Fears from Wednesday. Receded3 Feb 2023 17:53
First fear that 133,000,000 NEW shares would land today at no fixed price, has gone...Perhaps never even there?
Second fear, "going concern" , "company do not have enough cash in the bank TODAY to buy what we need until the end of the year.
(took me till late afternoon to realise going concern was not such a concern, and it had been mentioned in many pervious documentations)
Which growing business has enough cash in the bank TODAY to cover its next 12 months operating expenditure ..Very few
Yes what we need to buy is $16m, But what was missing is the income generated from sales. This has now been unhedged to spot price, (thanks to another $450k cash request to the Sr. Gambino family). Never the less our income is now much higher over the next 6 months.
Oil production increase is key. We saw a glimmer of that in the last produced numbers, 6% up...devil in the detail is also good.
Clearly there are issues with the field that need time, but perhaps more importantly money.
By conducting the six CC recompletions we are sure to increase production and help increase our P2 numbers. RBL attractiveness, and indeed a JV partner whereby it was hinted at that we are now in the detail discussion stage and soon to be finalised.
Good weekend, and here is to a much more positive outlook next week.