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Have to say after all that you agree together in a strange way , its like two dogs fighting over a bone. The Bone will always be a bone and after the fight they share the bone. Its Friday long week and good news we can start again. Can see clearly what Block energy are doing , the conditions of sale in my eyes is get the gas connected and sold and we will sell our block ( demonstrating that Block energy are not a fly on the wall ). Said from the start the gas was the route and so many capped wells that could be tapped and exploited for gas connection , connect 6 to 8 wells of these capped wells and you have a mayor source of gas even minor each one as a collective is a game changer. Start pumping CO2 and even better. Food for thought or should a say a bone. On my second bottle of cider have a good weekend
Which is correct, what we don't know and neither to you, as what what the out goings are since the 30th June. For that you will have to wait for the 31st December, year end audited accounts. By the year end the companies financial and operational planning following the agreed acquisition of BKs 9 and 10b should have been made available to the market. DYOR
That cash balance deduction was expected to pay up front for the EGF production, supply and its installation. As of the EGF announcement of 25 hrs of dry gas production the Capital program for both Oil and Gas has concluded for this year. The company remains on a care and maintenance COVID stance conserving cash. If you can point to any other Nomad approved documentation which differs from that I'm happy to accept it.
NO - I do not agree there is more in the bank on the 30th September than there was on the 30th June.
The simple answer is neither of us know, however between the 6th April and the 30th June the cash balance reduced from $3,400,000 to $2,258,000 when they were mostly in lockdown so even allowing for the oil sales in August I think it is highly likely the cash in the bank on the 30th September will be less than it was on the 30th June.
So we agree there is more in the bank on the 30th September than there was on the 30th June. I also agree that most AIM Oil&Gas companies have cashflow problems at the present, with the exception of UJO. And yes, the payment for services and salaries with share which people seem eager to take continues which is what was stated in the April 7th financial plan which would continue until first gas payments was received. I also agree you are going to see a lot of twists and turns here during the coming year. Its called surviving a massive shock to the world financial system caused by the PRC playing with a virus fire and releasing a highly virulent SARS virus research tool into the wild which has cost over 1 million lives to date. But that is Block's fault isn't it? DYOR
AJW - I do not need to read the RNS again, I fully understood it. YOU seem to be claiming that Block have $2.826,000 in the bank on the 30th September - I very much doubt it. What you have done is to add the oil sales figure in August to the 30th June cash balance but failed to subtract any expenditure during the months of July, August and September including the deferred salaries in Georgia which Block have always stated would be paid once oil sales resumed. There is obviously a mass of potential here in the future with the Schlumb deal and I am sure there must be something brewing in the background with regard to the Scottish contingent but in the short term it is obvious to me Block have a cash flow problem, even today they have announced they have paid for yet more services in shares. I think you are going to see a lot of twists and turns here during the coming year.
I'd be surprised once all the taps have been turned on that they don't have enough coming in to break even. Lot depends on 200 per day from Schlumb and what % Block retain from sales, so even at this low level we are susceptible to the price of oil. From recall Schlumb had Georgian tax payments written down on their books against sales but it didn't seem excessive, I'd assume the current agreement would be transferred once sale is complete, maybe our CEO could improve this?
So I'm not worried about Block as a going concern in the short term, its the medium to long term campaigns that will need financing for sure, but how??
Hepseal please read the RNS again. I was care to state the date 30th September Block sold $568,000 of oil post 30th June. So $2,258,000 cash in the bank at 30th June plus $568,000 of oil sales post 30th June $2,826.000. Block have yet to publish their operational plan for 2021 and how they will pay for it, after completing the purchase of Block 10b and Block 9 this year. With NO sales of oil and Gas yes they may well run out of cash in hand by the Summer. DYOR
Just to add dont forget we get the oil from schlum blocks when the deal goes thro which approx is 200bopd no point jumping the gun yet ,just wait and see what the gas gets connected at and then we will hopefully have a good idea of income and then see were we are IMO,GLA
The accounts state the company could face a shortage of cash next Summer. However, the accounts don't take onto account the 120k per month from gas sales which are expected to commence this year. Block will need funds for the Slb blocks so a farm in, debt financing or equity raise is on the cards in the the new year. MP
AJW - I am sorry but Geowiz is totally correct, they will be out of cash by next summer at this rate.
At the 30th June they only had $2,258,000 cash in the bank, £1.75M (not $2,826.000 as you say in your post). The proceeds from the oil sales in August will have to contribute towards deferred salaries in Georgia. There is unlikely to be any significant oil or gas revenue now until 2021 and when there is it will be fairly modest. Outgoings since June will include the following: Monthly salaries and running costs Professional fees regarding acquisition. Professional fees to EPF Construction costs since June assembling EPF and constructing gathering pipeline from WR38 to EPF DYOR (or do your own maths)
Your math didn't work the last time. Blocks Capital Well program Suspended. Now that the EPF has been finished, tested and producing dry Gas, the expenditure is now with Bago to provide the distribution pipe line and Metering station, EPF capital expenditure has finished with that section of development. WR 3 D completed. Rig returned to GOG $2,826,000 cash in the bank First Gas sales and oil into storage due during the next 12 weeks What capital expenditure did you have in mind? DYOR
When is the capital raise going to be do we think. They will be out of cash by next summer at this rate and can’t leave it until the last gasp so I think Christmas time perhaps? Question is how much and at what price?