Who really knows what they may do or choose to spend money on, the precise cash position mid 2015 is hard to quantify. The important thing is, as they are doing, they prioritize the Bentley FDP and have sufficient contingency, as they estimated a figure with the recent bond issue, to cover ongoing costs, any emergencies, further demands of DECC, or their selected contractors, or their current and/or intended lenders, up to and after submission and award of the FDP. For example, there's recently been a field survey conducted, they probably have ongoing design and EOR test fees to pay, there are Bond interest payments in arrears to be made, legal costs for the RBL, contractor agreements and possible cash deposit obligations in relation to that as per the RN, wells to drill, etc., etc. All pi's need to feel comfortable about is that the company is funded, as it is, until such reasonable time ahead that the FDP is submitted and approved. There may or may not also be additional incoming funds from warrant or option take up, but with the sp as it is one just can't say with precision that will happen and by mid next year there will be £10m, £20m, whatever cash remaining. All depends on successfully concluding the tasks in hand at the moment. Either way, after mid 2015 to be charitable, it will be a completely new ball game for XEL. If they have the RBL and partner funds, with the FDP approved, there is no issue. But if they don't have the FDP to hand, then, whatever of the above figures is left won't keep the show on the road.
What's cash burn like??
It's a given they will survive in worst case scenario with the cash in hand at least until mid 2015 ============================================================== Cash balance of £41.5 million as at 30 June 2014. How will we manage in the worse case scenario until at least only mid 2015? (i.e where are you getting your numbers from)
It's a given they will survive in worst case scenario with the cash in hand at least until mid 2015, well past the time by which the FDP would be submitted and approved. As and when approved the RBL will be available, plus hopefully either cash in from contractors or a jv partner, or better still, an acceptable t/o offer. Jmo..
I shall recommend you to be the next Poet Laureate with that rendition!
Will keep my eye out for those micro- macro- velcro-economics. They sound troublesome. Can you get tablets?
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