Don't think they would ever have contemplated $40M in one hit -...

Don't think they would ever have contemplated $40M in one hit - would have been a facility with multi-tranche draws.

Note the wording "... recent successes at its Eagle Ford properties in Texas, Mississippi and Kentucky have resulted in rapid production growth and an increase in its reserves base."

Like I have been pounding the table on - LENDERS DON'T GIVE A HOOT on a Resource or even 3P or 2P number - and neither should investors (speculators yes...).

IMO, that is why you see no mention of Pathfinder - even though it has a discovery.

I'll take it that the Chase Bank facility is quite small on 1P 1,866,354 Bbl oil of which 82% is PUD. Guess that the 333,109 Bbl oil of 1P (PDP+PDNP ) might secure around $5 - 8M (just using a value of $25/Bbl and then LTV of 66% which is the low side).

The fact the amount is not disclosed suggests it is small. Also what is the 3.5% interest margin based on? LIBOR, PRIME, sub-prime,....

Implication is possibly a placement for further Pathfinder EXPLORATION.

Wonder how the stock will react...