I think it might be salutary to have a closer look at the finances, as according to the latest quarterly report Buru might be down to $6m cash by the end of the last quarter. You have to remember they are still paying staff at the same time as they are not producing or selling the crude. Apparently, the storage tank is full, so they have to get the trucks running and empty the tank before they can restart production.
The rain came at a very inopportune time just as they were ramping up production.
As unfortunate as it is, it provides an opportunity for investors, while the SP lags . I await the quarterly with interest to see how much cash is left in the kitty. Eric is already looking for farmin partners to expedite the drilling program and ameliorate the cash burn in the event of drilling any future dusters. There is always the possibility, if they have any more setbacks,of- dare I say it- another capital raising.
I forgot to mention the remaining debt to Alcoa, which they have yet to offset, so it is not all plain sailing.
The process of drilling for oil and gas is an expensive exercise, that requires some degree of good fortune.
The company seems well managed, and with no more setbacks, could become the cash cow it has the potential to be, once the oil starts rolling down the highway.
