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1.3¢ otto energy limited

The guys managing OEL should be shot. I think it's a...

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Ovoidhead

180 Posts.

33

26/03/20

00:04

Post #: 43701475
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Originally posted by brucesterfer: ↑

I wouldn't expect the covenants to have a clause on market capitalisation.

From the debt agreement announcement only a few months ago (!!) the due diligence was performed on the underlying assets that were secured against the loan and hence OEL management touting that the MQ DD was a testament to the underlying portfolio strength of OEL.

Who knows, maybe this capital raising won't be to pay down debt and is only a few million to make things more comfortable but given it's right before quarter end covenants, I expect it will be.

I suspect F5 failure was the straw that broke the camels back as the cashflows are now substantially less.

If I had my way, I would:
- Cash in all hedges
- Cut board and management back along with pay
- Raise sufficient cash to enable payback of the MQ loan. Trouble is the loan is only payable after 12 months.
- Reduce production at SM71 to hedged position and wait for a better day of prices. BYE won't be up for that though. I wonder how long before they breach their covenants....

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The guys managing OEL should be shot. I think it's a disgrace they have jobs when they have performed like donkeys.

OEL Price at posting: 0.8¢ Sentiment: Sell Disclosure: Not Held
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(20min delay)
Last 1.3¢		Change 0.001(4.17%)		Mkt cap ! $59.93M

Open	High	Low	Value	Volume
1.2¢	1.3¢	1.2¢	$1.222K	100.2K

Buyers (Bids)

No.	Vol.	Price($)
1	86	1.6¢

Sellers (Offers)

Price($)	Vol.	No.
1.2¢	85	1

View Market Depth

No.	Vol.	Price($)
7	3389852	0.012
14	16718406	0.011
6	8650000	0.010
1	500000	0.009
1	125124	0.008

Price($)	Vol.	No.
0.013	2165483	6
0.014	9832136	12
0.015	5177986	9
0.017	433300	2
0.019	1500000	1

Last trade - 15.59pm 11/11/2024 (20 minute delay)

OEL (ASX) Chart

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