@alexei ii FYI, all reserve reports are prepared on a well by...

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Shoelace2000

73 Posts.

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26/06/20

13:37

Post #: 45471876
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Originally posted by alexei ii: ↑

@invertedva. idk whats on the cards. I was sitting pretty when the heads were at 1.3c, and the Rex machine was about to pump. Then covid shit hit the oil price fan and fd all that up. (got oppies, so its not a matter of waiting)...now im not very hopeful.

given the oil we sell is at $40 US bbl, and costs sub $10...you would have thought co would have been pumping more than 200 bbl/day, to show mkt it has good cash flow/producing asset (purportedly with1000+ bbl/day production capability). 60% of $30k USD per day is around $6Mpa EBITDA, so $24M MC would be a more reasonable price to raise at. The way they work out oil reserves is also a bit weird - done on a well by well basis, so it does not allow you to bank money for the field in its entirety and that does not get factored into any val. Were languishing at $12M MC. idk what to make of it. Something counterintuitive going on here.

Blind Freddy will tell you Cap raise is going to be at bargain basement 12 m MC, so the benefits likely to be to those who have/maintain control. Some posters here have said that mgt has poor track record of rewarding all SH, so who knows how this is going to pan out. Ill save my option exercise money for someone else.

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@alexei ii FYI, all reserve reports are prepared on a well by well basis but then consolidated up to a field level. Every well will have a different decline curve. You can also have (in some fields not necessarily this one) different working interests. They should be able to book a reserve for the field unless there is something peculiar about this (maybe there is not enough drilling to verify reserve status over the whole field)

WBE Price at posting: 0.5¢ Sentiment: None Disclosure: Not Held
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