Take on the Q2 update Great, acceptable and meh
revenue was stellar. We knew from some updates that they were getting premium pricing but 5.00 over nymex in August was truly spectacular.
production was a little lower from Gwinville because two of the laterals missed part of the formation sweet spot. The production level is acceptable and should help with future drilling. Compared to Canadian wells the ROI was still good. Of note was that only 20% of drilling fluids cleaned up so far. The company is prohibited from providing forecasts due to the AIM listing - wonder if the wells are still choked back aggressively which might mean either more production is coming or the decline rates might be lower.
with the above numbers cash flow was 3.6 million for the month so payout on all three wells will be around 4 months. Again stellar.
the capital program of 34 million was a bit meh for me sa I thought they had more local infrastructure available. Hopefully it means future capex is mostly going to be drilling.
Nice to see a big increase on the credit line limit.
all in all a great update there is really nothing quite like it trading in canada particularly in their region.