RE:RE:RE:RE:RE:RE:RE:RE:RE:Webinar AucontraireII... I had asked if you were mixing up " oil in place " with " proved and developed
reserves ". Oil in Place is an estimate of undiscovered resource, with undisclosed exploration costs.
It is worth nothing... unlike proved reserves. The value of an O&G company is based on the profit made available by that company to lift and sell. It's a business. If the business loses money, then there is no value, other than asset sales through liquidation. Cuda was a great example.
As to your question about paying off debt and making a profit. The following is the standardized
warning presented in their latest MD&A. Best to consider the material uncertainty as indicated, is my opinion. No worries at this point, but the biggest concern would be issuing tons of shares if unable to
obtain revolving credit.
Going Concern The Financial Statements are prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business.
The Company is pursuing exploration and development projects and contracts that will require substantial additional financing before they are able to generate positive operating cash flows.
As indicated in "Major Events Subsequent to the Reporting Period" the Company closed a financing, however, there is no guarantee the funds will be sufficient and there is no assurance that the Company will be able to raise the additional funds necessary to finance the Company's significant exploration and development opportunities on terms acceptable to the Company.
Therefore, the Company may not be able to meet its current forecasted operating and capital expenditure obligations for the next 12 months. With no assurance that additional financing will be obtained, there is material uncertainty that casts significant doubt on the Company's ability to continue as a going concern. The Financial Statements do not give effect to adjustments that would be necessary to the carrying values and classifications of assets and liabilities should the Company be unable to continue as a going concern.