RE: TheMagnacarta15 Nov 2024 09:04
59% down since the start of the year - MB certainly knows how ' to build value for shareholders...' He needs to put together another investor presentation with Q&As so that some things can be clarified. Principally it would be good to know how much is left after the last raise, and how much has been spent on H2 to date. Ideally H1 needs to just fund the running costs of the company - wages etc, rents, heating, lighting etc. Aren't these about $5m a year ?
As a matter of fact does anybody know whether the H2 cost is likely to be the $1.5m for drilling the hole, or more than this ? Clearly that $1.5 spent on the Gobi drill was badly timed - it should have been after the H1 and H2 results had become known. Poor judgement and a cavalier attitude by MB.
My hope over winter is that a deal can be done with DQE. This would be the best option for everybody. Maybe when more analysis about H2 has been done then this will be more likely ?
I've copied these interesting comments from an article ;
"The classic way to estimate the size of an oil or gas field is to create a circle of drills around the first well, and move these drills ever outwards into larger circles, until the extent of the field is gauged.
But accurately estimating the volume of the reservoir remains difficult. The resources are not lying neatly underground in a "lake," with defined boundaries, but instead follow the haphazard distribution of the rock formations.
The investment bank Simmonds and Company explains it this way: "Despite an oil-field technology revolution, estimating reserves is still akin to actuarial estimates of [the] remaining years in a human life -- a scientific guess."
In any event, in oilman's language the term "proven reserves" has a somewhat elastic meaning. Under the scale known as OOIP -- original oil in place -- proven reserves are those estimates with a 90 percent probability of being correct. And this category only applies to oil fields that are already producing."
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