Going In The Right Direction.14 May 2020 16:35
A positive update. We haven't lost 300 bopd DHB, the production would be c2.3k if 150 and 153 were still producing at 500bopd. The 1700 reflects 153 production only for a few days so May numbers should be c 2000bopd until Yelemes licence upgraded and can sell at 'export' prices, that's good news and their expecting a production upgrade, more good news, The only piece of the jigsaw missing is the oil revenue number. Reading the 4th May RNS they state that oil traders are giving short term advances, maybe the oil is being stored as opposed to being sold hence the lack of detail. Can't see where Casper store 60kbopd pm going forward ? maybre the local traders are storing it in tankers but important we get clarity on that. I'm not overly worried if KO and local traders are behind the company, G&A costs are down and people going back to work. The comment in the 4/5 statement re tenge v $ benefits, why make it if not getting paid ? Needs clarifying though. Also no update on 151 and they stated that they would dictate the pace. Maybe it does point to the storing of oil and getting advances from the OTs until things get back to the new norm, pardon the pun. The company are in good shape from a financial perspective based on the info communicated but they may not be selling all of it. Maybe that's a tactical decision to wait for oil prices to move north or maybe it's a supply/demand issue.