Pen, by their own account, the company expects a decline this...

Pen, by their own account, the company expects a decline this quarter (see estimated cash outflows for next quarter, not that they've been all that reliable in predicting the upcoming quarterly cashflow).

As a double-check against their prediction, I looked at the following for last quarter:

Increase in producing/testing wells = 11 (non-op) & 7 (op)
Increase in net & post royalty production = 6%

This upcoming quarter they project a $9.6M development spend, and they already have 7 (non-op) and 2 (op) wells being drilled/completed. The estimated net cost of those wells would be 7 x 15% x $3M + 2 x 70% x $3M = $7.4M, so they could drill at most another 2 operated wells this quarter, which would be a total of 7 (non-op) and 4 (op). Thats less than last quarter, so the change in production will be less than a 6% increase, and I would say given the number of new wells, it'll be a decrease.

At least if they stick to the forecast cashflow for this quarter they'll still have $10M left at the end of June. But this is really then a period where the company is buying time in a holding pattern until it can do some additional deals to unlock additional value to fund the next growth phase.

Given the cash situation then at least they are doing what I would expect them to do to manage the situation, for now.

Cheers, Sharks.