It was below what I was expecting due to less new wells coming online plus a lower than expected oil percent.
Based on next quarters capex spend and production cost forecast I can't see Revenue being more than $52M - $55M for the 3rd quarter and hence still see the 3rd quarter being approx $5M cash negative.
I sold out on the open but will buy back if it drops.
The issue still remains that you need to keep drilling new wells to increase/maintain current production levels and the capex required continues to mean its hard to generate a cash surplus each quarter.
If however the oil price continues to rise the picture will look much better.
SEA Price at posting:
20.5¢ Sentiment: None Disclosure: Not Held
