RE:RE:RE:RE:obe posted 'going concern warning' way back in q1 financialsExactly right, Hendrick.The poster here that likes to harp on the issue is only trying to convince himself.
Below is a response from IR( from a few weeks ago and before great Q3 report) to my query on the subject.
************************ "This mention in the forward looking statements refers to the same wording that has been disclosed in both our financial statements and MD&A since our Q4 2019 report. The main driver of this wording was due to the drastic decline and volatility of oil prices in the face of the COVID-19 pandemic. Each time our financial statements are released, we review our internal forecast using recent strip pricing and make an assessment if sufficient liquidity exists. As we have disclosed in each of the recent quarters, we have forecasted more than sufficient liquidity, including in March and April when oil prices were at their lowest. However, like most in the Oil & Gas industry, the impact of the COVID-19 pandemic on oil prices is uncertain so if significant downward volatility occurred, this could cause a concern.
Below is the statement in our Q2 MD&A, similar wording is also included in Note 2 of our Financial Statements.
"As at June 30, 2020, Obsidian Energy had sufficient liquidity under our syndicated credit facility to meet our current obligations. Based on strip pricing as of July 22, 2020, the Company is currently forecasting that sufficient liquidity exists under our syndicated credit facility to fund and, based on these strip prices, does not expect to have a development capital program in the second half of 2020. However, due to significant commodity price volatility experienced since March 2020 mainly due to the impact of the COVID-19 pandemic on the demand for commodities and OPEC production levels, future significant decreases to commodity prices may occur which could impact future cash flows and cause uncertainty as to whether the Company has sufficient liquidity over the next 12 months. As a result, the Company may be required to obtain additional financing to increase liquidity, the availability of which is uncertain at this time. As such there is a material uncertainty that casts substantial doubt on the Company’s ability to continue as a going concern." Page 16, Obsidian Energy Q2 financial report."Enable GingerCannot connect to Ginger Check your internet connection
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