At the end of March we had $2.4m in cash, conservatively it’s...

At the end of March we had $2.4m in cash, conservatively it’s been estimated that this quarter GGP will spend $3.9m. This could be more if the testing of wells and costs related to getting wells into production blowout. This could well be the case as nothing ever quite goes to plan in the O&G industry and we haven’t received a material update in sometime on the PB.

All though there is great potential for the company to be cash flow positive in the future it appears this is further away than we were all wanting. The current revenue being generated is no where near enough to cover our expenses.

We are now approaching half way through the quarter and I reckon the bank balance would be starting to look pretty sick. This weakness will not help with the J/V negotiations as we will be at the mercy of others.
A J/V is also unlikely to solve the dwindling cash problem, it could take care of future costs of drilling wells but won’t improve the current cash balance. This is assuming that everything is still on track with the J/V.

The sell off could be related to punters realising the GGP is desperately struggling for cash or maybe a break down in J/V talks, theres already been one company pull the pin on J/V talks. Of course the mention on YMYC hasn’t helped either.

With the SP where it currently is it wouldn’t surprise me to see a ridiculously low CR shortly.
I won’t be buying anymore until the cash situation is worked out and we start to get genuine updates on the PB, not the crap we have been getting that lacks details.