Glotec's FY16 annual report shows RM 256 mil revenue, RM 16 mil net loss and RM 54 mil cash.

With 45% share in Tanjung Enim PSC, Glotec will need to fork out RM 315 mil out of the RM 700 mil for the 250 wells.

The amount invested in exploration so far is nowhere near the 350 mil and the cost recovery will not be able to cover even a fraction of this investment cost.

With Glotec's current unprofitable small business scale, the big question is how are they going to get the funds to drill the 250 wells.

Do they have a real plan to commercialise???

Very good questions Leoleo.

This is the logical questions that Glotec should answer in order to convince us the stock is worth investing rather than the common statements CBM will commercialise soon, good prospects ahead etc.

The bottom line is we need to know how much revenue is NGY is able to realistically able to generate and profit projection. Also a realistic commercialisation date with so many delays so far.

I was informed by someone familiar with O&G, POD process requires approvals to be obtained at various level, depts before final submission. Glotec local partner Bukit Assem's website mentions plan to commercialise CBM in 2019. There is always risk investing at this stage. There price may spike on any +ve development. On whether the price hike will sustain also depends on the ability to achieve profitability after commercialise.

This round looks more like goreng as production will only start in 2018 if development plan is approved. If you have bought at high price, no harm to hold on. Glotec seems to be focused on making CBM a success.




goInvest (Cut or Hold???) I also waiting someone guide me...what should we do now? this round goreng finish? Or still got chance to get back money?

It will be very nice if UEMS were to bid and win the Bandar Malaysia project.

The was a plan about submitting for plan of development by end 2017 before actual production. The company value should only be raised after successful production

What is the usual profitability of CBM companies in US and other countries?