Financial Condition
In FY19 operating activities provided
The Company is likely to experience negative cash flow from operations unless
and until the Company invests in interests in producing oil and gas wells or in
another venture that produces sufficient cash flow from operations. With the
exception of capital expenditures related to production acquisitions or drilling
or recompletion activities or an investment in another venture that produces
cash flow from operations, none of which are currently planned, the cash flows
that could result from such acquisitions, activities, or investments, and the
possibility of a material change in the current level of interest rates or of
oil and gas prices, the Company knows of no trends or demands, commitments,
events or uncertainties that will result in or that are reasonably likely to
result in the Company's liquidity increasing or decreasing in any material way.
Except for cash generated by the operation of the Company's producing oil and
gas properties, asset sales, and interest income, the Company has no internal or
external sources of liquidity other than its working capital. At
The Company regularly assesses its exposure to both environmental liability and RR&D. The Company does not believe that it currently has any material exposure to environmental liability or to RR&D, net of salvage value, although this cannot be assured.
Results of Operations
In FY19 the Company wrote down the carrying value of it oil and gas properties
by recognizing an impairment provision of
At the current levels of net oil and gas production, cash balances, interest rates, and oil and gas prices, the Company's revenue is unlikely to exceed its expenses. Unless and until the Company invests a substantial portion of its cash balances in interests in producing oil and gas wells or in one or more other ventures that produce revenue and net income, the Company is likely to experience net losses. With the exception of unanticipated RR&D, unanticipated environmental expense, and possible changes in interest rates and oil and gas prices, the Company is not aware of any other trends, events, or uncertainties that have had or that are reasonably expected to have a material impact on net sales or revenues or income from continuing operations.
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