RE:What to expectThanks, Shat, for your comprehensive overview of what to expect. I concur with your outlook and I hope your scenario evolves as you have explained.
I had a good laugh about your allusion to the lady of the night. You must recognize, however, that your message reeks as well. The difference is that yours is about realistic optimism. I have a friend whose favourite saying is “an optimist is as often wrong as a pessimist but far happier.” Like my friend, and presumably you, I prefer to be the optimist.
While I am writing, I would like to endorse nikehercules comment that this board is clean and civilized. Let all who arrive here keep it that way.
Finally, there is one other thing I would like to address that I think is important. Yes, well production rates at McKay (and Senlac) are crucial. However, we should look beyond that to the reason why. It can be summarized very easily – cash flow. In any commercial organization, happiness is a positive cash flow. It pays for everything – capital expansion, contractors, royalties, wages, suppliers, salaries, debenture payments, and may I be optimistic to mention it -- future dividends.
This board has been excellent at ferreting out information on events at the well head. However, I think we have not had sufficient critique about the effect on the income and balance sheet. I too expect a loss for the past quarter, but I will be trying to look into the figures to see how projected production affects the financial statements and cash flow. I welcome posts on cash flow effects.
It seems to me that STP has done a good job since last December to enhance itself as an ongoing entity – either by itself, as a joint venture, merger, or acquisition. If it is possible, I am biased towards STP continuing with their original plan, because I think that would maximize long term shareholder value. Nonetheless, I recognize that there are synergistic possibilities from a merger, joint venture or acquisition. Whatever happens, I hope all shareholders are well compensated for their support.