re: Ann: Braveheart-1, WA-333-P Browse Basin,...
Was going through some numbers yesterday on MOG's drilling expenditure for both Cornea and Braveheart. From what I have concluded initially, there would need to be some fairly significant delay's to cause a cash crisis for the company, given that once it has funded up to the agreed maximum under the farm-in agreements (being $7.7M and $8.1M for Cornea and BH respectively), any excess in the drill costs would be split between the JV partners according to their interests. I couldn't find the exact cost per day for the Songa Venus to sit idle, but from memory it was slightly upward of $0.5M per day. If we call it $550,000 p/d, according to MOG's interests in the permits that is around $145,000 per day for MOG's BH interest.
The Grant Thornton reports shows the pro-forma balance sheet post RI as having just over $21M, thus there would need to be some fairly significant delay's (i.e. weeks) for MOG to need to secure additional cash.
On that basis, I'm not concerned about the need to raise additional funds in the short term, and I still hold.
MOG Price at posting:
19.5¢ Sentiment: None Disclosure: Held
