RE: Update27 Aug 2024 08:28
So, let’s be realistic instead of the immediate doom and gloom posts.
The well is producing around anticipated levels, but there is insufficient oil present for the pump to work effectively. A rod pump will prove more reliable and may well improve output.
It is a pity that they do not mention an acid wash, as this is an industry standard to improve porosity.
At least they have the money to install a different pump, and we need to see what improvements this makes.
There is some revenue, just very little.
We knew about the cost reductions, we can all tighten the belt when it is required and survival has put intense pressure on them to cut costs to the bone.
The Court will supervise the insolvency, so a formula should be arrived at for the company to continue as long as revenue can be shown to back pay the debtors.
The main point is that the company and its BOD has not given up, unlike many of the shareholders.
While they continue to believe that there is a business worth fighting for, we must all just be patient and wait on further developments.
A possibility of a return to trading in September, that is positive.