Ann: NMPP Regional Exploration Update, page-70

Hey Anti,
it was an interesting interview. Not sure there was much new information, albeit, a hard figure of $120m for the expanded debt facility stuck out, though Nic has probably mentioned it before. They did not talk about CAI at all which annoyed me, especially when the Crux guy 'prides' himself on asking hard questions... Plus, the $7m or so in value of CAI is now gone... which could have been used to reduce the size of the debt facility (yes, he recently explained why they had not tried to sell into the market, but..... it still would have garnered more than zero....).

I did find it reassuring that the debt facility and requirements are much less erroneous that what developers would face, though if I can be honest, I dislike how cavalier he is about taking on $120m in debt. Because for one, it still does not reassure me that ALK won't add further hedging, which.... is partially what brought CAI to it's knees.

After running some basic numbers, ALK does need the larger debt facility, because they are already in debt, plus the cost of the $3000 options was not cheap (but... I am not against them). We all know that ALKs major holder cannot afford a raising, so.. debt is the only option. Nic argues that if they keep delaying, nothing will get done, which is true, but.. would a slight delay allow a greater cash build... less debt?
hmmm...

I so want to add to my holding, but Nic articulates why many insto's are not buying.... which is good to see honesty, but... what about potential measures to mitigate it (perhaps Boda is a decent start).

Perhaps I am being too pessimistic, if Roswell performs and the quarterlies start improving, then maybe the market will take more interest.