At Dec 2020, BRK had cash of $1.302 million and current borrowings of $5.192 million
If we look through the cashflow statements of the 2022 Annual Report
The Sept 2023 Quarterly report which show the cashflow, cash expenses for the first 3 Quarters of the year
We can roughly calculate what the total funds from operating activities ( production cashflow), funds from investing activities ( drilling, completions etc) and funds from financing ( equity raises, loans etc) have been since BRK started operated drilling activities in SWISH.
1)Net funds from operations 1 Jan 2021 to 30 Sept 2023 were :
$ 6.7 million + $33.6 million +$16.2 million = $56.5 million
2)Net funds from investing , drilling spending were:
$ -$8.53 million - $31.75 million - $20.5 million =$- 60.78 million
3) Net funds from financing were:
a) $17.25 million from share raises
b) $20.34 million from option conversions
c)&7.5 million borrowings
countered by
d) -$10.95 million repayment of borrowings
e)-$2.27 million spent in the buy back.
So in that period
1) Equity raises and option conversions raised $37.6 million
2) The company spent $ 60.78 million on drilling, leasing operations, paid back net debt of $3.45 million and spent $2.27 million on the buy back for a total net spend of $66.5 million.
The business generated net funds from operations of $56.6 million .
So total net cash in was ~ $94.2 million, and total net cash out was ~$66.5 million, leaving a surplus of ~$27.7 million . (Pretty close but not 100% accurate considering the $1.3 million at bank in Dec 31, 2020).
In summary
To say that "not really most of that cash came from share holders via options conversion...not generated via operations" is inaccurate, as share issues and option conversions raised ~$37.6 million, while net production cashflow was ~$56.6 million. Production generated ~50% more cash than equity raises and counting as this excludes what will be added in the Dec quarter.
Considering Jewell, Rangers and Flames were drilled to prove up the reserves and hold them by production, with only Wolf Pack drilled for production purposes, the cashflow generation ( even with significant but expected decline ) has been nothing short of remarkable.
Now the drilling for production begins.
We have an idea what 4 wells drilled over 2 years can do.
BRK are set to drill and complete another 20 or so over the next ~3 years. ( barring significant drilling JV's or PUD sales)
If BRK drill all the wells, at the end of that period, when the initial high production has returned all the invested cash plus a bucket load more, (and after the wells have declined 80-90%) BRK will be left with a majority WI position in ~25 very low decline ( 4-6%pa) SWISH wells, each producing ~150-250 BOEPD.
"my gosh you dont even know the bare basics of the compqny your invested in"... I think one should practice what one preaches, ( ahhh, but you don't hold so that doesn't matter) and YES the shareprice is SHIT, but here we are not talking about ,are we?
(20min delay)