RE: eyesblue29 Aug 2014 14:00
They've finally realised that increased production is the only way out of this. If the results from test drilling in October are reasonable, they could come close to doubling oil production in a 4 month window. Although this increase in production has led to increased expenditure and short term cash flow issues, its the only way they'll ever produce enough revenue to service their debt effectively and turn the company round. Its a high risk strategy as they're already debt laden but at this point its boom or bust.
Borrow more, spend wisely, increase production past 8,000 bopd+, get cash, service debt. That is the only way out. If/when a gas deal/partnership comes along, it'll be a bonus.
None of this is new news, they do however now seem to be more focused on growing the core business rather than pipe dreams.
Just my 2 cents. Stay positive eyesblue!