Lets see, what's worth highlighting....
This is all excluding FB production which was not disclosed as acquisition closed Mar 31 and had no impact.
1. Dramatic Reduction in LOE to $8.58/BOE (down from $12.38 in the Dec Qtr)
2. Cash Costs (excluding interest payments) totaled $8.58+$2.96+$15.74 = $27.28/BOE
3. Avg realized sales price for oil (before hedging) = $22.91/Bbl (Bakken discount alive and well I see)
4. Avg realized sales price for oil (after hedging) = $36.69/Bbl
5. Avg realized sales price for gas = $1.69/Mcf
As predicted, SSN (again) breached their EBITDAX covenant but were given a pass by MOB (also as predicted given the acquisition). They did not give a multiple as I suspect it may have even been negative.
6. Shareholder Equity has declined further, now at -ve $1,451,469 as at Mar 31, 2016. This would not include the capital raised from sale of equity in April or the Halliburton payment also received in April/
7. No mention of NYSE:MKT delisting plan submission.
8. With respect to FB we are reminded of
"On March 31st, we closed on the acquisition of 51,305 net acres of oil and gas leases, producing oil and gas wells, currently shut-in wells and associated facilities in North Dakota and Montana for a cash price of $16.0 million. The properties produced approximately 720 BOPD from 41 net producing wells, based on pre-acquisition data. Netherland Sewell & Associates have estimated that the properties contain Proved Reserves of 8.5 million barrels of oil with a Net Present Value of $84.9 million as at October 1st, 2015, the effective date of the transaction."
But I believe this is the first time I'm seeing this (apart from the ONEOK agreement termination).
"Approximately 65 wells that we acquired in the Foreman Butte Acquisition are not currently producing or are shut-in. If we are unable to return these wells to production within 12 months, the North Dakota Industrial Commission (“NDIC”) may require us to permanently plug and abandon them. In addition, certain of the acquired wells were previously subject to a gas gathering agreement with ONEOK Rockies Midstream, LLC that was terminated on February 29, 2016. The seller in the Foreman Butte Acquisition entered into a thirty-day temporary agreement that expired on March 31, 2016, and we are in the process of negotiating a new long term gas gathering agreement for these wells. If we are unable to successfully negotiate a new gas gathering agreement or obtain an extension of the temporary gas gathering agreement, we will be forced to flare gas produced from certain of the acquired wells, which, in turn, may require us to shut-in part or all of these wells in order to comply with applicable NDIC anti-flaring regulations."
9. MOB Credit Facility Term has not been extended (yet). Maturity remains Jan 28, 2017.
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