Cathedral Energy Services Ltd T.CET

Two quick notes while awaiting the financials and MD&A

[auburn2]

Conslidated funded debt to tangible net worth is down to 3.5% from 7.3% in the last financials. Regarding that, "Consolidated funded debt to tangible net worth ("TNW") ratio is to be no more than 10% for 2020 Q2 and Q3 and no more than 15% in 2020 Q4 and 2021 Q2. TNW is defined as shareholders' equity plus subordinated debt less investments in or amounts owed by any related party which does not constitute subordinated debt;" so they're in very good shape.

"TNW is defined as shareholders' equity plus subordinated debt less investments in or amounts owed by any related party which does not constitute subordinated debt."

Second,

We continue to monitor our costs and are making further adjustments to our cost structure as warranted. In addition, management continues to evaluate and apply for U.S. and Canadian federal, state and provincial government relief programs for which Cathedral qualifies. To the end of 2020 Q3, Cathedral has recorded the benefit of $1,378 from the Canada Emergency Wage Subsidy ("CEWS") and we are pleased to see the Government of Canada has extended the program to June 2021. In 2020 Q3, we determined that 100% of our USD$750 (CAD$992) U.S. Paycheck Protection Program ("PPP") loan will be forgiven and that benefit was recorded within our financial statements in 2020 Q3. Previously, we had estimated that approximately 70% of the loan proceeds ($525 USD) may be forgiven, if the U.S. Treasury guidelines for forgiveness were met.

Although capital expenditures have been modest, the Company continues to make investments in additional high performance power sections for its nDurance(TM) line of drilling motors with the target being rentals and full package applications in the Delaware and Permian basins. In addition, Cathedral has increased the number of mud lubricated bearing sections specifically targeted for use with rotary steerable systems and high temperature applications in both Eagleford and Haynesville areas. The Company continues to operate a limited number of RapidFire(TM) Measurement-While-Drilling ("MWD") dual telemetry systems on a commercial basis and is planning to increase capacity primarily through cash flow and re-investment of lost-in-hole proceeds. In addition, Cathedral has implemented remote directional drilling and MWD services for an operator in the Viking formations in Canada.

[auburn2]

No futher impairments and write-downs this quarter. TNW was $45,627. They are a survivor with extraordinary leverage, but some patience is required. TNW is a more conserative version of the shareholders' equity metric. https://www.investopedia.com/ask/answers/062615/what-difference-between-shareholder-equity-and-net-tangible-assets.asp Net tangible assets is the theoretical value of a

[auburn2]

Also I'd be interested in having others share peer comparables where the ratio of TNW to market cap is as attractive as it is at CET. $6.86 million market cap at 14 cents. That gives me a ratio of TNW/MC of about 6.7, which is very high, and that is after various impairments to get to this portion of the extreme bear market cycle for this sector.