Q-Another quick email in regards to the latest quarterly. Receipts are significantly down in AUD but production in USD is inline with expectations. Is this as simple as money accrued during the quarter wasnt invoiced/paid within the quarter? About $1M AUD give or take.
A-That is correct, a percentage of revenue wasn’t received and we were underpaid by about US275K which will be adjusted (and received) in addition to Oct revenues in early November.
Q-Also a comment about Jewell WI has come up. As Jewell has paid out. BM has earned its 25% back in. Has SHE WI decreased to approximately 30% of the total WI? Or is SHE WI still 41.5%.
A-Technically our working interest remains at 41.5% but we do lose 25% of our share of production revenue due to the BME back-in so you could say our net revenue interest is now 75% of 41.5% = 31.13%
Q- Also another question about share buy backs. If the share price got below cash backing would SHE buy back on market ? Essentially buying cash at a discounted rate. (Not to mention the assets).
A- We have been thinking of potential actions….this one included. Hoping to deploy a percentage of that cash to new well investments before we get to this. Incidentally, I would argue that if you add our PV10 of forecast cashflows from our existing portfolio to current cash at bank we are already trading at a significant discount ….1.5 cents v. 2.4 cents.!
SHE Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
