Q2Today is the first day of Q2
This is the break up quarter. Road access is limited for heavy equipment so drilling stops
There is plenty of work that can be done - seismic, well licencing, but most of this is not capital expenditure, so expenditure is relatively low this quarter.
At the same time, this quarter tends to get the full benefit of additional drilling / tie-in / sales from drilling in Q1 - ie this is a cash cow quarter.
I'm hoping for production around 31,400 boe in Q2. Its at least a month too early to guestimate what it may be.
I'm also hoping for WTI to average US$97.5
It may be that production is a bit lower, and price is a bit higher, or vice versa.
Either way, that type of combination may result in FFO higher in Q2 than Q1 - maybe around $143 million ish (before performance costs)
That looks like $100 million plus less debt to look forward to this quarter. (thats a decent interest rate saving)
The other thing to look forward to this quarter, is the refinancing of the debt from bank borrowing to debintures. That means the no dividend covenant (or equivilant) will be eliminated - allowing OBE to jack up the share price by introducing a dividend of sufficent size to accomplish the job (win and win for shareholders, and exexs). Its hard to guess when this will happen. It appears to be a mid year event - ie end of Q2 or start of Q3. I'm hoping for June 2022.
The last thing I'm looking forward to this quarter, is an increase in the Expenditure budget for Q3 and Q4.
This could be the tipping point quarter.