Ann: Increase in Borrowing Base to US $122.5 Million, page-9

As I noted previously ebitdax is likely to be 80+/- 10% as compared to a company forecast of around 110 ie 30m short. So it is good that we get this and was expected in fact I mentioned b4 that prob go up to 120. 

I dont really see a problem with that as long as they stay financially disciplined. ie it a buffer although will be used imo. Thats OK we just need to get to self funding position by end next year w/out blowing out debt and defintely not tapping s/hldrs again.
Co noted that they changed to hedges based of LCO rather then wti - with the spread at 10$ thats a good and of course they get LLS pricing.

From Morgans latest report it was quite funny that they mention hedges because last year they were saying they liked unhedged oil companies - but will not go into that as I think everyone who knows anything knows that analyst has lets say  - a lot to learn.

Not to worried abt oil price at moment as long as opec cut 1.4mln barrels as suggested in press but would not like to see it this low for extended period.

Again management need to manage cashflow alongside prodn profile correctly - they do that and we back over 10c. I would say 6.9c is a good entry price