Quattro Exploration and Production Ltd QEXXF

RE:RE:RE:RE:RE:RE:Q2

[elgaveeno]

Q2 was only $0.02 of earinings. The other $0.09 was from Q1 and that was discussed at length last quarter as they included over $3M of "tax recovery" in their earnings. You will see that they had to put some of that back into the bank in Q2, and subsequently they only did $631,739 in Q2 income. 

G&A is up from $350k/Q1 to $500k/Q2. Financing costs are double, depreciation is up to $1.1M/Q2

Those additional 250 BOE didn't add much revenue or profitability to the equation.

Those impressed with the cash flow, must acknowledge that QXP have yet to spend any development capital, which will come right out of earnings at some point.

The liability Davpro, is the $22M of decomissioning liability and the sheer amount of old tired facilities they purchased. Their utilization rate is poor at best.

The real reason this is a dog and not getting rewarded is that they have promised production, and missed it. It's the biggest sin in the markets. They still haven't addressed "how" they will get to 2,500 BOE by the end of the year with 1 exploratory well and 4 Wabaskaw wells. The Wabaskaw wells are by no means a sure thing, in the middle of nowhere, and even the best of the offsets is 50bopd. Those wells have not even been licensed. So the company is not telling the truth about where it's production is, what else is it not telling the truth about?

To buy the 1000 boe/d will cost between $50M and $100M depending on oil or gas. Super dilutive. Don't see it.