Morgans interpretation of Operational Update, page-27

On $40 oil .but ... I didn't realize you were going that low. Are you short oil futures?

And like I said for me its 16 wells = $93M with the 16 new wells coming from a determination of production decline and amount to roughly be replaced.

We all get to our numbers in different ways. How you arrive at yours I don't know. Each to their own methods. I suppose its a good thing they are in same ballpark but geez $40 oil is painful for the future (2020 +) year production of those wells.

Now on liquidity, given the low scenario (i.e. drilling 16 wells) what are you calculating that causes a redermination as having a liquidity problem. I know how they work, so no need to explain part. With 16 wells they really shouldn't even draw down any additional funds.

Do we know for sure whether the test in SEC 2018 Front Month based or NYMEX strip for BB purposes. SEC deck isn't that bad. They reference PV9 of NYMEX Strip in the covenants but not the deck used for BB.