OEX 20.0% 0.6¢ oilex ltd

Ann: Cambay 77H GSA Endorsed, Move to Production, page-5

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  1. 1,409 Posts.
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    Mildly positive ann but raises questions and doubts - everyone's been burnt and are now cynics.
    Sorry, but I'm not overly inspired by these words - I want to see actual money rolling in that covers all expenses plus retained positive cash flow.

    I think maybe the punters are focussing on "The Cambay Joint Venture will now establish the appropriate production facilities for Cambay-77H and initially connect Cambay-77H to a low pressure pipeline grid to service the local area."

    A seemingly benign statement, but my question is, will OEX now need more funds to "establish the appropriate production facilities for Cambay-77H and initially connect Cambay-77H to a low pressure pipeline grid" - is this expenditure in current budgets or earmarked in any of the CRs?  Can we now expect another loan shark cash raising i.e. Darwin?

    And, "Production from these wells will be a substantial step towards cash positive operations in India for the Company as a result of the strong gas demand and associated robust gas price structure."

    This doesn't say that the wells will actually achieve cash positive operations at this stage - it's just a step in that direction, could mean not even cash neutral. It really doesn't say anything - just that they're not losing too much money from operations and they're moving towards a positive earnings result i.e. they're hopeful.  

    So at this stage OEX will be sharing in the income from delivery of only a low pressure gas operation i.e. relatively low vols at piss-weak pressure coming out of 77 .

    Does cash positive mean no more CRs to cover corporate burn, or just enough to cover daily production,  plus?
 
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