I have cut back about 1/2 position..I made a point of keeping in close contact with Ed Davies over the last year...and to be honest, he was well intended but fell short of the mark in a couple of areas..(Due diligence and communication to investors)..Great resume, but not so sure about running a company of his own IMO...These production issues should have been addressed as part of the DD to get our gas to market when Durango's success was announced...rahter mgmt. has been hoping the problem would not be an issue which has left us where we are.
Bottom line...this was a cashflow story. That cashflow is no longer going to happen in the time frame as originally anticipated. Lack of ability to deal with the condensate production has put a cap on our ability to produce the gas as expected. We still have a pretty good sized debt we have to service, as such planned drilling is more than likely going to either be delayed, or continued to dilute out the company. This could very come back to life down the road but it is going to take some time...
Such is life.
T2