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LC,
Yes and more! However quite a lot will be spent on capex and drilling.
One 100% Lancaster well, plus 50% tie of Lincoln, etc.
Not much actual free cash then, but I get your point though!
Those in and out for a quick one now haven't noted the free cash yield and how it compares to the peers. It's far superior and especially with no borrowings.
This will rise....
At current run-rate, cash heads towards £240m sterling by year end.
Good RNS and about time to try and stop the rot just surprised the sp hasn't jumped more as we are only back where we were 3 days ago but early yet 20000 per day makes us cash rich so hears hoping.
Headline is operations are delivering material cash growth at over a 25% free cash yield (that's huge) and the ceo "-I can confirm that we are not aware of any subsurface, operational or commercial reasons that would have caused such decline". It's a value buy down here.
Totally agree - I'm a L/T holder here and logic was telling me that the kind of insidious and even outright lies that were being posted would have to merit a response by the company if true but even so in spite of all that I lacked the confidence yesterday to average down. If AIM wasn't such bandit infested cesspit and that includes the CEO's and you didn't see so many companies blatantly flout the rules it would help but like you I feel that they should have put it to bed earlier. I'm just glad they covered it in the RNS on 3 aspects - operational, commercial and subsurface
Re: "an update should have been made much sooner."
Persinaaly I disagree - it would almost create a precedent where if the company didn't respond to spurious suggestion, it would have to be true
A self destructive circle that's better avoided
This episode can only be described as "putrescent", an announcement could and should have been made at ~27p. Someone has made a 'killing' !
A lesson against stop losses for those that got stopped out..
I agree NI, it is nuts how hard it fell, many of us kicking ourselves we didn't buy yesterday when it hit 21.7p but I am still glad to buy in at 24p not complaining... I think minimum 34p to start with by next week but who knows, up is down and down is up these days.
DK - free cash yields at c.10% are normally good going for the O&G space. Over 25% is phenomenal. There's very good upside from these levels
can anyone guess how high this can go ?
Yep, comes down to ones risk management strategy. Strong production flows, very strong free cash generated. Essentially it comes through at around £110-£120m sterling in cash growth a year.... a free cash yield of around 25%! If we factor in capex contributions (i.e. non re-occurring) then actually it's higher. That's an outstanding financial metric.
Clearly the smart loading down here and those who sold higher re-entering. A gift for the likes of me but long termers shouldn't have been put through this IMO - an update should have been made much sooner.
Anyway, fabulous update
Jadam - Morning. IMO - better to position post the newsflow i.e. today. A much safer proposition if capital preservation is no1 objective. And I think in AIM it has to be !
The financial model clearly working even in a lower oil pricing environment.
Market cap now is looking very good value. Buy and hold again from the low/mid 20s
Time to start positioning again here