"Importantly, based on information gained from the G6, Byron has...

First 21 Last

Share
Profile

Follow
stumpytrunks

6,473 Posts.

948

22/11/23

23:05

Post #: 71054740
Share

Originally posted by jophda: ↑

So the drilling rig has gone and the G4 and G6 wells are completed and producing so the next item on the agenda is the G5 recompletion in either the K4 or N2 sand with a coil tubing unit .
It should not be a very expensive intervention and should be a valuable addition to their growing production .
Fingers crossed for a good result in that well .
With oil prices staying ok the next quarterly should see a good increase in revenue and some insight into their financial position and when more drilling will be feasible .

Expand

"Importantly, based on information gained from the G6, Byron has further refined two high quality oil prospects to the drill ready status on SM58 which we will likely drill in our next program. The Company is currently working with Enterprise to bring the EOD 264 drilling rig back to SM58 for these wells inthe US spring of 2024." - 3 October announcement, with Spring meaning March-May.

Before development costs I see them netting around $12m per quarter from operating activities. From memory the oil revenue prepayment was repayment free for 6 months, but I'll have to check that. In a nutshell they should have around $20-30m in the bank at the point of drilling the next wells. Given the repayment terms they should have little trouble 'repaying' the prepayment even if we see moderate decline across all assets.

If these wells remain relatively stable and the next ones are a success it will be the self funding critical mass point that we've been waiting for.

BYE Price at posting: 9.6¢ Sentiment: Hold Disclosure: Held
3 Upvote

2 Great analysis

Reply