Cardinal Energy Ltd (Alberta) T.CJ

Card debentures.

[sclarda]

If all the debentures are converted CJ will have $28 million in liability from the debentures and $28 million in cash from the shares issued which could reduce their debt down to $170 million. They could reduce another $40 million by the end of the year bringing debt down to $130 million  which would be very low for a company producing 17000 barrells of oil per day. Dont know of any others with that little debt.

Basically this move makes CJ a lot stronger financially at the cost of a 20% dillution.   

Good trade off in my opinion.

[sclarda]

sclarda wrote If all the debentures are converted CJ will have $28 million in liability from the debentures and $28 million in cash from the shares issued which could reduce their debt down to $170 million. They could reduce another $40 million by the end of the year bringing debt down to $130 million  which would be very low for a company producing 17000 barrells of oil per day. Dont know