The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Management have stated repeatedly that our cash flow is sufficient to achieve all of our near terms goals. No need to raise any finance.
So cashburn from company accounts until fully up and producing to maximum revenue,I've asked this before and I know they have some revenue stream coming in ATM is this sufficient or will they need to raise finance either by share offer or institution?
Everopeful, thanks.
For anyone else interested, Colin covers this in the Q&A of the LSE event. yt link to relevant section below
https://www.youtube.com/watch?v=xhaNuCP8VPo&t=1515s
Thanks Everopeful, that's great.
I would expect the costs to have gone up in line with recent inflation, but that's inevitable.
Go to zephyr website and find LSE presentation on 8th Feb. Colin outlines expected cost to Zephyr as 16million usd for 3 wells. 8 million per well , 2 have 25% non op interest And 1 well split 50/50 with neighbouring property so 2 at 6mill and 1 at 4 mill.
Regarding the CPR, I'm good to base my investment decision on the 2P reserve estimates given by Sproule.
TDav, some very pertinent "what ifs ". We should get an indication of the drilling costs when the rig and drilling contracts are signed, after the permissions have been granted.
Sproule's CPR probably does contain statements of risks and assumptions made. However, these may or may not be standard expert/consultant caveats to cover themselves.
Historically wells in the Paradox basin cost $8-$14m to drill but with improvement in technology/modern rigs Zephyrs drilling is likely to come in below these old figures. 16-2 cost around $3m to drill but that was on an existing well pad. There probably isn't a definitive answer to drilling cost(each drill may be different) but you could estimate upwards of $3m, my guess would be between $3m and $8m per well. Maybe someone else could come up with something more precise ?
Why not contact zephyr direct with your questions
Link to general enquiry form on the zphr website
https://www.zephyrplc.com/contact/
Thebhoys, I couldn't find any drill costs in RNSs, if I've missed anything, please let me know. I had hoped that we might have some drilling experts on the board who might be able to offer a view. The precise costs for zphr will of course result from the outcome of ongoing negotiation with suppliers.
The_Chain, I am still concerned about CoS on the prospective new wells and Paradox in general (was 16-2 an easy target compared to the others?), although this of course is at the heart of the risk/reward proposition of zphr. It’s quite possible that we spend all the non-op money on unsuccessful drills, which may explain the recent discount to current non-op NPV. I remain intrigued that the company has chosen not to share the full CPR document when they still provide on the website the 2018 version commissioned by Rose and that for the recent non-op acquisition. The CPR would reveal more of the detail of Sproule's thinking regarding the property.
The bhoys, I suspect a few were waiting for the price to drop lower, but have perhaps noted the change in sentiment on the board, and the apparent new buying pressure at these prices. It could be that they fear missing the boat so are perhaps trying to instill doubt.
Why does individuals come on to the forum express their views then ask what the drill costs will be when it is there in recent updates and we are fully funded.
One would expect that they haven’t read up on our company therefor not invested!
Does anyone know how much each of the three drill operations this year will cost? Even better, what would they have cost last year, and by how much has that cost increased in 2022? I read somewhere that casing cost was up between 100-200%. How much of the excess we are making on non-op will be consumed by higher costs?