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0.7¢ fremont petroleum corporation limited

I admire your patience Auto. Put an APB out to all villages. I...

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cmonaussie

6,312 Posts.

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24/07/17

15:04

Post #: 26044032
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Originally posted by Autosime ↑

Orion
Recovering capex means making enough margin from the oil production to recover the cost of drilling the well .
Operating costs equals the costs to keep the lights on ( Eg- all costs to be paid for including salaries , travel etc .
Now you say they don't have debt - well they do but even if they don't , you do realise I hope, that ever time they raise funds and issue another few hundred milion shares they dilute every single asset of the company by 20-25% . So even if they added 25% value via drilling , they have actually not achieved anything . You seem to be comforted by the fact they have no debt - look to Lko who have managed to stay alive for 40 years with no commercial discoveries and see what eternal share issues do to the SP. plenty of ways to destroy value , debt is one , share issues for no gain is another

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I admire your patience Auto. Put an APB out to all villages.

I have a bit of a different view on "debt". Capital is NEVER free. Either you owe the bond holder or the equity holder. And as far as equity capital contributors go, isn't the ledger in deficit to the tune of $70M five or take a few million. That's a lot of moola to makeup.

FPL Price at posting: 2.0¢ Sentiment: None Disclosure: Not Held
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