Q3 estimated funds flow from operations I estimate a US$ 2,5 millon fund flows from operations (FFO) for Q3 2012, as follows:
Q2 2012 FFO: US$ 3,4 millons (see page 5 of VLE presentation at Cannacord)
Adjustment in cash flow to reflect reduced gas production in TBNG lands in Q3
Q2 gas production (net to VLE): 6,8 MM cf/d (see VLE´s August presentation, page 9
Current gas production: 13,2 MM cf/d (gross), or 5,3 MMcf/d net to VLE (see TAT´s presentation at Cannacord, page 8).
Reduced gas production in TBNG: 1,5 MM cf/d net to VLE. It is equivalent to 250 boepd
Average operating netback: US$ 39,73 per barrel (see page 5 of VLE presentation at Cannacord). Rounding at US$ 40 per barrel
Reduction in FFO for Q3: 250 boed X US$ 40 per barrel: US$ 10.000 per day, or US$ 900.000 for the full quarter
FFO for Q3: US$ 3,4 millons - US$ 0,9 millons: US$ 2,5 millons
This is the reason why VLE´s CEO talked of an annualized cash flow of between 10-12 US$ millons at the Cannacord presentation. I think he already knows that the real annualized cash flow is closer to the US$ 10 millons figure.
Just my oppinion
Fernando