CALGARY, Alberta – In the wake of getting hammered on the Toronto Stock Exchange over the past 9 months – thanks to missing capital guidance on 3 consecutive quarterly reports – Calgary-based HighCapEx Resources has recently announced to its shareholders that it has streamlined its AFE (authorization for expenditure) process with a one-stop Money Button.
The board of directors directed me to do something, because over-spending quarter after quarter is no longer acceptable – it has to stop. So a few months ago we senior officials decided to implement a button similar to the one you see in those Staples commercials, but instead of making things easy, they make getting money easy, but with a huge downside if money is overspent.
Our old system of capital management had too many layers of authorization that ultimately slowed AFEs down to the point of us not being able to keep track of spending. – Matthew McBricker, President & CEO, HighCapEx Resources
According to the company’s announcement, HighCapEx has sub-contracted Josh Groberman of Grobes Media Inc. to develop special 4″ diameter buttons that are wirelessly connected to the company’s AFE management software system. The button will be equipped with a tiny keypad and LCD display. A button will be assigned every employee with capital budget spending authority, namely project managers/development engineers, business unit managers, and lower-level vice presidents.
The idea is that an eligible employee will key in the amount of money required for a capital expense and then press the big red Money Button. Within seconds, an AFE is automatically created, approved, and transferred – instantly. By expediting the AFE approval process, senior management expects to stay on top of AFEs instead of having them go stale in its AFE Ceeyalater software. But the consequence to overspending, or botching the job is simple – the employee is instantaneously fired. Period. No questions.
This system is great, but I’m not sure if I like the risk of getting canned for going over budget or not meeting P50 expectations on the wells my team drills. I think I’m going to hang tight for a while, but I have a development plan that I need to execute, and for that I need money, so I’m staring to fall behind on my Gantt chart. – Thomas Laycock, Senior exploitation engineer, HighCapEx Resources
Although investors originally thought that the Money Button AFE Approval System would be HighCapEx’s saving grace, they are starting to become a little restless seeing as the company has yet to spend a penny thus far in 2014 Q1. “I really wish the company would start spending some money, because you have to spend money to make money, and they ain’t spending nothing. And the last time I checked, it costs money to drill a well.” – investor.
After hearing of this announcement, Allison Redford contacted Grobes Media Inc. to see if the startup can build a number of Money Buttons for her and her government. But a mixup in the design requirements between Grobes Media and the Province resulted in the company delivering a Money Button that, when pressed, provides an taser-like electrical shock to the presser.