Way Oversold, page-2

Sector Lead,

A$7.5M on Conv notes + A$4.5M on ordinary shares = A$12M spent from the kitty. I'd say when you take off the A$5 listed as required in Q4 from the last quarterly report the total cash left is under A$15M @ 31/12/14

They are not leveraged to the oil price in the Permian because they have virtually no production.

Breitburn are currently highly leveraged, $2.15B of debt and a market cap of under $1B. Cap Ex is dropping from $375M to $200M in 2015 and that amount is required to maintain its holdings, ie minimum expenditure required otherwise it might have gone for lower capex.

Already projecting a net loss for 2015 (see note 7 of there announcement)  & the Liquidity note is of real concern. http://ir.breitburn.com/releasedetail.cfm?ReleaseID=889287

The hedging helps and looks good only because production is now going to be much lower than expected in 2015 & especially 2016 due to the 50% drop in capex in 2015 alone.

Oil price of $60 WTI & $65 Brent is already way under water & debt review is only 90 days away. $2.5B borrowing base & $2.2B of it used doesn't leave much room for any downward revision before difficult choices will need to be made, so unless the oil price recovers quickly, this could get ugly fast.

LOTM