"The current borrowing base was set in March 2013 based on the Company's reserves as at 31 December 2012. The Borrowing base will be re-determined in March 2014 using the Company's 31 December 2013 reserve report which will include reserves added from the Texon merger and from drilling and development activity that occurred during 2013".
Post-poning the IPO shouldn't create any financial issues with SEA, although it'd be good for it to eventually go proceed.
As of 31 December:
Cash on Hand = $96 million Borrowing available = $33 million Revenues from current quarter = $35 million (my estimate)
Expenses from current quarter = -$90 million (SEA's forecast)
That leaves $74 million available, before a likely approx. $40 million Bakken Goliath Sale, and what I'm guessing might be another $100+ million available from the borrowing facility after the massive impending reserves update.
So SEA should not have any short-term issues with covering operational capital (they'll obviously have to commit to the non-IPO case drilling program), I just hope it doesn't jeopardize their position for accretive acquisitions.
SEA Price at posting:
$1.01 Sentiment: LT Buy Disclosure: Held
