End of March is financial year end. Wonder if Brad will give us an update as to current situation? It would be nice to know if we are keeping our heads above water and how Brad is coping with the current oil prices.
14 Mar '15
US rig count and costs plummet.
Drilling cost reductions are also plummeting as rigs compete for contracts. Reported reductions $29,000 down to $20,000 per day a whopping third reduction.. In addition US rig count of active drillers are down 37.8% on this time last year. http://www.wtrg.com/rotaryrigs.html We have a huge build up of usa crude stocks, as we are seeing the results of previously drilled wells, for which demand has not caught up yet.. This may cause prices to drop in the short term due to glut.. but strangely enough could well lead to a crude shortage later on...I'm not going to speculate what this will do to prices when and if this happens, but its great to know Brad has come out fighting this year with great efforts at paring down costs to a minimum.
9 Mar '15
Sanlam Securities reiterated their under review rating on shares of Edge Resources (LON:EDG) in a research report sent to investors on Wednesday morning. Several other analysts have also recently commented on the stock. Analysts at Northland Securities reiterated a buy rating on shares of Edge Resources in a research note on Monday, February 9th. Separately, analysts at SP Angel reiterated a buy rating and set a GBX 12 ($0.18) price target on shares of Edge Resources in a research note on Wednesday, January 28th. Shares of Edge Resources (LON:EDG) opened at 3.75 on Wednesday. Edge Resources has a 52 week low of GBX 2.75 and a 52 week high of GBX 15.97. The stock has a 50-day moving average of GBX 3.62 and a 200-day moving average of GBX 6.69. Edge Resources Inc is a Canada-based company which is engaged in the exploration, development and production of shallow oil and natural gas horizons. The Company has three projects, namely The Eye Hill project, The Grand Forks project and the Edmonton Sands project. The Eye Hill project produced oil at rates of over 100 barrels of oil per day (LON:EDG), with decreasing water cuts.
5 Mar '15
Cashflow obviously funds production, reserves remain untouched 'til oil price recovers to a meaningful level and any acquirement of land/assets would be the result of a distressed sale price, a huge differential from commercial valuation in better times. Edge really do have the edge over many small Canadian oilers who face bankruptcy.
5 Mar '15
Good question Patch. The company has an oustanding loan at around $10m balance inc interest, this loan is payable at any time, but it's the 10% interest that is killing us. No wonder the shareholder is in no rush to get it back. Also we have used $5.8m of the drawdown facility, which leaves $11.2 availble. Looking at it closely and working the overall year losses into the figures, then we obviously cannot drawdown anywhere near this figure. As I understand Brad would be looking at "bargain" aquisitions around the $1m mark, which is very possible in this climate. I still truely believe that the company will be sold and the outstanding loan paid off, I also believe that the Shareolders who provided this loan are aware of this situation, hence the agreemet of the payback. Only a matter of time imo.
4 Mar '15
Back to a loss per share of 0.03 for the 3 months to end dec 2014. I see the need to cut costs and get back to breakeven. With loans and bankdebt of ~16million, where do we get the money to pay for :" production, reserves, land and additional drilling locations when the cost of those acquisitions are expected to be at their lowest in a generation ".
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