Ann: September Quarterly Activities Report and Appendix 5B, page-23

Please explain this then in you infinite wisdom as to why you think this company is doing well. From what I can see unless record production rates are maintained throughout the Q then we are broke, especially given $500k needs to be repaid by Q1 19 and another $770k by Q2 next year.

The cash receipts stated in this cashflow report are $US 825k.
The sales over the Q were 21k net to BAS at $US 70 pb.
That equates to almost $1.5M USD revenue.
No taxes were paid because the quarter ended in a loss.
Where has the other $700k gone?

Now the activities does say;

"The recent uplift in production directly impacts on the cash receipts, with a two month lag, due to normal cashflow processes."

This still doesn't explain why the cash receipts are so low because we produced more in the June quarter which should have filtered through to the September Q if there is a two month lag in receipts. Production costs were $771k which almost nullifies any cash receipts made over the quarter. A $260k loss for the Sept Q.

In the June Q, 25,470 at $68 pb for revenue of what should have been over $1.7m revenue but cash receipts were $1148 but in June we also had a loss of $37k or a $440k loss when you include the loan repayments.

In the March Q when they started talking about fixing the scaling (took over 6 months to actually complete, piss poor) $1.7m revenues and only $881k cash receipts and $185k loss.
Similar revenues in March and June Q.

In the December Q (where they stated two well drilling program will commence in Q3, more delays due to poor production I expect, no funds) again we have a loss of almost $700k after loan repayments.

With a $US1200K outflow expected this Q ($900k production and $300k admin) and starting of balance of $US730k, production will need to remain at all time highs as per the October production update to make a meaningful difference to the bottom line. Based on the guided outflows next quarter little work is pencilled in to be done on any upcoming drilling program because they have no money to do so.

Best case scenario the company can produce 45k barrels over the Q and lets give it a $60 sale price equates to revenues of $2.7m. Historically cash receipts have been approx half of revenues so that would mean approx $1.3m hitting the bottom line (very much hope this is alot higher). Add the $730k we already have and deduct the expected outgoing would leave a cash balance of $800k left at the end of the Q. This is just above the starting balance despite record production.

The figures don't stack up, where is all this revenue going?
Like I say above if they can manage to maintain record production this Q I would hope cash receipts would be alot higher, maybe in the region of $2m, much of which may not show up until Q1 next year in time for loan repayment. I struggle to see how they can carry put a drilling program without tat the very least renegotiating the loan arrangements or raising more funds.