Rexco, I see that there are still a lot of misconceptions in the BBs about the last RNS stating that this is 'cashflow positive'.
That imo is very very misleading because the cash for "exploration and development" is now carried by LO. RRL doesn't have to stump up now but it doesn't mean it is not a cost. Last cashflow statement shows a revenue of $2.4m vs a cost in exploration & development of $3.5m. In summary, this is far from being profitable......
You have to bear in mind that the nature of its asset currently has very high depletion with wells initially spouting 100bpd quick declining to less than 10bpd and therefore, the exploration and development costs are very high because you cannot stop incurring those costs. Soon as you stop it, the production would drop off drastically.
imo, it is a very clever spin by DC and a very cynical one preying on people with limited accounting knowledge like you. Tread very carefully and if you have a choice, stand on the sidelines until you can see things clearly.
Please correct me if I'm wrong. But wasn't the massive placing for 35mil to China at .80 So surely these should be worth way more. Wouldn't want to be out of these small loss but going to stick around too much happening in near future
Shall I sell mine at .75. I paid .89p and will be upset at any loss. I could buy some v attractive oilers for 4.15p.
No, think I'll sit still. Am thinking of the vast acreage, the stready progress in 2015 (and 2014 for that matter), the welter of good news due (albeit some of it will be crumbs of comfort rather tnan a whole cheesecake), 3.7p expectations of Cantor, 5-50p expectations of Malcy under a management team that I think we all think was not quite as good or as communicative with shareholders as this one.
Am sure DC (with his £10m shares) and CH with his 2.3m shares will see at least the Cantor price soon if release of news is well-managed. And I think it will be.
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