Penny stock with the 600K MD, page-12

bignote,
Bignote, I used the following data to get a similar result:

Period 1/7/14 to 30/6/15

No drilling, declining flow rates

NRI MBOE / day currently around 2000 and decreasing to about 1750 in 12 months time assuming no further wells drilled .

Oil ratio: 66%

Barrels of oil per month currently around 40,000 decreasing to about 35,000 in 12 months time (assuming no further wells drilled).

Net has per month currently around 4,000 Bcf decreasing to about 3,500 Bcf in 12 months time

Avg oil price of $100/ barrel (including hedging). So revenue from oil ~ $44M for 12 months

Avg gas price $4.40 / Mcf. Revenue from gas ~$6M for 12 months

Total revenue ~$50M

Cost of Sales: $10M

Administrative Costs: ~$6M

EBITDA: ~ $34M

Cost of cash: ~ $11M

Cash Flow +$23M

Point is RFE can survive and meet repayments of $100M facility.

However, meeting loan covenant requirements and HBP requirements is another matter. Would be good if Management could give the market an update on those parameters.