I do not know why everyone is having difficulty with this. It is quite simple.
They have enough cash for the next 12 months, and will now focus on increasing the current commercial flow rate while testing the new zone at FP1. They are also able to test the higher zones once production starts. They have money for all of this, and these porcesses have substantial upside potential.
Why drill another well when there is already so much positve data to e looked at in the first well.
Thats it, and it is a pretty good postion to be in. Declaring the well commercial albeit at a low flow rate (which is expected to increase) deriskes the entire venture substantially.
They will only need more cash if:
Operating expenses are more than anticipated. (Unlikely as future operating expenses are largely predictable going forward. ie roads and infrastructure)
Or, the drilling program at FP1 has further success (in which case any CR can be done at a much higher price)
VIL Price at posting:
4.1¢ Sentiment: ST Buy Disclosure: Held
