RIA is drilling in a field with 5 flow tested discoveries - unlike BCC who book a reserve ofF a desktop study off one well - RIA will only book reserves when they drill developement wells - have a look at flow rates of Gazelle and Hippo fields and compare to SC Yes- they will use their cash to drill - when BCC develop ( if it's proven commercial ) they will also spend 10 s of millions of development drilling - where will the cash come from
Then when I take a quick look at RIA, I see that they are currently negotiating a reserves based lending facility. They are then $400m short for their big potential project. Even the normally bullish analyst reports describes then as "at the mercy of the capital markets". Bad timing for that. You say that getting a debt facility was not something to celebrate. I bet you'll celebrate if these guys get one!
You complain that BCC has used a lot of capital. Can't see contributed capital to date in the accounts here, but just last two years have raised $153m. They have some cash but cash burn is running at $22m a quarter.
And with BCC, they now cash flow positive and with chance of $20m cash flow by YE. These guys not even expecting revenue till late 2013 or 2014?
I take you point about the tighter shareholder register, some direct buying etc. The rest of its seems a bit hypocritical. On the surface anyway. I'm not spending much time on RIA. I only invest where cash flow is close. Particularly in these markets. Provides some floor versus longer term projects.
RIA Price at posting:
30.0¢ Sentiment: None Disclosure: Not Held
