RE: RE: FYI another thing to note is that consolidation in Alberta and Saskatchewan will continue to stay hot. Some of the larger and mid sized company may not mine the lower pricing for their production for a short period of time if it allows them to scoop up other smaller companies that can't sustain themselves during these low gas prices and lower pricing of oil using Alberta price. Many more small and mid sized companies will get taken over in the near future due to these lower pricing and that's where the bigger players can't get what they are looking for (take over companies with great assets).
The one thing that sort of protects Torquay and allows it to run from cash flows is their 97% oil weighting. Even though it's only 600 boe/d, with 97% oil they are getting netbacks over $50 per boe and that's what really matters (the netback). They are making around 25K to 30K profit (taking into account all expenses, taxes and salaries) a week from that production which isn't that bad at all. They can gradually increase this oil production by drilling low cost oil wells using available credit facility and cash flow (their low cost wells should be less than $1 million per well). Bank line can then be increased when they increase their total reserves by drilling more wells.