OSH have quite a low cost of production. If Brent is at $20 a barrel (which it currently is close to), they wouldn't be losing much money on an operating basis. The real problem is that OSH has a large debt burden with debt payments due this year and next (worth checking, but this is what I recall...), and also needs to fund it's future exploration and development projects in Alaska and PNG. At current prices it won't be generating enough money to repay its debt or continue exploring and developing adequately, which is why they recently raised capital.
A key thing to consider is that OSH make most of their money from LNG, and the prices for LNG they receive are based on oil prices, but lag 2+ months behind. So it is going to get worse at OSH before it gets better...
Hope that helps.
OSH Price at posting:
$2.50 Sentiment: Hold Disclosure: Not Held
