Granite Oil Corp GXOCF

RE:RE:18% trading value of the PDP Reserves - who cares?

[CDNOilInvestor]

I must have some faith in the GXO team since they made it this far without folding the tent. The only reason they would not be filing for an NCIB, as far as I see it, would be:
1) capital preservation for growth, or to hold the ship (Growth & Capital is dead in Canada)
2) Debt repayment is seen as more of an advantage that share reduction, and the math have flipped on the debt retirement versus share buy-back at these prices. If debt reduction is the priorty, and they shrunk the line, why?  Seems like a push from the debt holder(s) and being told by the debt holders (I think it's a revolver?) that it's their only choice since production is lower and lower (reducing cash flow).  I wander if there is a Debt:CF limit on the debt?  Or if it dictates the interest rate.  

All questions for the CEO, I might be in Calgary next month and I would love to ask him.

They stated:
"The Company's lenders have mutually agreed to a renewed borrowing base of $47.5 million with a current authorized amount of $42.5 million, which will serve to reduce associated interest and standby costs."

The standby costs are really nothing, versus the confort of a buffer on the line. The banks must pushing for reduced exposure, and they "mutually agreed."  The Banks are tough on shrinking Juniors...  That's how I got to this conclusion.  However, GXO is making cash and repairing the balance sheet, although too slow.  A NCIB in place would be great for SP support.  Don't we all agree??  Keeping in mind the NAV on this company is ~$2.40 (ish).

A little goes a long ways right now!