Painted Pony Pete Ltd PDPYF

RE:RE:RE:These guys..

[briliantpebbles]

this deal is highly higly dilutive. if you go back and look at the january plan they said they would exit 2018 at about 89k boe/d. it's on page 6 of the jan presenation. if you look at the pro forma guidance issued today ppy now says they will exit 2018 at 89.6 boe/d. So they just diluted 36% and took on new debt of $46m and all it does is take them back to the original january 2017 plan. This means that that original plan was not worth the paper it was printed on. And to execute that plan they acutally needed to dilute shareholders 36% as well as take on new debt. ppy managemnet the most promotional team in canada and one of the highest paid.

yes you are right about the debt. they also need to find a way to finance 2 expansions of the town facility in the next 18 months. this is why they bought assets and sold stock. to increase their borrowing capacity. this is a travesty.

spacegimp wrote: yeah so why did PPY pay so much... 34k/flowing vs. 19k/flowing(PPY)   ?   they already had 60 years of drilling  on what they claim is  much better metrics than the owners they just bought from  ... also does anyone know  how much they plan on paying toward the townsend lease per year going forward as I see they chose to reduce the capital portion going forward , I geuss its not lease to own anymore  but more like an extra $350 million long term debt( at what interest , looks big ?)    So they really have $680 million long term debt going forward($330 mill. projected 2018 used on  cred. fac.  plus $350 mill. lease owed)  with about  $400 million annual revenue starting in 2018  after ramping up , a high decline  but apparently good cashflow  as long as you exclude  interest costs on facility and leases .