GREY:STPJF - Post by User
Comment by
kavephishon Dec 13, 2012 1:48pm
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Post# 20726119
RE: Re; Diamond 17 response
RE: Re; Diamond 17 response 1. Yes, CLL is producing approx 11500bpd as of sept 30, with a total current capacity of 20Kbpd from Algar and pod 1. They have 940m in debt financed at 8.5% and 8.75%, and their Sept 30 netbacks were quoted at $20.37/bbl. Sooooooo, 11500bpd average * 365 days per year * $20.37 netback = approx $85.5 million. $940 million at 8.5% interest = approx $80 million in interest alone per annum. Very basic calculation I know, and I am not sure if opex in the netback calc includes routine and/or unexpected maintenance expense plus whatever else, but I would agree that CLLs relatively high interest debt is almost crippling given their revenue from operating at just above half capacity.
Interestingly CLL states that they will be railing 50% of their production by year end, but their latest presentation is quite vague as to where it is being railed to. CLL has also been approved for a 24K bbl expansion - not sure how they are going to be able to fund that.