Rey Resources Reports A$89K Operating Cash Outflow, Holds A$6M in Loan Facilities
Rey Resources reports continued exploration progress in Western Australia's Canning Basin alongside a stable financial footing supported by substantial shareholder loans.
- Net operating cash outflow of A$89,000 for Q2 2025
- Cash balance of A$203,000 with A$6.01 million in available loan facilities
- Ongoing 2D seismic reprocessing on Fitzroy Blocks EP457 and EP458
- Active land access negotiations and environmental planning for Derby Block EP487
- Related party payments totaling approximately A$44,574 during the quarter
Financial Overview
Rey Resources Limited has released its quarterly cash flow report for the period ending 30 June 2025, revealing a modest net operating cash outflow of A$89,000. The company’s cash position stands at A$203,000, bolstered by available loan facilities totaling A$6.01 million from two substantial shareholders, ASF Group Limited and Wanyan Liu. These unsecured loans, each accruing interest at 12% per annum and maturing in April 2026, provide Rey with a strong liquidity buffer, underpinning its ongoing exploration activities.
Exploration Progress in the Canning Basin
Rey’s core focus remains on its oil and gas interests within the Canning Basin of Western Australia. The company continues to advance seismic reprocessing efforts on the Fitzroy Blocks EP457 and EP458, with results anticipated in the next reporting cycle. This work is critical for refining subsurface models and identifying prospective hydrocarbon targets.
Meanwhile, at the Derby Block EP487, where Rey holds a 100% interest through its subsidiaries, the company is actively engaging with Native Title holders and landowners to secure land access necessary for a committed 3D seismic survey. An updated environmental plan is also underway, reflecting Rey’s commitment to regulatory compliance and sustainable development practices.
Coal Project and Corporate Activity
In addition to its oil and gas ventures, Rey is progressing the Duchess Paradise Coal Project, a bituminous thermal coal operation adjacent to its Fitzroy Blocks. The company has responded to Native Title Holder feedback following the receipt of the relevant protocol, although no further communication has been received to date.
On the corporate front, Rey paid approximately A$44,574 to related parties during the quarter, covering consulting and director fees. The company’s capital structure remains stable with over 211 million ordinary shares on issue as of 30 June 2025.
Outlook and Funding Position
With estimated funding available to cover more than 27 quarters at current expenditure levels, Rey Resources is well-positioned to sustain its exploration programs without immediate capital raising. The company’s prudent financial management and ongoing shareholder support provide a solid foundation as it advances its asset portfolio in a competitive energy sector.
Bottom Line?
Rey Resources’ steady cash management and active exploration set the stage for potential value creation as seismic results and environmental approvals unfold.
Questions in the middle?
- When will the results of the Fitzroy Blocks seismic reprocessing be released, and what impact might they have on exploration strategy?
- How will ongoing land access negotiations and environmental planning affect the timing of the Derby Block 3D seismic survey?
- What are the company’s plans for managing loan repayments given the April 2026 maturity dates?
