Adds thanks for your estimations. I doubt that this is what management are planning though, particularly your estimation of capex and cash burn. With favourable exchange rates, well drill costs should be closer to US$5 mil.
Are your figures AU$?
If they are going to drill say 3 wells a year then then I would say based on what they are spending on this well, they need US$15 Mil (say US$17 mill to include additional storage). With revenue of say US$10 mil from first 2 wells plus US$24 mil from oppies, gives US$34 mil. They will spend ~US$12 mil on next 2 wells at which point revenue jumps to US$20 mil. So US$12 mil plus additional revenue still in the bank.
It may take 8 wells in Australia to be viable but would doubt anything like that in Kazakhstan. They will spend money on new ground aquisitions, likely raise more fund O/S if needed for this purpose but also have access to bank funding.
Did you go to the shareholders meeting?
Clearly your view of the world, Kazakhstan and JPR is a lot different to mine. Sure, I do tend to be a glass half full person but wow, your glass seems bone dry most of the time in your assessments. If that works for you, then great but gees I would not invest in a stock if I thought like that.
JPR Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
