And this place is no longer a graveyard it use to be.DV01, Their...

And this place is no longer a graveyard it use to be.

DV01,

Their estimated cash "out flow" for next quater is -4.2 million. These expenditures are in line with their previous quater. This is not their estimated operating cash flow for the quater. I'll let you work out what their operating cash flow would be based on current production before financing and investing activities.

I think Macquarie did a pretty simple sum, they could get their 5% interest on the debt or they could get more equity in this undervalued asset. It doesn't matter who owns it, all that matters is that they continue to develop their oil acerage while selling off a bunch of gas acerage to repay the debt.

Also note, the debt maintenance was for the quater was $816,852 which is pretty small considering their cash flow. I dont see how them getting 4.2 mil ahead on the debt is a bad thing - granted it was largly achieved by cap raisings/options. A little dilution to improve their debt to equity and p/e ratios, make it look a bit prettier for the punters and help them get their cashflow where it needs to be.

Since the 2008 it is like debt is becoming a dirty word. Look at all the flea bag stocks out there with 1 mil cash in the bank, no production, no cash flow, no debt facility because no one will loan them any money, because they dont have any production or cash flow. These flea bag stocks I am talking about have a market cap similar to EEG, I could find you half a dozen at the drop of a hat. EGO has a market cap of 90 mil and they have 1 or 2 wells. What is BRU's well count? It cant be more than 10?