ian Good pick up. Seeing that the revenue for Permian Basin wells are NOT for GGP but go to Laredo that means GGP income is only from the other wells.
That being the case, and having only $572K in the bank at end of the quarter, whatever portion of the $3.1M is not apportioned to offset against the Laredo $5.3M will have to come out of the company pockets.
Example, $800K for administration and whatever portion of the Production Costs and Development Costs not attributed to PB is coming out of CASH AT BANK and Hersing and other wells. Lets guess and say 2/3rds of these are for PB that would mean...$800K + $700K = $1.5M - $572K (cash at bank) = $928K they have to come up with this quarter.....dont forget they cant use PB figures.
SO at the end of the day they will get bugger all out of the $5.3M. And who knows if they will be solvent...IMHO
GGP Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held
