Rooster Energy PRBEQ

RE:RE:wrong, biggie

[redgreen66]

I was thinking the same thing. This was a bit of a surprise announcement as it was, but that last paragraph was what really caught me off guard.

Without financials being released, it's sort of hard to tell what's happening at the moment. For example, take the excerpt below:

"Robert P. Murphy, Chief Executive Officer commented, "This amendment is the result of a decision by management to proactively address the impact of the severe drop in commodity prices in 2015 and the resultant negative effect on the ability of the Company to comply with the asset coverage ratio covenant in our loan agreement."

One could automatically think that things have suddenly gone sour due to the current climate and they're taking drastic steps to keep things solvent by coordinating the debt. I know thats what popped into my head when I read it. But you could also believe they are taking the responsible route by getting out in front and using the current economic situation to get a better deal on thier debt. My best guess is the well services side is doing it's job and providing a decent return but the production side is bleeding with the current prices.

Incidentally, I was pretty encouraged earlier in the day when I noticed we had decent volume today (200k shares). I noticed that buyer 002 picked up everything moved today from what I could tell.

Anyway right or wrong, that's my best guess right now. Very strange times we are in.