It's not the cash flow per se, it's profitability. Yes they do have some positive cash flow quarters recently but they are not in the black yet - and this is according to the BDC accounting method which is not exactly the same as the standard method. (Any accountants in the house?) We all want to see the BDC dissolved so that a clearer picture can emerge of their accounting sheet.
As Fish and others have pointed out, positive earnings - profit - have a major impact on share price. I tend to view profitability even more starkly (rather than as just a marker of quarterly performance) - but as a predictor of their ability to just keep drilling holes and to keep their operations running smoothly - and not needing to go to the bank or sell shares.
Yes we need to see what the proven reserves are. It's my understanding that one important way to demonstrate proven reserves is to keep punching holes and studying what comes out of them. And of course they need profits from operations to do that punching.
As far as depleting their reserves, I doubt if they have come close to depleting even 1% of what they have in the ground between their 7,000 BS acres and their 193 shallow well program. By the time they get to depleting 10% of it I'll probably be long gone.
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