So I'm guessing you're not invested here any longer? I prefer to look ahead rather then what has or hasn't happened the last 2 years. If you can't look 'past' the past here when making investment decisions then I pity you. Give the man a chance. It was a QUARTERLY that was published, not news. You're just someone whose pretty quick to jump on the bandwagon. Don't be so transparent...
You are just another wishful ramper aren't you? lol
They have drilled dozens of wells for the past couple of years and average production has still declined from 1000bpd to 530bpd. What makes you think the next two will take it to 700? The reality is, it could do or it could not. New management haven't had a track record.
Also, you say money available but where from? Loans, good. Equity, bad.
Looking ahead using the quarterlies, I get a hint that Q3 will be a bad month because they don't plan on a big spend on development and production. That is almost the best forward guidance you can get.
I don't know what's up but it doesn't sit well with what RSR is hoping to achieve production wise. You may speculate away.....
I fully expect 3p if not higher this year. A strong buy at these prices
I have faith in what they are doing in T&T, next couple of drills could add another 100 bopd, taking us close to 700, we need to keep sinking those holes and getting the wells online quickly, a couple of gushers and easily reaching 1000 bopd by year end.
Last qtr wasn't the best May was a bad month, but things are turning round again now, so we should see a faster improvement.
Debt free, money available, asset sale very near complete (imho) which will give working capital to push T&T
Price here is very attractive for new comers. This new BOD and focus on production will see this share double or triple in the next year or two, better than a building society interest rate. IMHO, DYOR of course. Steady as we go!
We know beginning of the quarter, the production was at 530bpd and it increase to 630bpd on 16 June on success of south quarry however, we finished the quarter on average of 530bpd again which is the same as last quarter. By apply simple maths, it would tell us that that sometime in the mid Quarter, the bpd must have declined to say 500bpd for it to average 530 since south quarry had half a month to contribute to the production.
This is in the environment with 4 rigs drilling and hitting a good producer(south quarry). Without that, 4 rigs is not enough to halt depletion. A question you will need to ask is why is it taking so long to get the other rigs back? Current operation is really marginal and they will struggle with reaching the YE target. Something radical needs to happen.
Buy more rigs or hire contractors and that takes money. RRL has $3m left end june and it is burning through $1.5m a month. It has a month's worth left so I am guessing another dilution shortly. Admin has increased by $700k a quarter due to the heavy management I guess. Probably for $5-7m.
Also, why no update on Texas?
My take is, this is currently a bit uncertain as to the direction as current sort of production is marginal and does not justify such a top heavy management. Waterflood is not imminent so you are faced with the prospect of a heavy management burning through your cash every month while waiting for approval and how to waterflood. Even then, you will have to start servicing the loans to LO. This is no cash spinner just yet.
That breakeven point still seems elusive not imminent at this stage and as such, I will stay out and see what they do with strategy and raising funds.
I have to say, the pump had been good right up to 2.7p and it shows how PI sentiments can cause massive volatility here.
How many times does it have to be said that it was a quarterly report, by its nature retrospective? The Proactive article that I posted earlier quoted him as talking of a "transformational' fourth quarter. If that is not bullish then what is? The fact that a very small number of shareholders, by comparison with the total number of shares in issue, chose to sell at a time when there is no news, is significant, in my opinion. As I said yesterday, share movements such as we are currently experiencing are entirely normal on AIM in an interim period with no news. The fact that we get upset is neither here nor there.
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