They had $34 million cash at June 30, so depending on how much of that is left now, they may use some of that.
I agree with your current sentiment , the Grieve "fiasco" has certainly worsened their position and as a holder , I wouldn't be recommending buying them right now. Brad is talking a bit of BS when it comes to " warning" shareholders at the AGM's about expecting a whole lot of water , some gas and very little oil in the early stages. I attended 2 EGMs and the AGM last year and there were no such warnings, words spoken... yes, there was to be a ramp up period to get to full production, but the impression given was that " initial production" of around 1100 BOPD was to start quite quickly, and then a 6 month ramp up to ~2500 BOPD. He may have said something in 2015 and 2016 but we were all primed by them to start producing oil, not just water, in Jan 2018 .
I may be naive but despite the above, am still confident that they will refinance on significantly improved T&C on the back of the Aneth PV increase, but even so, it will be a difficult grind for 2-3 years while they try to repair the balance sheet, so as you sensibly say, keep that finger away from the trigger for now and probably for a long time yet.
cheers
Dan
ELK Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
