Hi AllGood to see a mild tone to posts since the qtr report.With...

Hi All

Good to see a mild tone to posts since the qtr report.
With the suspension of the drilling program and with only one PB well pulling its weight on the production side there was an oppotunity to disappoint from the high expectations this march qtr..
I was disappointed that the fracc of SRH 1 & 2 did not happen in early July
But this could have been due to the companies cash position before the last cash raise. Due to the record demand for servives in the PB has anyone on HC seen evidence of providers of services demanding prepayments for fracc fluid or materials etc. Thought this might have been the issue.
Revenue at $1 mill was right where I expected but not as high as I had hoped it would be 6 months ago. This got me thinking as to why. So going back over the last quarterlies and annual reports does really provide a picture of where the company was and also where it is heading.
The two things that really stand out is that GGP has never had much more than $3 mill in the bank at any time. That piddy amount of money in the oil game is a real handbrake for growth but it does appear that the 'balance sheet side of the company is growing fast, i.e the companies assets are increasing rapidly.
Rapid growth or buying assets can be fatal for a company if the income does not increase also to cover the running costs. Even profitable businesses have gone under if they don't manage their cash flow.

Its here where I will give SG a tick for the june qtr as income doubled but for mine it was the fact that GGP hit an important milestone. The companies income was higher than its combined cost of its production Costs and admin costs. it therefore paid its way.
Its expansion is its exploration and development costs. These costs SG has more flexibility over to increase or decrease depending on the companies financial position.
In effect the company has hit a point where it can keep driving down the highway until it sees something worth investing in. It doesn't need someone to pay for the petrol or the car.
So I believe this is the reason that SG suspended the drilling programm in the PB. Wether he should have not invested some funds into the EF and Arcadia is a different question and time will tell.

The power of achieving self funding of running and production costs is something many larger companies with much higher market caps have not achieved yet MR market keeps funding them.
I believe that GGP has achieved this Self funding milestone and still has a huge future.
It now can grow through a JV, a debt finance arrangement or a project % sale, or a capital raising. There really are no other options for tiny O & G companies.
I think SG has played a great hand over the last 12 months even though some expectation and announcements have not been met. He simply does not have many dollars to play with and appears to have a dislike for debt although the company would find it hard to raise a sizable debt given its last 3 year history. Maybe they hedgefunds pose to high a threat with their terms normally converting into sizable shareholdings at their will. Bank finance would be to small to be worthwhile.

While for all invested here Time is Money, it appears it is the same for SG.
Its just that his timeframe appears much longer than short term traders.

At least this company is now paying its running costs. Thats one powerful
reason for a share dilution or a company failure taken off the table .

For mine thats a milestone!
Does anyone see it the same way?