Cashflow Positive, page-3

Perfectly said - cash flow positive momentarily from operations but not at the corporate level and definetely not if you include exploration and development drilling . Even if one assumes a 65 USD oil price and one generously assumes production of 10000 for the quarter , one must take out costs of production which equal 25% ( refer to previous quarterlies ) That gives us approx 488 k USD revenue . Sounds good . But wait how about development and exploration costs which are running at 600k average per quarter. So there goes all revenue , but wait how about corporate costs , well that is about 450 k per quarter and there you have it - cash flow positive at the group level to sustain development and production . Nope . All they have done is reduced the level of loss from about 4 m a year to maybe 2m a year. This excludes new wells ofcourse so at best one can hope for dilution of 30% to maintain your level of loss . Let me predict something else , if they succefully raise 2-3 m over the next 2-3 months , I suspect salaries will start to creep up. To be very honest I don’t care st all of the likes of bevter and Joseph the great buy more , I only say it for any newbies who think this is an oil company at the cusp of being self funding - it’s not even close . They have spent 1.7 m just on development drilling and 3 million in total over 9 months and have managed to increase prod by 40-50 barrels per day on this purchased oil field and have only cracked a 3000 barrel month due to wells bought on stream that are guaranteed to rapidly deplete . If that is success in your book back up the truck . In my book that is a fine tuned wealth destruction vehicle