Blackpeter agree with your comments and yes , Tap had 36.5 mil in cash as at 30/6/2015 with 55mil of debt.
Assuming oil prices remain as is and with hedging, I have a few comments and rough calculations of my own !
Tap have previously stated they plan to have debt reduced to 40 mil by the end of this year. (fact)
On that basis the new facility for 55mil will be drawn down to 40mil, leaving an undrawn portion of 15 mil.
Let's assume they make 22 mil profit from Manora over the back half of this year and that gas sales more than cover overheads for this period, (as per your calcs.)
By my reckoning, at the end of this year Tap will have 42 mil in cash and a debt of 40mil with 15 mil of undrawn debt with the new lender. Tap will be net debt free and will be worth the value of its assets going forward.
On the same basis by the end of 2016 Tap could be DEBT FREE and have 40 mil cash in the bank and an undrawn debt facility of 55mil. (Solid as a rock)
No wonder Riso and NGP want in, they have personal knowledge to draw on and know the capability of this company !!! They must be laughing all the way to the bank !!!
Put your hands up if you are a seller at this price as you need help !!!
TAP Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
