Persistent Negative Operating And Free Cash FlowConsistent cash burn forces reliance on external funding—equity raises, asset sales or partner carry—to sustain operations. Over the coming months this increases dilution risk, can delay work programs if funding gaps arise, and constrains the company’s ability to self-fund exploration.
Large, Persistent Net Losses And Negative MarginsDeep, ongoing losses indicate limited operating leverage and negative returns on invested capital. Without a material commercial discovery or partner-funded development, profitability is unlikely in the medium term, reducing ability to reinvest and eroding long-term shareholder value.
No Confirmed Production Or Steady Revenue StreamLack of production means revenue is intermittent and largely dependent on one-off farm-outs or asset sales. Structurally this creates lumpy cash flows, greater execution risk for long-lead offshore projects, and sustained funding dependence until a project reaches commercial production.