Ann: Debt Refinancing and Drilling Program Update, page-8

BYE management is in a classic position of evaluating competing options.

It is a fact that the oil sector is on the nose with lenders at the moment so it is likely that their funding proposals/term sheets are on the expensive onerous side. BYE management has to decide whether the best outcome for BYE is to drill SM69E out of cash flow or to bring it forward with other drilling at SM58. There will be many factors to consider including relative confidence at SM69 alone versus the options at SM58.

The announcement makes sense and has stated categorically that drilling SM69 will occur at the latest in July but multiple holes may begin earlier if they decide to go with an acceptable term sheet. It is a process and these guys are managing it sensibly. The good news is that BYE is doing fine.

In my opinion it is still the most undervalued oil stock on the market. The bleating on this site by the usual suspects notwithstanding. It reminds me very much of the situation of junior coal miners back in early 2001, except that now the oil price is strong and then the coal price was not.