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August placing after costs is enough for about 5 months of expenditure.
Given the morse code style posts I think Chesh must bore himself to sleep whilst tapping and fall on his keypad - it’s not complicated, the company has no money hence can’t do anything - so until it can find a backer there’s nothing happening here. If it can’t find a backer the cash will dwindle to zero even if they continue to take half the salaries in shares. Probably won’t get past Christmas without new funds.
The market never rated the Scirocco prospects in any case
What now? Back to sleep for a year or two until the gas production drys up.
A JV partner would be the best option. It would of course dilute equity at the asset level. Problem is that to date, BLOE haven’t shown any profit from operations even with 100 pct of the share. So who’s going to throw in millions for 50 % or 60 %? it seems the wells just aren’t productive enough.
They are not starting the sidetrack because they don’t have enough cash. It’s not complicated.
The coffers are now slowly draining to zero.
They are still paying half the salaries in shares so unless the drilling crew fancy some of the same there’s no chance of a spud.
She may have a point
This can’t continue trading with cash in bank heading to zero as production slides due to lack of activity, it’s a vicious circle unfortunately.
Time to find a solution ( either farmout or rights issue) is short. Why don’t Schlumberger want back in now oil is at $100?
Glass might be half full but it’s definitely only going one way without constant drilling Tony. Given what we know we can be sure the production isn’t stable and will be steadily falling along with cash flow. So, if despite only talking 60 pct salary the best quarter generates a net of only $200k the writing is unfortunately on the wall.
This company continues to cannibalise itself
Despite the chat the gas won’t flow at these rates for much longer unless it and it’s partners actually do development work and actually drill more wells.