CASHIt's all about the cash. With $105 million working capital after 7 months and a $200 million CAPEX budget, the question becomes how much cash will VLE exit the year with?
I'm waiting before buying any more. The $400 million OPEX/CAPEX budget doesn't include royalties and tax. With oil down, 20000 bopd leaves about $200 million pretax cash after CAPEX using the 51% formula and deducting $200 million CAPEX and adding current working capital. After tax would be $100 million left and this is a 12 month projection, not 9. Nine months would be less. Not enough for me right now.