Ann: Quarterly Activities Report - September 2021, page-2

In baseball parlance: Swing and a miss.

The recent run-up seems to be a bit of a failed soufflé ... pouff!!

Surprise, surprise, production problems again at their aged production asset ... down 20%. Sort of a carbon copy of Q3 2020 ... which took ~6 months to recover from.
Oh, and when they talk initial production rate increase from workovers (100-150 boepd promised today), remember that April 2021 production shot up by 80% to 430 boepd, before averaging 348 boepd for the quarter (ending with 319 boepd in June). To be precise, the initial breathless company release was titled:
Vienna Basin Field Well Work Results in 80% Increase in Production Rate“Current Production of 430 BOEPD compares with reported production during December 20 quarter of 240 BOEPD”
So much for capturing benefit of high oil prices and stratospheric gas prices.
Cash - essentially flat on the quarter - mainly with the help of vastly reduced Exploration spending.
1st exploration well now scheduled to spud late December and will cost €2.0mn (A$3.2mn). Apparently still a100% equity effort.
2nd exploration prospect well cost €6.6mn (A$10.5mn) is going to be farmed out.
Romania - lots of text, but no update on how to make current well produce, and wether to drill 2nd well. Their partner Reabold must be wondering if money was well spent.
Italy - they hope Mario Draghi will save thee day ... when he isn't trying to save Italy's finances ...
Renewables (Geothermal, wind to hydrogen) - LOTS OF TEXT (and pictures) ... and revenue potential sometime in next decade?

So, as we see if they can survive until the next capital raise ...
Cash balance A$4.236mn
Anshof-1 well cost A$3.2mn
November debt payment A$427,500 (same again Q2 and Q4 2022 and Austrian debt repayment kicks in Q3 2022)


Can they actually generate free cashflow?

History gives no comfort.

With COP26 just starting, perhaps ADX should make a commitment to mitigate global warming by producing less hot air ...