GREY:PTGBF - Post by User
Comment by
jon8034on Jun 21, 2007 8:31am
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Post# 12976579
RE: Palo Duro update
RE: Palo Duro update Looks like about 7 million was spent on additional property aquisitions accounting for the 1st quarter cash drawdown - a smart move if the area is generating producing wells - so normal operations expense seems to be at par with revenue.
At 1.1 million cubic feet per day that is 8,000 per day times 30 days is 240,000 per month. In addition I am sure they have ongoing consulting revenue. Should it be necessary, I suspect that some financing arrangement can be made based on the new 3.2 million cubic ft per day well now that infrastructure right of ways have been obtained (I suspect that is where part of the 7 million went). If necessary they could always do a PP for a few million which would not be too bad of a dilution considering the additional assets that are being brought online - but I suspect they can make better arrangements at this point with a bank, assuming they need the extra cash before 4th quarter. JMHO