RE:the correctioncoffeeguy331 wrote:
the cash flow has exactly in it what is defined as cash flow. Cash flow is very often a very good indicator of company health. This correction shows us that the cash flow is goi.g in the right direction, indicating future health. This is probably a better indicator than the net earnings. I am still confused why elgaveeno thinks earnings from the sales should not be reported. That would be untruthful. Concerning your contention that they are using up assets faster than they are acquired? That is false. Good luck everyone. I buy a few sheckles worth every now and then. This is fun and exciting.
Let's just state again, that if QXP wants to press release a correction, whne there wasn't any need, then I think it is thay that are confused. They made 2 press releases, stating 2 different metrics.
Those metrics are poor, low decile for reporting issuers. The metrics are poor because the assets are old and tired. The Traffina assets they have been reactivating were shout off in 2012 when that comany became insolvent. Tunring tham back on was reflected in Q1 numbers, and they didn't move the netback by much.
The contention I think you might be referring to is that the decline rate of the reserves is around 23%. That is a fact. It is in the reserve report. if the company did nothing, the reserves in the PDP column go to zero in 4-5 years. In order to keep PDP reserves flat you would need to move proven but undeveloped reserves to the PDP by drilling or recompletion. Production declines are also roughly in step with reserve decline. so in order to maintain 1,000 Boe/d per year you have to "find" 230 boe/d every year.
As far as asset purchases are concerned, the biggest Albatross around their neck is the maintenance/abandonment liability. Most of the deals they have done have more than 75% of the purchase price accounted for as the abandonment liablilty. Pay $350K, account for $1.2M. Without signifigant devlopment dollars, those assets fully become liabilities.