Mine was a general comment that outflows are going to easily...

Mine was a general comment that outflows are going to easily exceed inflows for the rest of the year, with the possibility of either going back to market for more funds or taping debt.

From their last qtrly cashflow report...

http://strikeenergy.com.au/images/stories/pdf/2010_04_30_Quarterly%20Cashflow%20Report%20-%2031%20March%202010.pdf

Revenue was a tad over 4mn, with resulting negative operating cashflow of 1.37mn. Expected outflow for the current qtr is 6.8mn. Gas price for the last qtr was higher than the current price (hitting a peak of US6 at one point), but forex was also higher.

In the current qtr, we've since added about 600k of additional monthly revenue from Louise, and both gas price and forex has moved in our favour. Even if one include corporate overheads of 700k, I can see them being out of pocket to the extent that they need to tap the market. In fact, I think they might even break even for the next qtr. That said, they may need to tap the loan facility to develop Louise, but that will be capitalised. Don't forget we also have over 9.9mn in cash to call on, even if some of that will be used to service the current debt (I believe the repayment freeze is now over).

When they quoted the 10 wells, I believe it also includes the Bateman JV where STX only holds a 12.5% WI. So their funding commitment there is not as great. On the Cypress Eagle JV, I'd expect them to drill up 2-3 more wells after the current batch of 3.

Looking at the TRRC website, Iron Horse is currently under "Legal Examination", but a new approved well "Bee" has been added to the queue

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=STEINDORF&univDocNo=486098053

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