The June Quarterly:Production costs $3.9 millStaff costs:...

The June Quarterly:

Production costs $3.9 mill
Staff costs: $558,000
Admin costs: $551,000

Total: $5 million

Revenue: $12.63 mill. This is where it is always a bit of smoke and mirrors. The first part of the quarterly said the JV got US$15.4 million from sales of 148,000 bbls. It goes on to say the average production was 508. Ask yourself why was Triangles revenue only $A$12.63 mill if they report on the 78.75% equity they have in Cliff Head. The reason is the reported financial figures are only on the 57.5% that TEG owns.

So the report is for revenue of 57.5% of 148,000 bbls or 85,100 bbls. But remember that production has been over more than one quarter. Go back to the daily production number of 508 bpd. Multiply that by 57.5% and you get 292 bpd.

How much do you need to sell each bbl for to cover the $5 mill costs? The best number is around A$185/bbl.

Someone has written that he next quarterly will give the true figures and they are right. One thing will be true, Cliff Head is loosing money at these production levels. To test it all read the Pilot qtly and see how they report the revenue from production at Cliff Head. Pilot have 21.25% equity in Cliff Head.