RE: RE: RE: TOO BADI believe their credit line was raised to $170mil after they reached their peak production of 12,000boe/d last spring.
With current production at 9,600 boe/d and perhaps falling due to lack of funds, this is what concerns me when looking towards April when the loans will be up for re-determination.
I do not have industry experience to know what the usual scenarios are when e & p companies buck up against their credit line and cannot access funds. But I am hoping that VRO with positive cash flow and excellent properties will have options, other than to let the banks take them down.
So far they have only been able to sell a small non-core asset for $5mil, the Whitecourt properties are still unsold, although I am not sure if they are still on the First Energy offerings open to bid.
The small back to back day gains from the low of 1.66 give hope we may have seen a bottom, but of course, we did have a 300 point up day to help.