RE: Ceg interview5 Feb 2025 09:46
GarryGraham - have to agree with JBT your last post plumbed new depths for naive nonsense! As he suggested, for a claimed shareholder you are remarkably ignorant about the financial fundamentals of your company - looks like I’ll have to disabuse you, yet again!
Re Scenario 1 the quote below is from latest Interims. Even at the higher burn rate of $200,000 per month it will take more than 4 years to exhaust $10 million ( You’ll see I’ve already generously allowed $2.5 million for OFF-3 expenses and Trinidad Tidying ) .This quote also deals with Scenario 3 where you suggest the cash will only last 18 months!
“ Financial Review, Cash Position and Funding
The unaudited interim financial statements for the half year ended 30 June 2024 present details on the financial performance of the Company for the period. By way of added commentary, I would note that the nature of the Company's primary business - high impact hydrocarbon exploration activities - means that a key financial indicator we focus on, and which is not always readily discernible from the financial statements, is net cash spend (or "overhead run-rate" or "burn" as it is sometimes also referred to).
In this regard, the Company's net cash spend, after adjusting for various items such as licence expenses in Uruguay and purchase of property plant and equipment in Trinidad & Tobago, was in the order of $180,000 per month. This represents the basic costs of staying in business as a junior AIM-listed company - corporate expenses, salaries, listing costs, annual audit fees, etc. We believe that this level of "burn" compares favourably with similar AIM-listed entities, is consistent with the level of net cash spend in prior periods, and meets the Company's stated objective of keeping its "burn" under $200,000 per month.”
Re Scenario 2 you want me to trust you about the cost of the Chevron Christmas Party. You seemingly have intimate knowledge of those events perhaps you’d like to share some of the more colourful details on this board - I’m all for amusement here! Failing such a report from you I have to say I applaud your continued theme that Chevron are awash with cash, as I’ve said many times previously they are probably the best partner in the world for CEG.
Incidentally if Chevron don’t proceed with the drill, bearing in mind how awash with cash they are, it will, almost certainly, be because, having spent hugely on 3D seismic, at their own expense, they conclude the COS doesn’t justify the drill cost. In that scenario surely you’d applaud such an approach since you were so critical of BPC management hitting a duster previously!
Finally I’ll return to a previous theme - an AIM Oil Exploration and Production Company with a history of non profitability for more than a decade is an ultra high risk/ reward investment proposition- it’s at the other end of the spectrum to say a Building Society account or, for the little more daring, a portfolio of Blu
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