Ann: Credit Facility Amendment, page-30

Sounds like a certain GOM oiler who had to give away half of the company for a pittance to stay afloat.

The 1900 boepd is an average across the quarter, so as long as one project stays online we should be fine. Both Lightning and SM71 are churning out around 1500 bopd net to OEL on a WI basis. My only concern is if they take Lightning offline to drill another well and then BYE forces their hand on F5 - with SM71 being simultaneously shut in. Prudent management would push for an F5 re-entry asap do as to give flexibility around Lightning timing. On paper success at F5 would see the SM71 project single handedly meeting the conditions of the loan covenant.