Financials and MD & A is up on Sedar Things look fine, 1000 boe/d, 3 wells being drilled this year that NO money needs to be raised for, costs being cut everywhere, money in the bank, working capital of $2.2 million. Things are looking great except for the stock price. I grabbed another 600k on Friday and will hold it along with the rest of my shares.
Outlook
The Company’s capital expenditure program for
2
0
1
5
is approximately US$2.7 million.
The Company incurred capital expenditure of US$0.2 million during the first quarter of
2
0
1
5
; this comprised US$0.2 million for
Shukheir Marine, US$0.1 million for South Disouq offset by US$0.1 million of reversing
2
0
1
5
drilling accruals for NW Gemsa.
The Company’s forecast capital expenditure program for the year for NW Gemsa is US$1.7 million and includes, but is not limited to,
the drilling of 3 development wells and 1 water injector recompletion. The Company had US$0.1 million of reversing drilling accruals
during the first quarter of
2
0
1
5
, and the budget of US$1.7 million remains in line with the forecast capital expenditure program.
Capital Resources
As at March
31
,
2
0
1
5
the Company had working capital of approximately US$2.2 million including cash and cash equivalents
of US$3.1 million and restricted cash of US$6.0 million. The Company expects to fund its
2
0
1
5
capital program through funds
from operations and cash on hand.
As at March
31
,
2
0
1
5
, the Company had US$6.8 million in accounts receivable outstanding, both current and non-current,
compared to US$8.7 million as at December
31
,
2
0
1
4
. Approximately US$5.8 million is due from the government of Egypt
controlled corporations for oil sales; US$2.8 million is expected to be received in the normal course of operations; the remaining
US$3.0 million is with-held as a production guarantee for the work program of the South Disouq concession.
As at March
31
,
2
0
1
5
the Company has US$8.9 million in amounts drawn from the Facility, consisting of i) US$7.1 million under
Tranche A and ii) US$1.8 million under Tranche B. Approximately US$6.0 million of the Facility was utilized to put in place
bank guarantees related to the South Disouq work program, US$1.5 million towards the signature bonus for the South Disouq
concession and the remainder for general and administrative expenses for the Company’s corporate office
Subsequent to the end of the quarter, the Company cancelled US$6.0 million of bank guarantees, held by HSBC as restricted
cash, upon confirmation by the Egyptian authorities that the Farminee of the South Disouq concession had successfully
replaced work program guarantees originally posted by the Company. The restricted cash was returned to the Company after
the period end and used to repay US$6.0 million of Tranche A debt under the Facility. Amounts drawn under the Facility as of
the date of filing the
2
0
1
5
Q1 Interim Report are US$2.8 million. With a further amount of US$0.8 million due to be repaid on
June 1,
2
0
1
5
when the debt position, under the Facility, will be US$2.0 million.
As of the date of the MD&A, May 28,
2
0
1
5
, the Company collected US$0.8 million for the government of Egypt controlled
corporations.