Well let's do a little simple math for the positive cash flow agruement.
Lets assume to be safe $75 BBL on the market
Jan 08 Production = 395 395 x $75= $29,625 month revenue + other revenue streams.
Couple of additional points to the above:
1. It is winter and with that expenses are at there lowest on an annual basis, why well it's winter and the plan is to be in winter mode for work activity.
2. Expense have decreased, all repairs have been completed that in itself goes to the bottome line.
3. Other income flows, this is an O&G company so the production may not be 100% of the cashflow but you can bet it is the majority on a % basis. But granted, there could be some other income coming in from, fix assets such as interest and maybe HMGP provided some sub-contracting services to other companies. That was indicated in the past as a possible option to get thru the winter.
4. YES the focus is on the progress and plans....why because it is the business plan...continue to ramp up production which increses month revenue
And finally, HMGP has 274 BBLS in reserve from Jan = $20,550 which IMO validates the 02/27/08 HMGP PR stated that HMGP has the funds to start new drilling in SEK which based on the NOI just filed in exactly what HMGP is doind, starting new drilling which will provided additional increase in revenue which will add to the increase in revenue along with the continued ramp up of other wells for procudtion increse....which.......
Well I will stop there.
Bottom line Cash Flow positive is Cash Flow positive
And in HMGP cases the explaination is pretty straight forward.
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