Is the sale of NS in jeopardy? Seems counter-intuitive as the strengthening oil price should be a firmer floor beneath that for the prospective buyer.
That sale though is critical as it is intertwined with equity raising and the renegotiation of the RBL.
SSN saying PDP FV10 is at $62M (but that would include NS) but no mention of price deck - probably Strip pricing but also by now they would know what price deck MOB is using for their RBL portfolio. The sticky point may well be costs (but again that looked positive in the 10k) because that will determine the EBITDAX and one thing that has changed since Mar'16 is that the OCC (bank examiner in US an rough equivalent of our APRA) did issue those new guidelines and is requiring banks to properly classify their loan portfolios. EBITDAX ratio over 4.0x requires action by the bank (e.g. potentially requiring a loan loss reserve).
Sale should be closed 20th Oct - so not long to wait - and news on RBL & equity issue (if any?) should closely follow,
GFTA
SSN Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
