Cautious Optimism.....4 Sep 2022 08:24
IMO, we saw a marked change in circumstances last week, and I’m not referring to the removal of certain posters.
It looks like we have applied remedies on some wells and those remedies are showing good results. That said, I caution against anyone thinking that ‘that’s it’ and that a soaring SP is just around the corner. It’s a good start, but just that - a start.
I’m confident that August numbers will throw up further gains, but it’s the September results that should see a truly marked change. We are not dealing with quick fixes here.
An improving flow situation will only aid us in negotiating a simple and affordable RBL, but that is still required by ‘the market’ - it needs to see finances on a sound footing.
Couple financial solidity with increasing production, then throw in the massive potential of COPL find, and you’re then looking at a sizeable re-rate, but not until we see this in place’ will we see big rewards.
So, let’s not get ahead of ourselves here. The tide may have turned, but it’s still miles from shore!
Clear, concise communication is what we need from AM’s crew right now - operational updates that set out in simplistic terms the strides that have been taken in production. Communication is King at this stage of the company’s growth.
DYOR and GLA in the coming weeks.....