All depends on the price we're getting for the oil and discount we're selling oil at. I've done calcs in the past and I believe we're getting $210 per 1000cub m for gas and selling oil at about 10% discount. So, a 200bopd increase is maybe $7.5k per day new revenue. $2.7mill pa. Half needs to go to Varang, unless you already accounted for that? Each 1mmcfd @ $210 is $6k per day, $2.2mill pa. I believe we had over 1mmcf in H1 which financially offset the drop in oil price. Oil has dropped a bit more. IMO 7mcf = rough break even. If we reach break even then that is a threefold incresase in income and puts us in a much stronger position when restructuring debt. All of a sudden the giant gas field will be taken seriously (as we're not going bust). Re-rate time :-) IMHO
at the sight of that little red dot lol and tbh I think mole could be right, the share issue may be to make the bottom line look healthier. But in the meantime its on with the hard hats and tighten belts!
Mr Mole - I agree entirely. We started H2 with a measly $2.2mill in the bank. Excluding debt servicing, our core overheads are $13-18mill pa. Previous years we've had revenues of around $6.5mill pa. And oil price has halved. We've either dramatically increased our income or we will need to raise substantial funds. This year. A couple of million+. The shares used to convert and clear this debt was probably a value of sub £300k. Hmmmm
Either we're going to get another more substantial placement in the next few weeks (which would seem very odd that they didn't do both together - and would also seem odd that they didn't come up with some positive opps news to support sp & hence secure better terms for the placement) OR this tiny amount was not about whether we could afford it (ie: one of the two reasons you gave). IG
Keep hearing this - i think its more likely YA have the right to ask for shares......or were asked to ask for shares. Its a debt thing not a placing! Dissappointing the drift down but its on no real news.
youre right Fire, throw in worries about the regions politics and you have all the reasons about why we languish at this level. It could all easily change though. Liked that story about Maersk that was posted the other day they are looking to invest huge sums can someone not send them an email or two describing what we have
Just caught up with Sumit from last week and I think Nicandros gave a lot away.
Undoubtedly Georgia is sitting on large accessible resources that they intend to monetise. He talked of Georgian Gas in the same breath as Azerbijani and Russian gas, He talked of exporting via established pipelines and through small scale LNG sites similar to that on Elba Island by Kinder Morgan.
I give in, if u want to believe that despite the cpr, we dont have 13tcf available, then thats up to u.
But im sticking with the theory that the suppressed sp due to dilution, ii and pi selling over a long period, and no rns stating that revenue is up and that we are in a better position to handle the debt.
Maybe we will chat again at year end, if u r still around ;)
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