My (amateur) reading of this is that Vega, Persimmon and Katherine Brown are toast along with the investment that went into them. There was no reference to recovery options, only "could have" actions.
Depending on the faulting and the consequences of the fraccing, the lease area in proximity to those wells may also now be useless. After TAMU is completed, perhaps the Upper EF levels will be drilled.
This was not a financial report, but we now know that WF want perhaps a quarter or a third of their money back within six months.
It is blithely stated that the TAMU wells will be completed and producing by year's end; the contractors will also want their money.
Is this achievable from cash flow?
If not, shareholders will be asked to either stump up or also drop into the toaster.
FDM Price at posting:
2.4¢ Sentiment: None Disclosure: Held
