Yes MNut, its does say exactly that - sort of - as in:
"Given the curtailment of the North Stockyard drilling program, no further drawdowns are planned"
30th Jan, 2015
The Enercom PDF presentation of Feb 18, 2015 also has $17.5M debt drawn number and there are 2 slides that cover "Liquidity" (slides 27,28) - estimated as ~$11.8M
From my "Oil Expert - Terry Barr @ Enercom Video" post
http://hotcopper.com.au/posts/14848894/single and then the reference to further drawndown which is hinted at
http://hotcopper.com.au/posts/14850754/single
"2015 - small year for Capex" - "probably less than $5M" - and expecting to draw remaining $1.5M to the full $19M from debt facility..." .... for those that haven't watched & listened to the video its the segment from 3 mins to 3:30.
TB said
"...probably pull down the rest of that shortly and that's going to fund the company in the near term"
Based on that you would expect that this draw occurs in Q1 and the BB is fully drawn at $19M. That is a bit of red flag for me given what other oil companies are doing (i.e. selling equity and selling term notes to paydown BB because either the covenant is too tight and the reduced BB means they have to pay some back). Either TB/SSN feel they wont face this issue. Have to wait and see the results of the BB re-determination but based on a more current NyMEX futures strip price I think 1P Reserves will come in around the $22M-$25M mark. Lending at 60% LTV puts BB at $13.2M - $15M.
Going into Q1, SSN reported:
Cash of ~$3.9M
BB draw available ~$3.5M
Sales Revenue (not net cash) from the Dec Qtr ~ $2.7M
plus hedging revenue and JIB receivables (which is Joint Interest Billing for receivables and payables that SSN has with its partners).
Given the projected spend of $8.2M in the Jan Qtr things are getting very tight.
I'm tracking the cash margin very closely. Jan was a cash losing month (not enough production and low realized price). By my estimates it cost SSN $167,645 to produce those 17,785 BoEs
By my calculations, SSN needs minimum of 23,000 to be approx Cash Margin of $0.02/BoE produced (yes 2 cents). At 35,000 Bbls that becomes Cash generated $109,555 and QTD of ~-$58,090.
And if by March 70,000 BoE produced then the month of Mar contributes $1,227,038 (at WTI avg of $58 for month Mar and the Qtr avg of $50 - so ~$37 for WBS) for overall $1.169M in cash generated.
That production of 17,785 (Jan) and estimated 35,000 (Feb) and 70,000 (Mar) was done to get a Qtrly avg of 1,349Boepd to match the Enercom preso.
That's what I mean by tight (and the WBS price avg for 1st 2 weeks of Mar is $32.17)
Given TB said 2015 is a light year for Capex - around $5M - that can only mean a lot of capital is being spent on "maintenance capital" (like workover rigs for example) which shows up as operating expense.
Hopefully some clarity coming in SSN annc.
