to have that now.
All IMO.
MEL Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
