I'm sure the bank would have access to detailed financials and several sensitivity scenario's around price, if that is the case and the facility was recently increased I am assuming they are comfortable (but watching very carefully) with the current plan. This assumption could be wrong.
Also if they needed money quickly they could cash in some or all of the current hedges and realise the gain and pay down some of the debt to improve the ratio's. Whilst not ideal because of op uncertainty it shows there are a number of option's available and the fact that 6 wells are not producing but sitting ready imo is an indication that the thinking is more about maintaining a consistent production level over the year than hitting a record boed number then suffering the inevitable decline. My guess is this production number has been worked out by the beancounters and forms part of the overall plan in adapting to the low op. Quarterly should either support or disprove this theory imo.
Interesting times for sure though
GLTA
SSN Price at posting:
1.2¢ Sentiment: Hold Disclosure: Not Held
