Nice.. Keith…28 Sep 2025 20:26
RE: KeithOz repost from earlierToday 18:37
And again to keep it visible...
There is some seriously deceptive nonsense being spread around concerning PRD's financial viability, particularly on ADVFN. Instead of my usual proviso that 'I am a geologist not an engineer', today we have 'I am a geologist, not an accountant'.
With this in mind, let's look at some of the numbers being bandied around, and what they really mean, rather than what certain people would like you to believe they mean.
* Cash at June 30: £2578k. This is clear funds at Barclays, Scotia, SocGen, St Lucia, & Republic Banks.
* Admin Expenses: This totalled £821k for the 6 months, but includes some notable one-offs which should not be repeated in the 2nd half - £342k for forex loss, due to the forex market chaos around the introduction of the Trump tariffs; MOU-5 technical studies of £130k, balanced with a reversal of -£184k for Lonny's bonus. Netting these effects, I would expect admin expenses to be around £530k for the second half.
* Receivables: £ 1449k. £1093k (=$1.5M) Morocco security deposit, £355k prepayments for Snowcap rig.
* Payables. NONE OF THESE ARE DUE THIS YEAR (if at all), but have to appear on the books. 1. £826.5k Moroccan withholding tax (PRD doesn't pay tax yet). 2. £324k bonus conditionally owed to PG. 3. £2,521k (TTD23.4 million) “in relation to amounts payable to the Trinidadian Ministry of Energy and Energy Industries in respect of past dues on the Cory Moruga licence” BUT “the balance of past dues on the Cory Moruga licence, which by agreement will be recovered by MEEI via agreed quarterly arrears payments, which are deductible against Petroleum Profit Tax and supplemental petroleum tax”. - see RNS 07 November 2023.
* Placing RNS July 2025: after finalising CEG deal, £450k remains available.
So the likely actual usable cash position without any testing or drilling Would likely be at the year end:
2578 + 450 + 355 = 3,383 – 530 = £2,853,000.
From this we have to deduct:
* MOU-3 perforation & testing. Guestimate of $600k.
* MOU-6. We don't yet know about the pressure build up in MOU-3, but IF MOU-6 is needed, how much is it likely to cost? Pad and access roads are already constructed, olive trees are already compensated for, shallow (950m) drilling through known stratigraphy & gas pressures, warm-stacked rig a few km away does not require expensive mob/demob costs. My guestimate – 7-day rig hire & crew $700k, specialist mud, 950m standard/slotted casing, cement, sand filter/gravel pack, standard pressure wellhead etc $1.1M.
Total costs for the above is $2.4M = £1.8M. Let's call it £2M. There's still cash left over.
Snowcap-3. Not until next year, should be fairly cheap in T&T, especially since PRD has already prepaid a big chunk (£355k = $475k) for the rig upgrade.
Conclusion – As Mark Twain has observed “rumours of my death have been greatly exaggerated”
Thanks KeithOz
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