Persistent UnprofitabilityConsistent negative margins signal structural profitability issues: costs and fixed charges exceed revenues, impairing retained earnings and limiting reinvestment capacity. Over months this undermines internal funding for development, raises dependence on external capital, and increases execution and survival risk if margins don't recover.
Negative Operating And Free Cash FlowPersistent cash outflows from operations and declining free cash flow create an ongoing funding gap that must be closed via equity, debt, or JV monetization. This reduces flexibility to develop reserves, increases dilution or leverage risk, and is a durable constraint on growth and capital allocation for the coming months.
Very Limited Operational ScaleA four-person employee base indicates constrained internal operational capacity and reliance on contractors or partners for exploration, production, and compliance. Limited scale can slow project execution, increase third-party dependency, and heighten operational risk when advancing multiple field activities over the medium term.