In the future, I will continue to review this 10-Q as time permits. But for now, a few more comments regarding Gulfslope’s March 2022 10-Q.
I, like most of us, am not a geologist. But I have been curious about the target layers known as M1A-M6. Something that had not been confirmed in 10-Qs prior to this one, and I quote, is that the “Tau prospect extends over BOTH Ship Shoal lease Blocks 336 and 351”. This statement was actually mentioned twice in the latest 10-Q, validating the idea of the existence of Recoverable Resources in both blocks. I was hoping for some clarification that this was the case, and they did.
The Tau 1 well was drilled from Gulfslope’s surface location at SS, Block 336 which is the lease that will be allowed to expire. But the remaining lease is Ship Shoal, Block 351, G36121, which will not expire until October 31, 2025. Please note, although the drill bit NEVER entered the deeper layers of SS Block 351, the majority of the Tau 1 well costs were capitalized to this block. In my opinion, this is an indication that Block 351 was determined to hold the targets with the most financial potential, or this would not have been done. This was the reason I was hoping for the clarification mentioned above.
Reminder, Gulfslope still has assets (9.1 million in Oil and Gas Properties, 13.5 million in Net Deferred Tax Assets, and some Common and Preferred Stock). So there should be a way to create more working capital while carrying over any remaining financial obligations. Also, the majority of the working capital deficit (90%) is Related Party Loans and Payables owed mostly to Mr. Seitz.
So as spec said, the game continues. On to extra innings.
Mrs. Smith
