basic reason, page-12

Hi Hazio,
Its good to know at least one prominent memeber of the GGP board recognises that the market is looking for flow rates from the company.

The bottom line of the last few days debate comes down to the current cash flow of the company given the amount as cash in the bank at March 30.

Becoming cashflow positive is alot closer than the market appears to realise.
The companies estimated spend this qtr is $3.9 million. This is not total suspension!!
At current oil price of $96 this requires 40,625 barrells of oil or 451 barrells per day.
As at the last projects update the company was generating 230 barrells a day equivalent with gas sales.
So the company needs another 220 barrrels a day gross to break even.

What to look for in the next production update I believe could be as early as today or next monday is.
An increase from 90bpd from SRH3.
Any production from SRH4
News on SRH1 and 2 Fraccing progress.

If SRH 3 and 4 were just producing the PB average (srh4 still unloading fracc fluid so not likely)of 130bpd this would add 170bpd of the 220 barrells the company needs to become cash flow positive.

The value of that 50 barrells difference at current prices is $4,800 a day the company is short. This could easily be meet by a reduction in this quarters spend by transferring $500,000 of expenditure to the next quarter when production from SRH1 and SRH2 would supply the 50 barrels needed to be cash flow positive.

I don`y believe we will see the SP break 1.5c due to the fact that the majority of shares sold/ issued since Nov have been priced at 1.5c and above.
Sorry to the chart believers but the 1.2 gap is going to be filled.
I could also be wrong as I did not expect we would see 1.5c again.
Congrats to those who got stock yesterday. In a way it was a win for the little guy as the big guys pushed the SP around. There is no benefit for them to push below 1.5c into territory they would make a capital loss on there holders.
There is a benefit if they can hold the SP down for 4-5 days to help better conversion of capital notes only if they can get their stock back at the same price they are selling. The more volume thats sold the higher the risk that those cheap shares are gone for ever.
Most of the recent shares have been issued between 1.5 and 1.7c.

Toaday and monday will be interesting days.