They won't be drilling Angola again for 2-3 years. Only hope for a bump in share price near term is if Total hits something in Mutamba. They gave away half the Mutamba concession to Total if Total would do the drilling.
Which 8K filed in May?
That's pretty good pay, of course she's been there since 1986 and is probably a key person. If you think it's too much make your case.
Stock went into free fall because the Kindele well turned out to be a duster. If they had hedged a large amount of production at higher prices it surely would have helped. But for these smallish companies it's not usual to hedge unless it's called for as a condition of financing. What would you do today? Hedge or not?
Hindsight is 20/20. Would you suggest hedging now? At these oil prices? Would the wrong choice today be a mistake tomorrow?
Why have 2 people with impressive accounting skills? They should have at least 2! You gotta have more than one set of eyes on the books. It's normal to have a CFO and a chief accounting officer in a corp or any size. And several good accountants working under them.
They will probably rebalance the other wells down a bit to keep production at the numbers they have given as guidance for 2015. Rebalancing the other wells helps conserve the resource and increase EUR.
ARRGGAGHHHH!!!!! You got me again!!!! Why do I come here for this torture????
That was Killer! You really told him and impressed the hell out of everyone else reading this board I'm sure of that.
The Etame partners are not the Gabon gov't. EGY is a 28-31%partner in the Etame concession. The partners all owe their share of the 2 platforms and the associated development wells. The partnership then gets a "tax credit" for the development and operating costs of producing the oil. Once the 'tax credit" or 'cost account' is used up the Gov't of Gabon gets about half the revenue, (in the form of taxes due) from selling oil from the etame concession. Vaalco can hold back the partners share of oil revenues until the accounts are squared. Basically, you need to separate the idea of Vaalco's partners from the Gabon Gov't.
The conference call was good. They were drilling Kindele, the drill bit just a week or two away from total depth. Insiders were buying shares on the open market. They were getting hydrocarbon shows from the drilling. But, got a bad drilling result so I lost a buck a share. The share price had already tumbled on the non-cash write down. It lost another buck on the Kindele result.
The well failed in Q1'15. Expect an $18-20 Mil expense, they use the 'successful efforts' accounting convention. Had they found oil the cost of the well would have been carried on the books as an asset purchase.
Show me more-- where is the quote? I thought it was a good bet on a drilling operation given all the insider buying at the time. The insiders thought they had a winner with the hydrocarbon shows as the drillbit went down. I admit to having enthusiasm at the time. But the result was disappointing.
I clearly said buying in the 3's was a bet on the drilling in Angola, never that it was the best deal since sliced bread. And yes they should continue the multi-year capex program in conjunction with their Etame partners that involved 2 platforms, 6 development wells. I bot in after the price drop from the non-cash impairment charge.
There are reasonable times to be spending larger amounts of cash flow than you generate over a period of time. Such as with a long term investment involving construction or development or asset acquisition. There will be quarters when capex spending is more than cash flow from ongoing operations. To make such sweeping blanket statements is just nonsense. If you buy a house you spend many times your cash flow in the current quarter. If you drill 6 development wells as part of a multiyear capex program you will spend more than the current quarter's cash flow.