Some points from the release you may not know.
https://www.invictaenergy.ca/pdf/currentReleases/Aug42011.pdf
Invicta has also constructed a treating facility at
a central location in order to treat its own oil. This facility will enable Invicta to reduce
overall operating expenses and increase netbacks.
During the second quarter, Invicta acquired a suspended wellbore in Central Alberta,
which has been successfully reactivated and is currently averaging 30 to 35 boepd of light
oil and solution gas. Invicta has accumulated 9.25 sections of land in this area. In
addition, the Company has acquired several 2D lines of seismic in order to evaluate this
multi zone prospect.
9.25 sections around a suspended well producing 35 boepd. many wells shut down when oil was $40 a couple years ago
Financial Update
The Company has obtained a $3.0 million revolving credit facility with ATB Financial.
This facility bears interest at prime plus 1.25%. Accordingly, the $2.5 million Tallinn
Capital credit facility was paid out on closing significantly reducing the Company’s
financing cost. A combination of advances under this credit facility, operating cash flow,
and the $4.3 million of net proceeds from the recently completed equity financing will be
used to finance the Company’s planned 2011 $14 million capital program.
1.25% above prime. alot of people pay more than that for there morgage. Now has double that amount. Still cheap at these levels.