Hi Garnoff, A few thoughts as to your question....Situation at...

Hi Garnoff,

A few thoughts as to your question....
Situation at end of last quarter:
- Losts of shares but thinly traded
- Market Cap approx $35 million
- Cash in bank of $2.5 million
- $1.7 million in exploration, production and admin costs per quarter vs $2.7 million in gross revenue from last quarter.
- Net revenue $1 million per quarter with 7.5 quarters left to run on the license
- TEG is still trying to optimise output from field, hence output is a little variable
- Work on well A8 doesn't appear to be bringing any joy (i.e. gas) at the moment.


Upside:
- TEG are paid 2 months in arrears so I'm assuming the revenue last quarter was on the 627MMCF produced in November, December, January instead of the 813MMCF produced during the quarter. (Adds another million to net quarterly income assuming costs stay the same)
- 20 year application for PASE field license renewal, submitted and feedback seems to be good.
- TEG have yet to have their three known producing wells online at one time (A1, A5 and A6) as they have been swapping parts around between them rather than buying new pieces to fit on possibly non-producing wells. (Potential to add 50% to gross revenue).

Overall plenty of upside there, and could be a very interesting 2 quarters if the renewal comes through (should see immediate revaluation), and the increased production and income start to flow through to TEG coffers (should see 2 million net revenue this quarter and 3-4 million 3Q.

Anyway, those are just my thoughts/speculation/hopes,

turtle