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?
OEX Price at posting:
4.3¢ Sentiment: None Disclosure: Held