should this doubtful project actually take place, pretty much everyone knows the driller costs for borba will be sky high, probably beyond the price of anything normally charged in california imho. the operator has never declared the drilling costs. and the operator has been presenting this for a long time now with no success... if its US $4.3 then xtsate is in deep trouble.. the driller is a shareholder with the operator. SGC never announced its previous drilling costs for demsey which has produced no gas at all.
crc is the other stakeholder in the region and is not taking part after its appraised the project. imho it has taken steps since being named to never being named again, even not as co partners in this (and we see no presentations since daring to include them as partners ) CRC is also facing imminent bankruptcy as it cant even pay its interest payments to its lenders.. we dont know if CRC region or the XST region that xstate surely has full title to, is the best acreages
xstate has spent 500k in just around 9 months, thats an astronomical cash burn compared to the previous management regime, and not used the capital for acquisitions. imho i thought the whole idea of the board change, was to bring in an acquisition ? capital wasted imho.. washed away to someone i guess..
imho if its just to keep the astronomical electricity bill going and the lights on,,, then this smells like an ongoing movement on gaining shares to a specific small group and diluting other holders out by the select few
if xstate is just a replication of SGC and its previous board was disallowed to go its own path, then whats the point of xstate? why burn $500+ k in under a year other than to fund the pockets of the operator? xstate has no operations of its own so it should be running on vapour as before.. xstate has not declared what the costs are for the few thousand dollars of gas revenue it gets for its titled acreages, if its $300k for $30k then wtf is going on? shut it in..
i would like to see the likes of chris hodge give an assessment of borba myself, that would give me a huge boost in confidence, but xstate and the other stakeholders have never put in their own assessment of borba from day 1. why is that? if its bigger than perth basin as touted here, then surely a geologist opinion by chris would be warranted to validate it?
XST Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
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