Tekoil & Gas Corporation announced that for the first time since acquiring its four fields in Galveston and Chambers counties in Galveston Bay, Texas, it had a positive net operating cash-flow of $242,676 (unaudited) for the month of February, compared to net operating losses of ($538,894) (unaudited) for the month of January, and average operating losses for the prior eight months of ($434,460) (audited). The company said that, barring unforeseen events, it expects to remain operating-cash-flow positive going for the foreseeable future.
Mark Western, the company's Chairman & CEO, stated: "This is a massive step in the right direction, especially given the financial restraints and resulting capital expenditure limitations we have suffered. We have managed to bring production up slightly while implementing much tighter controls and cut-backs in field operating expenses."
Western added: "We are now in negotiations with potential industry partners in order to (i) enable us to finance the redirection of production at Red Fish Reef's Cedar Point to Smith Point, with the expectation of reducing operating expenses by an estimated 40 percent; (ii) increase its salt water disposal capacity at Red Fish Reef, with two salt water disposal wells on the platform; and (iii) implement an aggressive work-over/recompletion and drilling program intended to bring up production."
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