What I did like was the cash burn, or actually lack of it. We know that drilling a well cost something like 5mill US. In the previous quarter they drilled 1 100% well, + participated in several others. I'm not sure to what extent the drilling costs are offset in time, but if you take out all the tubulars the last quarter was quite cheap costwise for what they have done. I would think the expenses would drop off dramatically in the current quarter as there isn't any drilling planned. If there isn't any big carry-over expenses from last quarter I think the income even at current low prices should easily cover the expenses given that they are basically in hibernation.
SEA Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
