Eps acceptable, communication is not I was slightly disappointed, as most of us I guess, since I expected something at least in line with q2. Production still significantly below capacity, and costs are up, even on a per bbl basis. All companies can have a slow quarter, that is not my problem or reason for this post since I consider myself a long term investor, but all companies are not as blasé or generic in their reporting to shareholders on progress, or rather the lack of it.
I encourage you to read the last three md&a's side by side and you will see how strikingly similar they are "our capacity is x, we produce y", "we deliver gas to the refinery when we can" we are implementing water floods" etc etc. there is not a single detailed explanation in there of why are we not producing at capacity, what is holding back the facility de-bottlenecking, what is the status on the negotiations for continual gas delivery, what efforts are being made to seek other customers? Why did costs increase with 58% when production only increase with 22%? How are you going to finance the Delvina hz, and why do you need it now when you don't have any off take? Is the gas reinjection in place so that we can at least produce 3-400 bbl of condensate per day? If not, why and when will it be in place? Can we extend our facility with R bank, or are there other avenues to capital? I could go on and on, but you get the drift...
Yes, this company is dirt cheap on metrics, both reserves, resources and cash flow/earnings, no argument there. BUT unless they lift their communication skills with the market a couple of notches, I'm concerned we will never move beyond what today is a bit of a mom n' pop business unknown to all but a small core of followers...
Bobwins, you seem to be tight with Jim, can you raise some of these issues? And what about putting out a corp presentation that actually contains some useful metrics and guidance? The market doesn't care that you think you will be able to produce 15000 bbl/d in 2015, it much better to be clear on what you think you will produce next year, and how you will get there.
Happy to respond to any comments, and let's keep this board balanced, lately it has been a bit of hallelujah...
Darcy
Ps. Just so there is no doubt, SKO is my largest holding, some 12-13% of my portfolio