Hopefully the link works. I find the 10K more useful than the AR. Encourage holders to read a review, especially the bit around Reserves, calculation of their value, Debt facility, and general operating accounts (as in what is cash cost, operating cost, full cost) and of course the price received.
No real surprises (especially if you even half believed what I've posted in the past).
Capex plan for 2017 (i.e till June 30, 2017) is $1M ... so keep that in mind when you start counting future production. Its all targeted to Foreman Butte
Always some cautionary commentary ... this one worth repeating
" Liquidity
Following the sustained decline in oil prices, the Company became out of compliance with its loan to value ratio with Mutual of Omaha Bank. The Company is required to pay down $11.5 million of the proceeds from the pending sale of North Stockyard to Mutual of Omaha Bank. The Company is also required to raise $5 million in equity prior to September 30, 2016. The Company raised $1.4 million in equity in April 2016 and we have been granted an extension in this deadline to November 15, 2016. It is expected that Mutual of Omaha will also apply the remaining proceeds from the North Stockyard sale to this equity raise, however that is not certain. Following the pay down of the facility from the proceeds from the pending North Stockyard sale, the Company intends to enter into negotiations with Mutual of Omaha Bank to renegotiate the term and conditions of its credit facility, including the current maturity date and covenants. While the new borrowing based is currently being determined by Mutual of Omaha Bank, based on the Company’s proved reserves the Company expects the borrowing base will be in excess of the current drawdown creating additional liquidity in the facility.
Should the Company not be able to renegotiate the credit facility to its satisfaction the Company may need to consider further asset sales or capital raises to provide the Company with ongoing liquidity to repay its long and short term debts as and when they fall due."
SSN Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
